TRAVERSE CITY- The Grand Traverse County Information Technology Department presented a proposal to the Board of Commissioners on Feb. 11, 2026, to establish a Center of Excellence for Artificial Intelligence. The initiative requests a $118,000 investment for the 2027 fiscal year to provide governance, security oversight and documented processes for AI adoption across county departments.
The proposal follows several high-profile federal data breaches and growing concerns regarding AI reliability. Cliff DuPuy, the county’s IT director, informed commissioners that the center would implement a framework aligned with the National Institute of Standards and Technology to protect data for 95,000 residents and 600 county employees. This proactive approach aims to mitigate risks that have led to legal liability and security failures in other government agencies.
The proposed budget for the 2027 fiscal year totals $118,000. This includes $75,000 for one full-time employee, $10,000 for training and development, $18,000 for technology licenses, $7,500 for consulting services and $7,500 for new security and compliance tools. DuPuy stated that the investment is expected to see a positive return within 18 to 24 months through increased efficiency.
The IT Department reported significant security activity during January 2026. The county network handled 491,214 email messages, with 22,408 malicious payloads blocked at the perimeter. Despite these protections, DuPuy noted that 143 emails containing federally protected data were sent without encryption during that month. The department also identified 61 threats that made it through initial filters, including 44 phishing attempts and 12 malware instances.
DuPuy, director of information technology, highlighted challenges with employee compliance regarding cybersecurity protocols. During a phishing exercise in December, 72 county employees clicked on a malicious link. DuPuy noted that some staff members and elected officials have resisted remedial training and refused to sign the county’s acceptable use policy. “I’m trying to keep us out of the press,” DuPuy told commissioners.
Commissioners questioned why the county has not enforced mandatory training for all staff. “Why can’t we mandate everyone take basic security training?” one commissioner asked.
Other commissioners expressed support for the initiative, comparing the impact of AI to the arrival of the internet. “What you’re proposing here is, I think, spot on...This covers both the good and the bad.”
The proposal also addresses the “AI reliability crisis,” citing 486 court cases worldwide involving AI hallucinations. DuPuy noted that 39% of AI-powered customer service bots have been reworked or pulled due to errors. The IT Department’s plan includes “human-in-the-loop” validation, a method used by 76% of enterprises to verify AI-generated content before it reaches the public.
The department presented success stories from other jurisdictions as models for the program. Montgomery County, Md., uses an AI chatbot for citizen queries in 140 languages, while Los Angeles County uses predictive analytics to identify residents at risk of homelessness. DuPuy noted that Grand Traverse County is already developing “Core Connect,” a public-facing chatbot designed to answer questions about wastewater, septic tanks and county budgets.
If the Board of Commissioners approves the proposal, the first AI Steering Committee meeting will be held within 30 days. The IT Department plans to return to the board for formal approval of the Center of Excellence and the updated Acceptable Use Policy in a future session.