This study builds on the findings of previous research, based on the data collected though the recent years, and provides a deeper exploration of the opportunities and challenges faced by subnational authorities in adopting AI and GenAI. It examines the impact of these technologies on the quality of citizen interactions and the efficiency of both internal and cross-administration processes. Additionally, the study offers specific recommendations on how AI and GenAI can help bridge digital divides across various territories and groups of citizens. It also investigates the role of political leaders in advancing AI and GenAI adoption, highlighting the importance of collaboration between technical and political levels to ensure effective implementation.