Opinion: The local government efficiency dilemma - is AI really the solution?

Despite the Government’s commitment to “modernise public services through digital transformation,” local authorities across the UK continue to rely on disconnected legacy systems that make efficient service delivery a daily struggle. The 2025 UK Public Sector Efficiency Survey found that 94% of public sector workers - including those in local government - face unnecessary hurdles in delivering citizen services. Manual, repetitive tasks and the need to navigate multiple legacy systems are the main culprits. 

These inefficiencies are not just frustrating; they are costly. On average, public sector employees lose five hours every week to clunky or inefficient processes. Scaled across the UK’s 6.12 million public sector workers, that’s over 30 million hours wasted every week. For local government specifically, these lost hours translate to delays in housing applications, planning approvals, benefits processing, and community service delivery; all areas where citizens feel inefficiency most acutely. 

A funding boost – but will it deliver real change? 

The UK government’s £3.25 billion Transformation Fund, announced in the latest Spring Statement, aims to improve productivity across public services, including local authorities. The fund promises to drive efficiency through digital tools and AI, but as with past initiatives, the question remains - will technology investments translate into tangible results for councils under financial strain? 

Promising funding for digital transformation is not enough. Local governments need targeted, measurable reform and a clear strategy for technology modernisation. AI and automation can be powerful enablers, but they are not magic bullets. Their success depends on the quality of data and the agility of the underlying processes. Without process redesign and clear accountability, AI risks adding complexity instead of creating value. 

Manual processes and outdated systems 

Despite progress, local government remains heavily reliant on manual, paper-based workflows. Many departments still require staff to re-enter the same information across multiple systems, The 2025 UK Public Sector Efficiency Survey found that nearly 29% of public sector workers cite this as a top efficiency barrier. Another 28% report that legacy systems hinder their ability to complete tasks efficiently. 

In local councils, this often means social care workers referencing information across a plethora of systems, copying and pasting to create a single view. These inefficiencies aren’t just an inconvenience; they directly impact how quickly residents get the support and services they need. 

Process orchestration and automation present the clearest path forward. Automating repetitive tasks such as data entry, reporting, and progress tracking, can free up local government workers to focus on problem-solving, community engagement, and service innovation. 

The data challenge 

AI can only work with good data. This is where local government faces some of its toughest challenges. Data is often fragmented across multiple legacy databases, from housing and planning to waste management and social care. This fragmentation limits insight, slows decisions, and blocks cross-department collaboration. 

A data fabric approach, which connects data across systems without needing full migration, offers a practical solution. By creating a unified layer of insight, councils can make informed decisions faster; from identifying at-risk households to managing community resources more effectively. 

Confidence and capability gaps 

According to the survey, 62% of public sector workers have confidence in AI’s potential to improve efficiency, but that confidence isn’t universal. In local government, a third (32%) of administrative staff have little or no confidence in government-led efficiency initiatives, compared to 73% of directors. This “directors versus doers” divide highlights a credibility gap: front-line staff are eager for digital reform but remain sceptical of top-down promises that fail to deliver meaningful change on the ground. 

Budget constraints, lack of skills, and data privacy concerns are also key barriers. For local authorities, where resources are stretched thin, the most frequently cited blocker to AI adoption is limited technical expertise (32%), followed by funding and regulatory uncertainty. 

Building the foundations for AI success 

To make AI work for local government, it must be embedded within robust processes and supported by clean, connected data. AI should act as a partner, not a replacement. Its role should centre around enhancing decision-making, not automating it blindly. Councils need agile platforms that allow them to adapt quickly, with low-code tools that empower both IT and non-technical staff to innovate safely. 

The survey found that this is particularly acute in local government, where 37% of respondents describe adapting processes as “very challenging.” Process orchestration platforms can make this change manageable, enabling councils to update workflows dynamically without major system overhauls. 

The path forward 

AI and automation hold genuine promise for local government, but only when built on strong process foundations. Automation can cut through inefficiency, improve transparency, and help deliver the “one front door” experience citizens increasingly expect. 

Modernising local services isn’t just about adopting the latest technology, it’s about designing smarter, more connected processes that put people first. By combining AI with process orchestration, local government can unlock time, resources, and insights to focus on what really matters - building thriving, resilient communities. 

Now is the time for local government to seize the opportunity. Every local service - from waste collection to social care - runs on processes. When we improve those processes with automation and AI, we create more efficient councils, better citizen outcomes, and a more sustainable future for public service delivery.