Exactly one year ago, The MJ chaired a round table to assess the sector's approach to artificial intelligence (AI) and uncovered an eagerness to embrace the opportunity, alongside a wish for collective learning.
Fast forward a year and local government's struggle to organise – so all can share their learnings regarding this tricky challenge for the sector – remains something of an uncracked nut.
Hopes of systematically picking the brains of those councils forging ahead remain largely aspirational. However, this session at The MJ Future Forum Midlands in Stratford-upon-Avon, arranged in partnership with Capita, found that enthusiasm for the possibilities offered up by AI remain undimmed. Indeed, it burns brighter.
As one participant said: ‘It's very much about efficiencies for us. It's not about redundancies, but rather, thinking about what the possibilities of the technology are.'
They pointed out that in the last 12 months staff in their authority had used AI to identify savings and had been ‘chuffed' with what they had achieved.
There was a clear sense of pride that, in service areas where surpluses were previously unheard of, AI had offered the ability to crunch data and rewrite this historic truth. A noteworthy observation from around the table was that while councils were often willing to share their examples of success, there was a reluctance to admit when their authority had invested in an initiative that hadn't worked out. This possibly helps explain the stumbling block for the sector in co-ordinating shared learning.
Back to the positives. One participant referenced the benefits of recruiting young data analysts who were able to bring the knowledge needed to utilise AI effectively.
And there was a hint that looming local government reorganisation (LGR) for much of the sector was bringing about a touch of competitiveness, so councils could demonstrate an ‘element of best in class' which may prove powerful when new unitaries are shaped.
While there was evidence of some councils getting out around the country to learn from others – Derby City Council's ‘phenomenal' use of AI to enhance its ‘front door' was singled out for noting – others were still working largely alone to understand the possibilities and risks of adopting the technology.
This appeared to be true despite an acceptance that the sector was losing out by not capturing a ‘collective understanding' of the lessons already learned across the sector regarding AI.
Yet, with LGR a major preoccupation for many – along, of course, with perennial issues such as balancing budgets – some pointed to limited bandwidth.
One participant admitted that LGR had potentially ‘removed the space' for councils to focus sufficiently on projects such as AI.
However, others took a different tack and pointed to the fact that reorganisation – with its inevitable restructuring of services – offered the perfect opportunity to utilise AI and combine services.
‘It's the perfect opportunity because we can consolidate,' said one voice. ‘AI will allow us to bring in changes to the way we provide services.'
But there was also a warning to ensure changes are not just about cuts and savings.
‘If it doesn't lead to a better customer experience we need to ask why we are doing it,' said one participant.
There remains a very real tension here, with another participant arguing: ‘Unless there is a pounds saving there is not a drive to transform.'
This highlighted the need to ensure AI is used effectively and leads to tangible improvements. Core to this for all around the table was mastering the technology's potential for managing and organising data. This, they agreed, would mean services – particularly those that intersect different departments – could uncover answers that solve issues and address demand.
‘The data is there,' said a participant. ‘So, this is the moment to use AI.'
But many admitted their data was often disparate and there was also a warning that LGR may uncover some nasty surprises.
‘The assumed position may not be in line with the reality,' said one voice.
‘We may assume a council is ahead on digital and when we get in there we may find that the data is not in the right place.'
This was an uncomfortable ‘unknown' for many. And the connected ‘known unknown' was a recognised ‘ignorance' regarding AI.
But while there was a clear desire to push forward decisively with AI and ensure it offers real service improvement, particularly for new unitaries being set up from scratch, there was also a recognition that shaping the message around the technology was vital to ensuring staff were brought willingly along on the journey
‘We don't know what is possible and that is what is holding us back,' said one participant.
It's a collective ignorance that helps explain why another officer scathingly suggested local government remained in the 19th century when it came to digital expertise.
Another concurred that many large contractors working with councils were ‘light years ahead' when it came to AI.
Could this act as something of a warning for Labour ministers eager to pursue insourcing across local government services? After all, no one wants to see refuse collections returning to the horse and cart… If AI offers answers to the woes facing the sector, shouldn't councils be able to utilise the relative expertise that the private sector possesses – at least while local government catches up?
And, ominously, the gathered senior officers warned that the lack of connected data risks holding back councils from making truly informed decisions in relation to LGR. Decisions that could include considering the viability of existing private contracts and the pros and cons of sticking or twisting to an in-house option.
‘We need to understand the data to decide how we set up certain services,' argued one officer.
But while there was a clear desire to push forward decisively with AI and ensure it offers real service improvement, particularly for new unitaries being set up from scratch, there was also a recognition that shaping the message around the technology was vital to ensuring staff were brought willingly along on the journey. Too many, it was suggested, feared their jobs were under threat from a move into a technological ‘bot friendly' future. It was, concurred the participants, a false assumption.
One senior officer at the table reiterated that their authority had been clear to staff that it would not lead to them losing their jobs.
‘AI is going to give us back time, it is not going to give us people.'
Another agreed and added: ‘People aren't going to lose their jobs because of AI, they are going to lose their jobs because they have not adopted it.'
So, when it comes to heading off into an AI future – regardless of uncertainty and recognised ignorance, the sector remains largely united in plumping for the accelerator rather than the brake.
Is AI-enabled BPO the catalyst for real service transformation?
By Bryan Webb, Head of IT, Capita
The recent Future Forum Midlands round table, hosted in partnership with Capita, underscored a pivotal moment for local government: the sector's appetite for artificial intelligence (AI) is stronger than ever, yet the journey to collective learning and scalable impact remains unfinished.
As participants candidly shared, AI's promise is not about redundancy, but about unlocking efficiencies, empowering staff and ultimately, delivering better outcomes for citizens.
At Capita, we believe AI-enabled business process outsourcing (BPO) is central to this transformation. The round table highlighted how councils are already leveraging AI to identify savings and drive innovation in service areas where surpluses were once unimaginable.
However, the sector's progress is hampered by fragmented data, limited bandwidth due to local government reorganisation and a persistent knowledge gap around AI's true potential.
But just how do you practically bridge these divides? Better use of AI and data management could really help public sector organisations consolidate services, unlock actionable insights and foster a culture of continuous improvement.
The round table's discussion made clear that the future of public services hinges on mastering data, enabling councils to make informed decisions, streamline operations and deliver joined-up services that meet evolving community needs.
Crucially, the human dimension must remain at the heart of this journey. As echoed by round table attendees, AI should be a tool for empowerment, not a threat to jobs. But importantly, supporting staff through change, ensuring that technology augments, rather than replaces the vital work of public servants, will be the key to practical delivery – especially when it comes to devolution.
As local government accelerates towards an AI-enabled future, we must all stand ready to lead the way – championing collaboration, sharing best practice and delivering innovative solutions that improve outcomes for all.
Participants at The MJ / Capita round table
Akira Matsutani, director general – Japan Local Government Centre London
Ostap Paparega, deputy chief executive – Wyre Forest DC
Jason King, director of communities – South & East Lincolnshire Councils Partnership
Michelle Sacks, chief executive – Huntingdonshire DC
Mary Lester, strategic director of resident services – Nottingham City Council
Simon Howick, managing director – ODS Group
Bryan Webb, Head of IT – Capita
Mike Burton (chair), editorial director – The MJ
Paul Marinko (reporting), deputy editor – The MJ
