AI in local government – why skills are the missing link in digital transformation

Guest blog by Toby Barnard, Managing Director; Public Sector at QA #LocalGovTransformation

Toby Barnard

Managing Director; Public Sector, QA

Local councils are facing a perfect storm of challenging factors – rising demand, shrinking budgets and ever-more citizens expecting new and efficient, digital-first services.

Emerging technologies like AI promise smarter, faster, more personalised delivery. But the truth is, technology alone won’t deliver change. People are the essential vehicle to make it happen. It’s not just about investing in new tech; it’s about developing your teams with up-to-date skills.

Skills. That’s the critical factor. The future of local government hinges on it. Without the right digital capabilities, councils risk falling behind in this transformative era.

The AI opportunity in local government

AI is already reshaping public services right now. From automating routine tasks to enabling predictive insights, councils have an unprecedented opportunity to improve efficiency and citizen outcomes.

Let’s look at some real AI applications that can – and already do – transform how councils operate and the services they provide.

1 – Predictive analytics in children’s social care is gaining traction – but not without controversy. While these tools promise early intervention and better resource allocation, research warns of serious risks. Algorithms can amplify bias, misinterpret complex human situations, and erode trust between families and professionals. The technology often relies on incomplete or historic data, which can lead to flawed predictions and unintended harm.

There is a middle-road solution. It requires ethical diligence, and a key combination of advanced technical skills, alongside nuanced institutional knowledge by social care professionals. AI should support, not replace, professional judgement.

Ethical frameworks, transparency, and robust training are essential to avoid predictive analytics becoming a blunt instrument. Done well, it can help identify risk earlier and improve outcomes. Done badly, it can damage lives and public confidence.

This is a perfect example of the high stakes involved in local council adoption of AI and underpins the need for a human-first approach led with appropriate upskilling, to avoid opaque systems and flawed decision making.

2 – Chatbots for council websites. According to crown commercial services, Chatbots and virtual assistants can transform how councils engage with citizens. They’re appearing on websites, phone systems, text messaging and mobile apps, making services easier to find and more accessible. They handle routine queries – from bins and recycling to parking, council tax, planning and housing – with automated responses that work around the clock.

But is it working? Crown commercial says yes; councils will see cost and efficiency savings, consistent service delivery 24/7, and improved first-contact resolution. Customer experience improves while call volumes and associated costs fall.

Staff are freed from repetitive tasks, creating capacity without increasing headcount. Integration with other service areas becomes seamless, and reporting and analytics provide clear insights into usage and performance.

The result, ultimately, is a citizen-centric workforce and smarter public service delivery. If these systems are built and deployed right.

3 – AI to accelerate planning and housing. The UK government this year introduced experimental AI to help councils tackle one of their toughest challenges – meeting housing targets.

AI technology offers the ability to digitise decades of paper records, unlocking data that has long been buried in filing cabinets to make it accessible and usable. This means faster planning decisions, better visibility of land availability, and more accurate forecasting for housing development.

By leveraging this approach, councils have the opportunity to streamline processes, reduce administrative bottlenecks, and accelerate housing delivery. Once again, its success depends on more than technology. It requires skilled teams who understand how to manage data responsibly and apply AI ethically. This is how to ensure digitisation lives up to its promise of being a catalyst for change, rather than devolving into another layer of complexity.

The barrier – skills gap and organisational readiness

It’s clear from the case studies above that AI adoption for local councils isn’t just about procurement. You need skilled teams who can implement, manage and optimise these tools.

Yet, the digital skills gap remains a significant barrier across local government. Civica’s Future of Local Government Report 2025 demonstrates that ambition isn’t the problem – capability is. Councils want to modernise systems, improve citizen experience and cut costs. But the journey is stalling, because of a persistent lack of digital literacy among staff.

40% of councils admit their workforce lacks the skills to deliver transformation. Without confident, digitally fluent teams, technology investment becomes worthless. Leadership uncertainty compounds the problem, with over half of respondents unsure about their organisation’s digital strategy.

Councils need to invest in people – building digital confidence and clarity, from the frontline all the way to the boardroom. Until then, ambitions for AI, automation and smarter services will remain just that: ambitions, and nothing more.

The solution – building digital confidence

At QA, we’ve spent over 40 years helping organisations navigate technological change. We know that transformation succeeds when people feel empowered – not overwhelmed – by technology.

For councils, this means:

Practical training in AI fundamentals and data ethics.
Role-specific programmes for service managers and IT teams.
Leadership development to guide strategic decisions.

Adopt a skills-first approach to digital transformation. Start with people, so that they can apply technology in a meaningful, impactful way.

Looking ahead – what can you do now?

AI and emerging tech will define the next decade of local government. But the question isn’t whether councils will adopt these tools – it’s whether they’ll do so effectively. The only road to sustained future success, is to invest in the workforce today.

We’re ready to partner with councils to close the skills gap and unlock the full potential of AI. If are too, get in touch.

techUK’s future of local government campaign

techUK has launched its future of local government campaign, showcasing how digital innovation can strengthen local services and support thriving communities. The campaign highlights member insights, practical examples, and opportunities to collaborate on modern, citizen-focused delivery across councils.

Explore the full campaign

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