To: Board of Supervisors
From: Marc Shorr, Information Technology Director
Report Title: Contract amendment with Madison Artificial Intelligence, Inc. to continue developing and supporting automated solutions related to staff report writing, contract management, and real property records.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Chief Information Officer, or designee, to execute a contract amendment with Madison Artificial Intelligence, Inc. to increase the payment limit by $230,000 to a new payment limit of $325,000, to cover an annual subscription fee and one-time data fee that was mistakenly omitted from the initial contract, and amend the term of the contract to provide for successive one-year renewal terms after the expiration of the initial term on December 8, 2028, to continue developing and supporting automated solutions related to staff report writing, contract management, and real property records.
FISCAL IMPACT:
The FY26/27 cost of this contract is included in the Department’s budget allocation for the IT Project “Artificial Intelligence Professional Services.” 100% General Fund.
BACKGROUND:
For FY 2025-26, the Board approved a $500,000 General Fund allocation for the “Artificial Intelligence Professional Services” IT project to be administered by the Department of Information Technology (DoIT) and the County Administrator’s Office (CAO). In May 2025, the County established an internal Artificial Intelligence Policy and invited departments to propose innovative AI pilot projects. Following a collaborative review process involving the CAO, DoIT, Clerk of the Board, Health Services, and Conservation and Development, the group evaluated four (4) AI vendors and recommended an initial engagement with Madison Artificial Intelligence, Inc.
Madison Artificial Intelligence, Inc. will configure its AI software to develop three (3) proof-of-concept AI solutions designed to improve staff efficiency and service delivery for specific departmental functions. For the Clerk of the Board, the AI tools will assist with drafting and summarizing staff reports and conducting research using historical templates and existing data. For Health Services, the AI will support procurement and contracting activities by searching historical contracts, locating approved language, identifying sample clauses, and accessing templates. For Conservation and Development, the AI will assist with researching property history and allowable uses, as well as drafting related documents. Collectively, these solutions are intended to streamline operations and enhance services provided to County staff and residents.
Madison Artificial Intelligence, Inc. will provide AI solutions utilizing the County’s established institutional data sources. The contract’s data and security provisions have been reviewed by DoIT and are consistent with the County’s IT Security Standards.
The Board approved Madison Artificial Intelligence, Inc. Contract No. 5065500 on January 3, 2026, and the County is now requesting an amendment to add an annual subscription fee of $95,000 beginning in 2026, a one-time $40,000 data fee, annual fee increases of up to 3% beginning in 2029, usage and Azure AI Search cost adjustment provisions, and to revise the
contract term through December 8, 2028, with automatic one-year renewals thereafter unless either party provides thirty (30) days’ notice of non-renewal.
The contract’s Special Conditions contain a limitation of liability provision, which caps Madison Artificial Intelligence, Inc.’s liability at the amount paid by the County during the twelve (12) months preceding the event that gave rise to the claim.
CONSEQUENCE OF NEGATIVE ACTION:
If the AI solution is not purchased, the County will continue to face inefficiencies from manual processes, reduced staff productivity, and missed opportunities to improve service quality and consistency.