Unlocking the potential of local government: How AI can drive local growth

While central government has made significant progress, it is local government that will benefit the most from harnessing artificial intelligence
Cllr Louise Gittins on the importance of local government

Chair of the LGA, Cllr Louise Gittins, explores how local government can harness the transformative potential of AI to revolutionise public services, drive economic growth and foster innovation through strategic partnerships, investment, and a collaborative national approach.

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 utilises technology effectively – namely through the AI Opportunities Action Plan and the 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, showcasing its potential to transform public services. By embracing AI, councils are proving that technology can be a powerful force for good in local communities. 

To understand this potential, we need to acknowledge the scale and diversity of local government. In England alone, over 1.3 million people work in this sector, delivering over 800 services and managing vast amounts of resident data.

Local government encompasses a wide range of authorities – from district councils with modest budgets to county councils managing billions – interacting with almost every government department.

Despite this diversity, common goals unite them: creating digitally enabled councils, digitally equipped communities, and digitally empowered residents. 

Building the Foundations for AI-driven Transformation

Imagine a future where AI empowers public services to deliver truly resident-centric solutions. 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 like notetaking and scheduling, freeing them up to focus on building relationships and providing personalised support to families.

Residents can use AI chatbots to report issues like 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 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 like 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 like a use case bank, explainer videos, and e-learning modules.

The LGA has established dedicated AI networks for council staff, fostering peer learning and knowledge sharing. We are also 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. 

Overcoming Barriers to Unlock AI’s True Potential

Local government’s embrace of AI can also 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 programs 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. To unlock the true potential of AI in local government, a coordinated national approach is crucial. This must include 

1. 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, with a direct relationship between the sector and DSIT being essential. 

2. Targeted Support: councils need tailored support 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. A centralised body, such as the proposed Local Government Centre for Digital Technology, could efficiently channel this support. 

3. Robust Assurance: responsible AI deployment hinges on trustworthy development. Mandatory adherence to standards like the DSIT’s AI Management Essentials, coupled with third-party verification, is vital to ensure public trust. An enhanced role for public buying organisations could streamline procurement and assurance processes. 

4. Fostering Competition: concerns exist regarding market concentration. Local government can play a pivotal role in fostering competition in the AI market, particularly by supporting SMEs and encouraging innovative solutions. 

5. Digital Inclusion: 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 they require adequate resources to implement effective programmes. 

6. 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 ten years – and the objectives of this Opportunities Action Plan, 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 the Government has, and local government should be considered a key partner in delivery.  

7. 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. 

Final Thought: Empowering Local Authorities to Lead the AI Revolution

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 everyone benefits from the potential of AI innovation. 

louise gittins headshot e1749044984575

Cllr Louise Gittins

Designation

Chair of the Local Government Association

Featured image via The LGA.

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