By Real World Wire
This page covers artificial intelligence in government: city chatbots and AI search, consultants' AI-assisted reports, police drones, new rules for drone flights and AI agents that reach public systems.
Resident-facing chatbots draw the most complaints. A proposed extension of the contract for Denver's website chatbot failed in the City Council, 3 votes for and 9 against, its minutes show. [1] In Orland Park, Illinois, a resident told trustees of the village's phone chatbot, "I never could be connected to a person at all," The Regional News reported. [5] Britain's Medway Council said its new AI website search was meant to cut "avoidable calls and emails" to customer service. [6]
AI in government work has also cost money. Deloitte refunded A$97,587 on an Australian government report contract worth about A$440,000 after using AI in it, The Guardian and the Australian Greens reported. [2][3] Albania named an AI assistant, Diella, a cabinet "minister" for public procurement, The Guardian reported. [7]
Rules are changing too. The FAA proposed rules covering drones up to 1,320 pounds, including cargo, flying beyond the pilot's line of sight. [4]
Each case below covers what was deployed, what it cost where disclosed, and what went wrong.
Sources
- City and County of Denver, City Council minutes, Oct. 13, 2026 (resolution 26-1373). denver.legistar1.com
- The Guardian, Krishani Dhanji, “Deloitte to pay money back to Albanese government after using AI in $440,000 report,” Oct. 6, 2025. theguardian.com
- Australian Greens, “Greens slam Deloitte's unethical behaviour and measly refund over AI report bungle,” media release, Oct. 9, 2025. greens.org.au
- Federal Aviation Administration and Transportation Security Administration, “Normalizing Unmanned Aircraft Systems Beyond Visual Line of Sight Operations” (proposed rule), 90 FR 38212, Aug. 7, 2025. federalregister.gov
- The Regional News, Jeff Vorva, “Orland Park residents say village chatbot won't connect them,” Oct. 7, 2026. southwestregionalpublishing.com
- Medway Council, “Medway launches AI powered website search tool,” April 15, 2026. medway.gov.uk
- Jon Henley, The Guardian, “Albania puts AI-created 'minister' in charge of public procurement,” Sept. 11, 2025. theguardian.com
© 2026 Real World Wire. Written October 28, 2026.
9 cases, newest first.
The country's procurement agency said in August it had only just drafted the terms for a tender to build the system. The Constitutional Court has rejected the opposition's challenge to Diella's appointment.
Case study · October 2026 · Part 3 of 3: Albania's AI "Minister" Diella
The council rejected five more years for Sunny, the city's AI chatbot, 9-3. The mayor's office says the bot helps 311 staff and wants the contract back.
Case study · October 2026 · Part 1 of 1: Denver 311 chatbot Sunny
Orland Park, Ill., moved its main phone line to an AI assistant named Humphrey. Two residents told trustees they couldn't reach anyone. The mayor said, "A human will call you."
Case study · October 2026 · Part 1 of 1: Orland Park chatbot Humphrey
An unreleased model got past repeated blocks on a government statistics site in June. Australia heard about it in September, by email to a public mailbox.
Case study · September 2026 · Part 1 of 1: OpenAI and Services Australia
A local outlet found the council's new search box naming a defeated MP and a councillor who died in 2021. The council says it fixed the errors "within hours."
Case study · April 2026 · Part 1 of 1: Medway Council AI search
The welfare-compliance review cited sources that don't exist. Deloitte refunded A$97,587, and the department's head said her staff shouldn't have to check a consultant's footnotes.
Case study · October 2025 · Part 1 of 1: Deloitte AI Report Refund
Prime Minister Edi Rama says Diella will make tenders "100% free of corruption." He hasn't said how. A decree now makes him responsible for her.
Case study · September 2025 · Part 2 of 3: Albania's AI "Minister" Diella
A proposed Part 108 would replace case-by-case waivers with permits and certificates for delivery, farm, survey and public-safety drones. The FAA did not put a dollar figure on the benefits.
Case study · August 2025 · Part 1 of 1: FAA Part 108 drone rule
The city opened a real-time intelligence center and began sending a Skydio drone to 911 calls, sometimes ahead of officers. A privacy group objects.
Case study · March 2025 · Part 1 of 1: Miami Beach police drones
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