How do councils move beyond AI piloting to embed artificial intelligence in a way that delivers real savings, better services and public trust? That was the question put to emerging local government leaders at Lambeth LBC, as it hosted the opening challenge of LG Challenge 2026.
Set against a backdrop of financial pressure, rising demand for statutory services and an ambitious borough wide vision, the challenge asked participants to confront the realities of scaling AI, not as a technology exercise, but as part of leadership, culture and delivery strategy.
From the outset, contestants were immersed in the borough's operating reality. Senior political and corporate leaders set the scene, before technical briefings outlined Lambeth's existing AI activity, from generative AI pilots such as Microsoft Copilot, to predictive analytics supporting prevention in homelessness and social care. Just as importantly, teams heard candid reflections on the challenges ahead for the sector.
Lambeth, a diverse inner London borough of more than 325,000 residents, has bold ambitions in its Lambeth 2030 plan to create a fairer, more equitable place where everyone can thrive. Recent LGA peer review feedback has recognised strong political and organisational leadership, while also underlining the need for accelerated digital transformation, with AI seen as a key enabler.
The challenge question therefore put to the two competing teams over an intense 24 hours at Lambeth Town Hall was: how can Lambeth effectively scale and embed AI over the next 12 to 36 months to enable transformation, maximise efficiencies and improve outcomes for residents?
From the outset, contestants were immersed in the borough's operating reality. Senior political and corporate leaders set the scene, before technical briefings outlined Lambeth's existing AI activity, from generative AI pilots such as Microsoft Copilot, to predictive analytics supporting prevention in homelessness and social care. Just as importantly, teams heard candid reflections on the challenges ahead for the sector.
The bulk of the first day was spent engaging directly with the organisation. Contestants met colleagues from workforce and organisational development, digital and data teams, adult social care, public health, housing, strategy and communications. The aim was clear: proposals needed to be grounded in frontline delivery, organisational culture and political accountability, not abstract models of innovation.
Day two shifted the focus from exploration to execution. Further sessions with planning and building control teams, senior digital leaders and the London Office of Technology and Innovation gave participants a final opportunity to test ideas before turning them into deliverable proposals. By early afternoon, each team submitted a four page briefing paper and prepared to pitch to a senior judging panel.
While both teams tackled the same question, their approaches reflected different routes to the same goal.
Team Athena positioned AI as an organisational development opportunity rather than a technology programme. Their proposal, titled A Future Ready Lambeth, put forward a values led, ‘human in the lead' approach rooted in equity, kindness and accountability. At its heart was a Digital Innovation Board reporting into the Lambeth 2030 governance, bringing together service leaders, finance, strategy and communications to oversee AI decisions corporately.
Athena's model combined two parallel strands: ‘People First', focused on building workforce confidence through clear leadership, accessible training and consistent messaging; and ‘Scaling our Strengths', aimed at accelerating what already works through rapid pilots, clear decision frameworks and a test and learn approach. The team placed particular emphasis on early wins in lower risk, high value areas such as customer contact, productivity and demand forecasting, while embedding equality, resident engagement and democratic oversight into governance from the outset.
Team Paradigm focused on culture as the critical enabler. Their proposal argued the importance of communication and collaboration between senior leadership and middle management to embed AI. They recommended creating new leadership forums to do this, alongside a robust ethical framework overseen by a data ethics board. Central to their model was a ‘triple lock' system, mandatory training before AI access, transparent labelling of AI assisted outputs, and service embedded AI champions, designed to ensure accountability, trust and safe adoption. Over time, they envisaged Lambeth building towards a more ambitious integrated data capability once foundations were firmly in place.
In final presentations, judges probed both teams on feasibility, ethics, workforce impact and how success would be measured. After deliberation, the panel selected Team Athena as the winning pitch, citing the clarity of its governance model, its focus on people and culture, and its practical pathway from pilots to scale.
Beyond the competition, the Lambeth challenge offered a microcosm of the questions facing local government more broadly. AI is no longer a distant prospect or a niche innovation; the issue now is how councils embed it responsibly and transparently, using the tools available to the benefit of good value services for local communities.
Michael Barrett, Adviser – Leadership, Local Government Association
