The growing advancement of artificial intelligence (AI) technologies has prompted local governments worldwide to contemplate incorporating it into their operations. This study investigates the intersection of digitalization and AI within the framework of local governance, drawing on principles from the sustainable development paradigm. Utilizing a hybrid study technique that incorporates both constructivist and positivist paradigms, the research demonstrates that AI can serve as a tool and intermediary between individuals and governments, assisting them in understanding one another and developing a more democratic governance model. It can also promote community welfare and health, break down socioeconomic barriers, and ensure a more sustainable and fair future for all. Particular attention is paid to the possibilities of AI in facilitating effective environmental (ecological) monitoring in communities.