Denver City Council Rejects Chatbot Contract Extension

The city voted 9-3 against a $3.9 million deal to continue using the Citibot AI service.

Updated on Oct. 22, 2026 in Remote Work

Denver City Council Rejects Chatbot Contract Extension

Live Poll

Should city governments prioritize human employees over using AI chatbots for public customer service?

Denver officials rejected a five-year, $3.9 million contract extension for the AI chatbot service Citibot. The decision marks a pushback against replacing human roles with technology, even as the chatbot holds a 90 percent satisfaction rating.

Why it matters

Council members are prioritizing the preservation of human staff over automated systems for city services. This shift aims to address concerns regarding the replacement of employees by artificial intelligence, despite the chatbot's efficiency in managing non-emergency inquiries.

The rejected contract was valued at $3.9 million over five years. The city currently projects a 40% increase in 311 call volumes and wait times if the chatbot is removed from service.

The players

Denver City Council

This is the legislative body responsible for city ordinances, budget approvals, and the oversight of municipal services in Denver.

Citibot

This company provides AI-powered chatbot solutions specifically designed for local governments to interact with citizens and manage routine inquiries.

The details

The city intends to shift its approach to 311 services by hiring and training three new human agents by summer 2027. While the Sunny chatbot, which supports 72 languages, remains operational, its future is limited by the expiration of the current contract in October 2026.

The chatbot Sunny launched in Denver in 2024.
The current chatbot contract expires at the end of October 2026.
Denver targets hiring three new 311 agents by summer 2027.
City budget funds for the chatbot run through the end of 2027.

Market Landscape

The council's move highlights a broader tension in the public sector as municipalities evaluate the integration of AI tools against traditional labor models. This reflects a growing trend of local governments reconsidering the balance between automation and human-centric service delivery.

Residents may face longer wait times for 311 assistance if the chatbot is retired without sufficient human staffing replacements. The city is currently navigating how to balance immediate service efficiency with long-term hiring goals for public agents.

The takeaway

This decision underscores the political challenges of adopting new technology in public service roles. Citizens should anticipate potential shifts in how they interact with 311 support as the city works to transition from chatbot-led responses back to human-staffed centers.