Insights

AI in Local Government - from FOMO to focused

Written by Matthew Simons, Rohit Lekhi | 12 December, 2025

AI Catalyst Partner Matthew Simons shares practical steps on how to overcome AI adoption challenges and set the stage for successful AI implementation and adoption with strong foundations.

AI Readiness is a leadership test for Local Councils

Local government leaders are facing a new kind of strategic dilemma. Artificial intelligence has moved from the edges of debate into the centre of public service conversations. Guidance is coming out of Whitehall, neighbouring authorities are announcing AI strategies, and suppliers are arriving with promises to “transform service delivery”.

And yet, behind the noise, one uncomfortable truth remains: there is very little definitive evidence about what works at scale in councils. Most examples are pilots, many are small-scale, and the long-term benefits are still emerging.

This gap between hype and proof is producing two simultaneous — and conflicting — reactions. On one hand, scepticism: why invest precious time and resources in something so uncertain? On the other, fear of missing out: a sense that “something is happening” and those who wait too long will be left behind. Both are understandable. Neither provides a strategic way forward.

Beyond hype or hesitation

The temptation is to think of AI as a technology to be procured or a risk to be managed. But the real question is more fundamental: is your organisation ready to use AI well?

For councils, AI is not about chasing the latest platform. It’s about ensuring the organisation has the capability, confidence, and governance to identify where AI can genuinely improve services — and to do so in a way that builds trust, not undermines it.

In other words: AI readiness is not a technical state, it’s a leadership act.

Leading through uncertainty

The absence of a settled evidence base isn’t a reason to step back. It’s precisely why leadership matters. Councils operate under statutory duties, democratic scrutiny, workforce agreements, and budget constraints. They can’t afford speculative moonshots. But neither can they afford to ignore a technology that is already reshaping how services are planned, delivered, and experienced.

The most effective leaders are approaching AI as they would any transformative shift: by setting direction, creating the conditions for experimentation, and ensuring strong governance. They are not waiting for perfect clarity. They are creating it.

Toe dipping is not a strategy

Many councils are already experimenting: pilots in FOI triage, planning validation, benefits eligibility checks, or HR automation. These initiatives are useful — but on their own, they rarely add up to a coherent path forward.

Without strategic framing, toe-dipping can become fragmented activity: a chatbot here, a bit of document checking there. The risk is wasted effort, duplication, or enthusiasm that fizzles when initial excitement meets operational complexity.

A leadership approach shifts the focus from isolated pilots to building organisational capability. That means understanding where AI could make the biggest difference to service outcomes, ensuring governance is embedded from day one, and giving teams the confidence to test and learn in a structured way.

Excitement and risk - together

It’s easy to frame AI as something to be “managed” — as though it’s just another compliance burden. But that misses half the story. There is something genuinely exciting here. Done well, AI has the potential to give staff back time for work that really matters, to speed up processes that frustrate residents, and to enable smarter decision-making in complex environments.

That excitement is real and it’s precisely why strong leadership is needed to channel it well. Left unchecked, it risks fuelling unrealistic expectations or vendor-led decision-making. Harnessed properly, it can drive focused innovation within the real constraints of local government.

What AI leadership looks like

AI-ready leadership is emerging around three core behaviours:

  • Focusing on service challenges, not technology trends. Leaders start by asking: where are teams spending time on repetitive, rule-based tasks? Where could faster processing or better information genuinely improve service outcomes?.
  • Creating structured spaces for experimentation. Rather than sprawling pilots, leaders identify a small number of priority areas, set clear success metrics, and build internal champions who can drive learning across the organisation.
  • Embedding governance and trust from day one. Data protection, transparency, and accountability are not afterthoughts. They are part of how pilots are designed, ensuring elected members and the public have confidence in how AI is used.

A moment for strong leadership

The current landscape — uncertain evidence, rising interest, real potential — is exactly when leadership matters most. Waiting for a definitive “blueprint” means falling behind. Jumping headfirst into technology decisions without organisational readiness is a recipe for failure.

The alternative is clear: approach AI not as a procurement exercise, but as a strategic leadership opportunity. Councils that do so will not necessarily be the fastest adopters. But they will be the ones that adopt well — building capability, trust, and impact over time.

AI in local government will not be shaped by the loudest claims or the quickest pilots. It will be shaped by leaders who can steer through uncertainty, channel excitement into focused action, and make their organisations ready to use these tools wisely.

That’s not about technology. It’s about leadership — and local government has shown, time and again, that when the moment demands it, it can lead.