AI can revolutionise local government and drive growth
The UK is on the cusp of a digital revolution in government.
While central government has made significant progress in ensuring the wider public sector uses technology effectively – for example, through its recently published ‘AI opportunities action plan’ and its ‘Blueprint for modern digital government’ – it is local government that holds the key to unlocking the true potential of artificial intelligence (AI).
This potential isn’t simply about digitising existing processes; it’s about fundamentally reshaping public services to improve lives, build stronger communities and drive economic growth.
Local authorities are already demonstrating their potential as leaders in AI-driven innovation. Their deep understanding of community needs, trusted relationships with residents, and access to extensive datasets make them ideal innovators.
Councils are pioneering the use of AI to improve lives and boost local economies, and showcasing its potential to transform public services and deliver truly resident-centric solutions, and as a powerful force for good in local communities.
AI can transform libraries into even more vibrant community hubs, offering AI-powered learning tools, personalised reading recommendations, and interactive workshops on coding and digital literacy.
Councils can leverage AI-powered data analytics to identify individuals at risk of social isolation, proactively connecting them with relevant support services and community groups.
Social workers, equipped with AI-powered assistants on their tablets, can automate administrative tasks such as taking notes and scheduling meetings, freeing them to focus on building relationships and providing personalised support to families.
Residents can use AI chatbots to report issues such as potholes, schedule repairs, and access council services 24/7, while AI-powered platforms facilitate meaningful online engagement in local decision-making by summarising diverse perspectives and identifying common ground.
Achieving this vision requires more than just technology; it demands a shift in mindset, a commitment to innovation, and a willingness to embrace new ways of working.
This transformation also requires strong partnerships between local authorities and innovative technology providers, especially small and medium-sized enterprises (SMEs). These businesses, often at the forefront of AI development, bring agility, specialised expertise and fresh perspectives to address the unique challenges faced by local government.
Initiatives such as the LGA’s Technology Innovation Showcase, in partnership with digital transformation partner PUBLIC, demonstrate the power of collaboration. By bringing together councils and SMEs, it fosters co-creation, knowledge sharing, and the development of tailored solutions for local communities. This approach accelerates digital transformation, and ensures responsible, ethical and safe AI development and deployment.
The LGA is committed to supporting councils on their AI journey. Our AI hub provides resources, including case studies of how councils are using AI, policy briefings, and soon-to-be published explainer videos (see the March edition of first for more on these).
The LGA has also established dedicated AI networks for council staff, fostering peer learning and knowledge sharing.
In addition, we are actively engaging with government and regulators to ensure local government’s voice shapes national AI policy, and we’re collaborating on practical guidance for councils on how to deploy AI safely.
Local government’s embrace of AI can be a powerful engine for UK industrial growth. By harnessing data and AI, councils can analyse local economic trends to identify emerging sectors for investment and support. They can model and optimise local infrastructure to ensure it supports economic activity, analyse skills gaps and future workforce needs to develop targeted training programmes, and foster vibrant innovation ecosystems by connecting businesses, researchers and investors.
Despite this potential, significant challenges remain. Funding constraints, skills gaps and capacity limitations are hindering wider AI adoption.
“A coordinated national approach is crucial. This must include a seat at the table: local government must have a strong voice in shaping national AI strategies”
To unlock the true potential of AI in local government, a coordinated national approach is crucial. This must include a seat at the table: local government must have a strong voice in shaping national AI strategies and guidance. These challenges and priorities must be recognised and integrated into public, sector-wide support programmes, and a direct relationship between local government and the Department for Science, Innovation and Technology (DSIT) is essential.
A coordinated national approach also requires targeted support: councils need tailored help to drive digital innovation, including funding for new technologies and approaches to service delivery.
This should involve working with technology company partners to develop scalable solutions and modernise legacy IT systems. Additionally, funding should be allocated to equip council staff with essential digital skills, and capacity building provided for councillors to ensure robust local democratic oversight of AI deployment.
A centralised body, such as the LGA’s proposed Local Government Centre for Digital Technology, could efficiently channel this support.
We also need robust assurance and competition, amid concerns about market concentration, as responsible AI deployment hinges on trustworthy development.
Mandatory adherence to standards such as the DSIT’s ‘AI management essentials’, coupled with third-party verification, is vital to ensure public trust, while local government can play a pivotal role in fostering competition in the AI market, particularly by supporting SMEs and encouraging innovative solutions.
AI can be a powerful tool for digital inclusion, but its implementation requires careful consideration to avoid widening existing inequalities. Local authorities are crucial partners in achieving national digital inclusion goals and require adequate resources to implement effective programmes.
We also need an integrated approach to infrastructure.
Local government supports the UK Government’s digital connectivity ambitions to drive economic growth, stimulate local economies, and ensure all regions benefit from next-generation digital infrastructure.
In line with the Government’s digital transformation ambitions from analogue to digital public service delivery, particularly in the NHS over the next 10 years, connectivity and sustainable AI infrastructure are essential.
AI infrastructure must be considered in an integrated way with other forms of digital infrastructure plans and connectivity ambitions that the Government has, and local government should be considered a key partner in delivery.
Finally, we need regulatory clarity: the current AI regulatory landscape is fragmented and confusing.
A centralised, proactive approach, led by DSIT, is needed to provide clarity and foster innovation. This approach should include clear guidelines on the ethical use of AI, ensuring responsible development and deployment with appropriate oversight mechanisms to mitigate potential risks and societal harms.
AI has the potential to revolutionise local government, driving efficiency, improving services, and boosting productivity. As the Government pushes for growth and innovation, local authorities must be empowered to harness the transformative power of AI.
This requires investment, skills development, risk mitigation, and a collaborative approach that puts local government at the heart of the UK’s AI revolution. Only then can we ensure that everyone benefits from the potential of AI innovation.
- See the LGA’s report, ‘State of Digital Local Government’. See more on the LGA’s digital policy work and support for councils, and our AI hub