Despite the exponential growth in the popularity of artificial intelligence (AI), our knowledge on the public perception of AI, especially in the context of local government services, is still limited. To bridge this gap, this study aims to provide empirical evidence and insights into public perceptions concerning the use of AI in local government services. Our methodological approach involves collecting data via an online survey from the residents of three major Australian cities—i.e., Sydney, Melbourne, Brisbane—and Hong Kong (n = 850), and performing statistical analyses. We found that: (a) Ease of using AI is significantly and positively influenced by attitude towards AI; (b) Attitude towards AI significantly and positively influences perceived usefulness of AI in local government services; (c) AI is seen useful in resource management and to improve delivery of service, reduction of cost to provide urban-service, improvement of public safety, and monitoring the effectiveness of strategies to manage environmental crisis, and; (d) AI is more positively perceived by Australians in comparison to Hong Kongers, indicating the impact of contextual and cultural differences. The research findings inform local government authorities—e.g., urban policymakers, managers, and planners—on their AI policy, planning and implementation decisions.