AI in Local Government: Navigating the Hype, Reality and how to measure the potential

Aficial Intelligence (AI) often brings to mind advanced systems capable of independent thinking. However, what is typically referred to as AI today is not a true form of intelligence but rather highly sophisticated computational algorithms. From navigation apps on our smartphones to predictive text in messaging, AI has seamlessly integrated into our daily routines, powering many of the technologies we rely on. This blog aims to provide an overview of AI, its different types, and its practical applications, especially in the context of local government.

AI can be classified into several categories, with two main distinctions: Artificial General Intelligence (AGI) and Artificial Narrow Intelligence (ANI). Let’s explore these in more detail.

AGI is the “holy grail” of AI. It refers to machines that can understand, learn, and apply intelligence to any task a human can perform. This would enable machines to adapt to various environments and tackle problems across diverse fields without requiring extensive retraining. While achieving AGI remains a major goal, predictions about its arrival vary. Some experts believe AGI could be realised in the next decade, while others estimate that it might take several decades.

• Versatile Capabilities: AGI can perform intellectual tasks across multiple domains, adapting to changing circumstances.
• Continuous Learning: AGI can transfer knowledge from one area to another, making it more autonomous.
• Autonomous Reasoning: AGI would possess advanced reasoning abilities to solve complex, multi-faceted problems.

On the other hand, ANI is the type of AI we interact with today. ANI systems are designed to perform specific tasks, often better than humans, within a narrowly defined scope.

• Specialised Application: ANI excels at performing tasks such as facial recognition, driving cars, or conducting internet searches.
• Dependent on Data: These systems rely heavily on specific datasets to function.
• Limited Adaptability: ANI operates within the constraints of its programming, unable to transfer its learning to other domains.

NLP enables computers to understand, interpret, and respond to human language. It powers technologies like Amazon Lex, Siri, and Alexa, and helps in real-time translation and sentiment analysis, allowing organisations to monitor customer feedback or social media. This capability is particularly useful in government settings, enabling automated interactions and customer service solutions.

ML is perhaps the most well-known branch of AI today. It uses data to predict outcomes and recognise patterns.

• Predictive Analytics: By using historical data, ML can predict future trends, such as forecasting demand for services or detecting potential fraud.

It’s important to remember that big data all comes from the same place – the past.

A single rogue variable or a ‘black swan event can throw the most perfectly calibrated model into chaos. – Rory Sutherland, Advertising Executive and Vice Chairmain of Ogilvy & Mather Groups.

• Pattern Recognition: ML excels in identifying patterns in data, aiding tasks like image and speech recognition.
• Adaptive Learning: Unlike traditional software, ML models adapt as they are fed new data, improving their accuracy over time.

RPA involves automating repetitive tasks that are otherwise performed by humans, such as data entry or basic customer queries. It promises significant operational efficiencies, reducing human error and costs. However, in local government, RPA has faced challenges. Many large back-office systems identify bots as users, blocking their activity and forcing organisations to rely on more expensive API solutions.

At IEG4, we are leveraging AI to improve the efficiency and accessibility of local government services. For instance, our AI assistant in the Customer Portal allows users to ask questions, upload files or images, and receive answers. This AI assistant uses Natural Language Processing to interpret user input, even when spelling or terminology is incorrect, thereby increasing accessibility for users with lower digital skills.

We are integrating our systems that allow customers to raise service requests simply by asking questions, rather than filling out lengthy forms. This system can eventually be voice-enabled, further improving user accessibility.

Another exciting solution is our Planning AI Validator, introduced following the acquisition of Agile Applications in July 2024. This tool automates and accelerates complex validation processes, freeing up staff for higher-level tasks. It also supports 24/7 services, enabling local governments to meet customer expectations in the post-pandemic, always-on world.

As AI becomes increasingly embedded in public services, ethical considerations become critical. Ensuring AI is transparent, accountable, and fair is essential for maintaining public trust.

• Transparency and Accountability: AI systems should operate in a transparent manner, with decisions explainable to both officials and the public. Human oversight is crucial, ensuring that AI assists in decision-making, rather than replacing human judgment altogether.
• Fairness and Non-Discrimination: AI must be rigorously tested to avoid bias, ensuring that outcomes are fair for all, especially vulnerable or marginalised groups. Training datasets must reflect the diversity of the population to prevent discriminatory practices.
• Privacy and Data Security: AI systems must comply with regulations like GDPR, safeguarding personal data. Data collection should be minimised to respect privacy.
• Public Trust and Engagement: Engaging the public in conversations about AI adoption fosters trust, ensuring that the technology aligns with community values and expectations. Local governments must also communicate openly about how AI is being used.

While the potential of AI is vast, its value must be demonstrated in measurable terms. That is why we have developed an ROI calculator for our AI Planning Validator to quantify the cost savings and efficiencies gained from adopting AI solutions. AI’s ability to reduce manual work, streamline processes, and improve service delivery will continue to be crucial as budgets tighten and demand for public services grows.

The journey of AI in local government has only just begun. While challenges remain, the benefits of AI are already becoming clear in streamlining operations, improving service levels, and driving cost efficiencies. However, it is crucial that we adopt AI ethically and responsibly to ensure it delivers value in a way that is fair, transparent, and accountable to the communities it serves.