AI in Local Government: Adoption, Benefits and Challenges

This report provides a timely stocktake of how artificial intelligence is being adopted in local government, what benefits are emerging, and what barriers still limit its wider deployment. It draws on analysis of 101 published AI case studies and engagement with a wide range of stakeholders, from local and central government, government agencies, academia, and private sector experts.

The report finds that maturity of usage varies significantly across councils, but that there is particularly strong emerging use of large language model (LLM) tools for tasks such as note-taking, transcription, drafting and translation, as well as use of chatbots both internally and on a customer-facing basis. Wider use cases across the sector include sensor-enabled systems, predictive analytics and some early robotics applications. Quantification of benefits is mixed, but strongest in terms of organisational efficiency improvements, as well as benefits for customers.

“Local authority usage of artificial intelligence (AI) is increasing. Many councils consider themselves to be at a relatively early stage of adoption, but there is also evidence of increasingly sophisticated implementation. The promise of AI is that it can help address the many challenges facing local authorities arising from the longstanding financial pressures they face, coupled with rising service demand from residents.”

Kevin Fenning

The report concludes that AI can deliver meaningful efficiency and service-quality gains, but that councils need stronger evidence, better capability, careful governance, and practical support from the wider sector and Government to adopt AI responsibly and at scale.


Meet the Author

Kevin Fenning is the Founder of Evidence First and a Fellow of the Local Policy Innovation Partnership (LPIP) Hub. Kevin leads research and analysis for a wide range of public and private organisations, including local government, central government, universities and colleges, and business representative organisations. Local and regional economic development is a core focus of his work, which involves analysis and policy work in thematic areas such as businesses and sectors, labour markets and skills, innovation, housing, infrastructure, net zero, and health.   

Publications

Skills for the Future: Demand for and Supply of High-Skilled Labour Across England

This study maps employer demand for higher-level qualifications (at Regulated Qualifications Framework (RQF) Level 4 and above), the supply of residents with these qualifications, and the resulting demand-supply gaps across England’s 38 Local Skills Improvement Plan (LSIP) areas (as defined in 2023). It combines online vacancy data and official labour

Dialling Up Democracy in the 21st Century: Pathways for Renewal

This policy working paper explores how democratic innovation can help renew trust, participation, and legitimacy in the UK’s democratic system. Building on earlier LPIP work on social value and community-centred innovation, it examines the social, institutional, and structural pressures currently facing democracy, particularly in the context of devolution and regional

Developing Place-Based Green Industrial Policy in the UK

In this report, Ed Atkins argues that green industrial policy in the UK must be rooted in place. Through the review of cases of Vestas in the Isle of Wight, BiFab in Scotland, and Britishvolt in north-east England, he illuminates how gaps between political ambition and political economy have led