AI and digital technology are moving quickly, and municipalities risk falling behind if slow procurement processes and outdated systems hold them back. Resource-constrained local municipalities need to get the right foundations in place now to keep up with change and achieve AI, data, governance and procurement confidence.

The pace of change

IT is advancing at an unprecedented rate, with AI progress particularly dramatic. Research by the Model Evaluation and Threat Research (METR) organisation indicates that the length of software tasks frontier AI agents can complete has increased rapidly over recent years. Earlier METR analysis estimated that AI task-completion time horizons doubled approximately every seven months between 2019 and 2024, highlighting the pace at which AI capabilities continue to evolve.

New AI and automation solutions are continually emerging, promising to help local governments address their most pressing challenges and revolutionise municipal administration, service delivery and public safety.

Globally, AI is already so entrenched in municipal management that Bloomberg Philanthropies and Johns Hopkins University recently introduced the Mayors AI Forum, bringing together some of the world’s most forward-thinking city leaders to collectively demonstrate what visionary, responsible AI implementation can deliver.

Among the technology leaders and founders of the new forum is Nairobi, Kenya, whose governor, Johnson Sakaja, says that the city is already deploying digital tools for transformation and AI will be central to its future. For example, the city, known for its traffic congestion issues, is progressively implementing an AI-enabled traffic system in its intelligent traffic management systems.

However, AI is not just the preserve of large metros. ICMA, a global organisation of local government professionals, notes that even small rural municipalities are benefiting from the technology in low-cost, high-impact use cases such as chatbots to assist citizens, generative AI to enhance communications and supporting administration.

IDC’s 2024 Generative AI Use Case Taxonomy for the National Civilian Government Industry cites multiple use cases, including hyper-personalised benefits and services, eligibility compliance and integrity, public health protection and remediation, economic policy simulations, intelligent evidence management and secure and trusted voting.

Preparing for AI adoption

However, for many South African municipalities hoping to harness these emerging technologies to transform their operations, procurement challenges and delays may mean they risk being left behind as AI adoption accelerates. Procurement buying cycles are notoriously lengthy, and many technology projects have failed to deliver value.

Municipal stakeholders report that compliance with the Municipal Finance Management Act (MFMA) and rigid vetting procedures frequently stall tender awards, and municipal supply chain management units may also lack the resources they need to draft and evaluate complex ICT tenders and submissions.

The recent 2026 NCOP Provincial Week recognised the challenges associated with procurement and project management, with discussions focusing on the themes ‘Confronting the Challenges Facing the Timely Delivery of Viable Public Infrastructure to Communities’ and ‘Building Viable Municipalities for Enhanced Delivery of Basic Services’.

The draft General Public Procurement Regulations, 2026 and draft Public Procurement Tribunal Regulations, 2026 introduce a more comprehensive procurement framework that places greater emphasis on governance, supplier scrutiny, competency requirements, transparency and contract management. Municipalities will need the appropriate capacity and expertise to navigate these requirements effectively.

However, the challenge for most municipalities is not just procuring new AI solutions at speed; it is addressing underlying legacy infrastructure that cannot support advanced technology deployments. Gaps in networks, hardware, data infrastructure and governance can limit the effectiveness of AI deployments.

Building foundations for the future

According to Boston Consulting Group’s Intelligent Cities Index 2026, AI adoption drives better resident outcomes, with cities in the top third of AI adoption delivering a higher quality of life. The report says roadmaps to AI maturity should include clarification of long-term strategic priorities, tightening governance and mobilising partnerships to accelerate delivery, and building enablers by upgrading data and technology platforms, enhancing infrastructure and developing the talent and ecosystem needed to sustain progress.

To overcome procurement delays that slow digital progress, South African municipalities should work with technology partners who have the expertise to set the right foundations in place, help them overcome issues such as legacy infrastructure and siloed data, and guide complex bid evaluations.

BCX helps South African municipalities lay the foundations for a digitally-enabled future. Our data analytics and AI capabilities ensure that smart, secure foundations are in place for AI innovation. BCX’s network and cloud solutions provide the speed and reliability municipalities need for smart city operations, while our SOLAR ERP software provides an integrated financial management system tailored for South African local government needs. SOLAR ERP covers National Treasury’s 15 business processes and ensures compliance with the Municipal Standard Chart of Accounts (mSCOA). It also supports managing budgets, revenue, point-of-sale transactions and transparent financial reporting. BCX’s subject matter experts have extensive municipal experience to help local authorities apply complex legislation and transactional procedures correctly.

BCX’s Municipal Digital Readiness Assessment helps municipalities evaluate workloads, infrastructure, cloud readiness and data environments to inform strategic roadmaps and technology investments that will deliver the greatest value. This helps reduce wasted ICT spend and ensure that any technology procurements are fit for purpose.

Take the Municipal Digital Readiness Assessment and begin planning the way forward.