Kingsport approves six‑month AI customer‑service pilot; council seeks public‑records safeguards

The Kingsport Board of Mayor and Aldermen on Aug. 19 approved a resolution to launch a no‑cost, six‑month pilot of a Grace AI customer‑service solution tied to the city’s customer information system.

City staff said the pilot — provided in partnership with the CIS vendor and vendor affiliate entities referenced in the packet — would allow the city to test functionality, scripting and language support without an upfront cost. Staff described 544 hours as the estimated setup time and said the pilot would run for six months, after which the city would reassess.

Council members asked how AI‑generated content would be treated under Tennessee law. One alderman noted that any generated or retained outputs would be subject to the Tennessee Public Records Act; staff responded that “anything that can be kept, anything that is recorded … is subject” and that the pilot would be managed so that retained records fall under public‑records rules. The board also discussed safeguards including scripted testing, vendor monitoring, language support and built‑in human escalation when the system detects customer frustration.

Councilmembers asked for demonstrations before broader deployment; staff said they would arrange demos and allow aldermen to call in during a live test. City staff and the vendor said they would monitor customer experience and adjust the system during the pilot.

The board voted to approve the pilot unanimously. The resolution authorizes staff to execute the statement of work for the AI pilot and to work with the vendor during the test period.