[Nara City] Towards Phase 2 of Local Government Generative AI Utilization: Establishing an Environment for My Number System Operations [Mayor's Press Conference] (Announced April 30, Reiwa 8)

Nara City regards business reforms through AI as an 'unavoidable challenge' against the backdrop of a severe workforce shortage due to the declining birthrate and aging population. In the first phase, AI was primarily used in internet-based systems to improve operational efficiency. However, the 'My Number System Operations,' which handles extremely confidential information such as resident data and taxes, remained an 'AI blank zone' in local governments nationwide due to its isolated environment, preventing AI utilization.

Nara City has now partnered with Hitachi Systems, Ltd. and Amazon Web Services Japan G.K. to construct a 'Secure AI Platform' utilizing the government cloud environment. This initiative allows Nara City to embark on a new stage (Phase 2) of local government AI utilization, maximizing the power of AI while safely protecting confidential information.

Topics:

* Nara City's productive-age population is estimated to decrease by approximately 40% in 30 years, and the population aged 20 by approximately 60%. Drastic business reform using AI is indispensable for maintaining public services.
* Nara City is pioneering the establishment of a secure generative AI utilization environment within the 'My Number System Operations,' which connects approximately 1,000 PCs within city hall, ahead of other municipalities nationwide.
* Utilizing the 'Government Cloud,' certified by the national government for its high-level security, to leverage AI in a secure environment. This ensures information isolation while also securing city-wide scalability.
* Sharing the knowledge gained from this construction with local governments across Japan to accelerate the update and AI integration of Japan's administrative systems.

1. Social Challenges

Accelerating Workforce Shortage

Maintaining public services is reaching its limit due to the declining birthrate and aging population.

Business reform through AI is becoming an 'unavoidable challenge.'

The decline in the productive-age population has a greater impact on local areas, with Nara City also projected to see a decrease of approximately 40%.

Looking at the number of 20-year-olds in Nara City, it is projected to decrease by approximately 60% in 30 years.

2. Secure Three-Tier Network Environment in Local Governments

3. The 'Last Remaining Challenge' in Administrative DX

In internet-based operations, which do not handle personal information, AI utilization has advanced to improve efficiency. However, particularly sensitive information, including personal data, is in a special, externally isolated environment. Consequently, this has remained an 'AI blank zone' in local governments nationwide, preventing AI utilization.

Internet-based PC Count: Approximately 2,500 units

My Number System Operations PC Count: Approximately 1,000 units

4. The 'Last Remaining Challenge' in Administrative DX

Advanced Initiatives

[Solution] Introduction of a 'Secure AI Platform' with extreme safety for My Number System Operations

AI utilization in the Government Cloud environment (a common cloud certified by the national government)

Advantages:

* National Certification Reliability: Operates in an extremely secure environment that meets the government's strict security standards.
* System Advancement: Future integration with other business systems has the potential for dramatic improvements in administrative services.
* Supports City-wide Use: No connection limits, allowing all employees to comfortably utilize AI at any time.

Disadvantages:

* Difficulty of Introduction: As an advanced initiative, it requires coordination with the national government and specialized design know-how.
* Running Costs: Costs according to government cloud and generative AI usage, and system maintenance fees are required.

AI construction using a local environment dedicated to local governments (local government's unique individual operating environment)

Advantages:

* Complete Information Isolation: Can operate 'offline' with no external communication, allowing for the protection of confidential information.
* Fixed Costs: Not usage-based billing, so after initial investment, operating costs are low (e.g., electricity fees).
* Flexible Experimentation: High degree of freedom for utilization targeting small-scale operations, such as verifying specific tasks.

Disadvantages:

* Equipment Investment and Management: Requires procurement of expensive PCs suitable for AI utilization. Maintainability and scalability are difficult compared to the cloud.
* Utilization Limitations: The number of simultaneous users is limited, which is not suitable for city-wide adoption as waiting times may occur.

5. What is the Government Cloud?

It is a cloud infrastructure managed by the Digital Agency, compatible with My Number operations, and operates on a 'closed network' isolated from external connections. It prevents the leakage of citizens' personal information and sensitive data to the internet, allowing AI to be used in a high-security environment.

From the cloud services selected by the Digital Agency, Nara City utilizes Amazon Web Services.

Digital Agency

https://www.digital.go.jp/policies/gov_cloud

6. High-Security Environment

Under the technical support of Hitachi Systems, Ltd. and Amazon Web Services Japan G.K., a proof-of-concept experiment was conducted in the government cloud, handling particularly sensitive information including personal data. By devising system construction methods and establishing strict operational rules, comprehensive measures were taken to prevent information leakage.

7. Future Initiatives

Updating Japan's administrative system