Based on the previous recent research and results in this area, notably the EU Public Sector Tech Watch reports and handbooks "European Landscape on the Use of Artificial Intelligence by the Public Sector", "Road to the adoption of AI by the public sector", "A collective effort in exploring the applications of Artificial Intelligence and blockchain in the Public Sector" and a European Parliament briefing on "Artificial Intelligence and Public services", this study on “AI and GenAI adoption by local and regional administrations” (1) analyses the results of the previous studies – which are based on data gathered over the last couple of years – and (2) delves deeper into the opportunities and challenges subnational authorities have with the AI and GenAI adoption and the impact this has on the quality of their interactions with citizens, as well as the efficiency of internal and cross-administration processes. The study also (3) investigates whether and how AI and GenAI could contribute to bridging digital divides across different types of territories and/or groups of citizens. It further (4) examines the role of political leaders in promoting AI, scalability, knowledge sharing and the need for cooperation between the technical and political levels to ensure boost of AI use. In the end, the study offers a number of recommendations for enhancing the adoption and effectiveness of AI and GenAI at subnational level.