Earlier this year, the Department of Science, Innovation and Technology (DSIT) released an AI Opportunities Action Plan outlining how public service delivery and the way people interact with government can be transformed. However, there is minimal guidance on what this will specifically look like for local authorities. Many local governments are already using AI tools effectively, but the pressure to scale deployment while maintaining trust and quality of service within the communities they serve can lead to difficult decisions.
There is an overwhelming choice of AI tools available, and while the report provides some explanation of the benefits, it is still not clear which services will help and which will hinder. What types of AI are there? How can they be applied? Are they ethical? And most importantly, how can authorities ensure new AI initiatives deliver meaningful efficiency savings?
Leveraging AI: Improving local government services
The AI assistant is already being used within local government customer portals, where residents can ask questions, upload files and images, and receive answers in real-time.
With an integrated system, customers can make service requests by simply asking questions in natural language, without having to fill out long forms. This approach can also be applied to voice interfaces in the future, improving accessibility for all users. For service requests, each form must be carefully managed, designed to work across multiple devices, and understandable to residents who may not know the specific terminology used by council. These forms typically trigger workflows that apply service level rules, integrate with back-office systems, and route requests to the appropriate teams.
Agenttic AI can reduce reliance on such static forms by allowing residents to interact through conversational interfaces that understand their intentions. For example, instead of filling out a lengthy form to report an abandoned vehicle, residents can simply describe the problem in everyday language and the system will interpret it.
By deploying agent AI in this way, local governments can modernize their digital service delivery, reduce administrative burden, improve efficiency, and meet resident expectations in a post-pandemic always-on world.
Ethical considerations in AI
As AI becomes increasingly integrated into public services, ethical considerations will become important. People need to understand how AI makes decisions. This means that the system must be transparent and accountable to both authorities and the public. The data that trains these systems needs to reflect the diversity of the population to ensure fair outcomes for everyone.
Privacy and data security are also important. Governments must comply with regulations such as GDPR, limit the amount of data collected, and ensure that personal information is adequately protected.
When people feel informed and engaged, they are more likely to see AI as a helpful tool rather than something to be feared.
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Barriers to adoption
Despite the benefits of AI, a major barrier to adoption in local government is concerns about the handling of personal data. The Council is wary of sensitive information being used to train third-party models or being processed outside of a secure environment.
To address this, Congress should require explicit assurances that personal data remains within the Azure tenant, is not used to train public models, and meets GDPR requirements. These commitments can be formalized with a data protection impact assessment (DPIA), clear terms of service, and documentation that confirms that data is processed only in the customer's Azure regions with tenant-isolated storage and compute.
Increase efficiency with AI
Another example of the use of AI in local authorities is the introduction of planning application verification tools. For example, we worked with Salford City Council's planning department to deploy an AI validator that automates and speeds up complex checks, freeing up staff for higher value tasks and supporting 24/7 self-service.
These tools have significantly reduced processing time. For example, the time it takes to verify and register a standard Head of Household application has been reduced from approximately 40 minutes to just 15 minutes.
AI return on investment (ROI)
The potential of AI is vast, but its value must be measurably demonstrated. Local governments can measure the ROI of AI by tracking cost savings, efficiency gains, and resident satisfaction against clear benchmarks. Metrics such as reduced processing time, automation savings, and increased revenue emphasize value, while qualitative benefits such as improved citizen engagement and data-driven decision-making increase impact.
Weighing these benefits against the total cost, including implementation and maintenance, will ensure that your AI project achieves both your immediate and long-term goals.
There are ROI calculators available, such as the ROI calculator for AI Planning Validator mentioned above, and some AI providers offer these for specific tools. As budgets tighten and demand on public services increases, AI's ability to reduce manual work, streamline processes, and improve service delivery will continue to be important.
The journey of AI in local government is just beginning. Although challenges remain, the benefits of AI in streamlining operations, improving service levels, and increasing cost efficiency are already becoming apparent. However, it is important that the entire public sector deploys AI ethically and responsibly, ensuring that it delivers value to the communities it serves in a fair, transparent, and accountable manner.
