San Jose Transitions GovAI Coalition to Independent Nonprofit for Scalable AI Governance

The City of San Jose is taking a significant step in the evolution of public sector technology. In a unanimous vote on Tuesday, the San Jose City Council approved the transition of the GovAI Coalition from a city-led initiative into an independent, nonprofit organization. This move is designed to remove the constraints of municipal governance, allowing the coalition to scale its operations and access modern funding streams to better manage the integration of artificial intelligence in government.

What is the GovAI Coalition?

Founded in November 2023, the GovAI Coalition began as a collaborative effort to bring together technologists from various sectors to establish a national benchmark for responsible AI use. The initiative focuses on using AI for social good while ensuring that governance remains ethical, non-discriminatory, and responsible.

The coalition emphasizes several core commitments, including:

• Improving the delivery of government services.
• Promoting accountability among AI vendors.
• Fostering knowledge sharing and collaboration across different agencies.

Scaling from a Local Initiative to a Global Network

What started as a video-conferencing call with approximately 50 agencies has grown rapidly. The GovAI Coalition now boasts more than 3,000 members representing over 900 government agencies across multiple countries. This membership is open to representatives from government, academia, and the private sector.

The Power of Collective Bargaining

One of the coalition’s most strategic goals is to bridge the AI governance gap through procurement. Traditionally, local and state governments have lacked the individual bargaining power to compel large AI vendors to comply with strict governance requirements. By pooling resources, the GovAI Coalition uses “the power of the purse” to standardize AI governance and level the playing field when dealing with private sector vendors.

The coalition was spearheaded by a group of U.S. Entities, including cities such as San Jose, Cleveland, San Antonio, San Diego, St. Paul, and Long Beach, as well as the County of San Diego, the State of Colorado Department of Revenue, and the Tri-County Metropolitan Transportation District of Oregon.

The Transition to Nonprofit Status

According to San Jose CIO Khaled Tawfik, the nonprofit model is essential for sustained operations. Operating as a city initiative limited the coalition’s ability to secure funding and scale effectively. By obtaining 501(c)(3) status, the organization can now pursue philanthropic funding.

Key details of the transition include:

• Timeline: The process to achieve full nonprofit status will take approximately nine months.
• Interim Management: The coalition will operate under an interim fiscal sponsor during the transition.
• Funding: The transition is being funded by the Packard Foundation, ensuring there is no impact on San Jose’s general fund.

Key Takeaways

Looking Ahead

As AI continues to transform public services—making them faster, safer, and more cost-effective—the GovAI Coalition’s shift to a nonprofit model positions it to lead the charge in responsible implementation. By moving beyond the boundaries of a single city’s administration, the coalition is poised to reshape how the public sector procures and manages AI technology on a global scale.