From AI Chat to an Action-Oriented Public Administration

Why Municipalities Need an Agent Strategy Rather Than Another General-Purpose AI Chat Platform Artificial intelligence is increasingly becoming a strategic instrument for public administration. While many organizations initially introduce general-purpose AI chatbots as an entry point to generative AI, sustainable value does not arise from dialogue alone, but from linking knowledge, administrative processes, and digital operational capability. This article argues that municipal AI strategies should focus more strongly on specialized agents. Using a Microsoft 365-based target architecture as an example, the article shows how agents can deliver administrative knowledge, support processes, automate tasks, and thereby make a sustainable contribution to administrative digitalization. It also examines requirements relating to knowledge management, governance, human oversight, and organizational accountability. Keywords: Artificial Intelligence, AI Agents, Microsoft Copilot, Copilot Studio, Local Government, Digitalization, Administrative Modernization, Knowledge Management