AI in Local Government: Key Implementation Concerns

As local governments across Australia explore artificial intelligence solutions across the data and automation spaces, there are reasonable concerns emerging that warrant careful consideration. Drawing from my experience engaging with the sector, this article examines the key challenges facing councils in AI adoption, with particular focus on workforce implications and public service delivery risks.

The promise of artificial intelligence in transforming local government operations is compelling and inevitable. Yet, having spoken with numerous councils in the early stages of exploring AI implementation, it's clear that several critical concerns need to be addressed before widespread adoption can succeed.

Workforce Implications: Beyond the Automation Narrative

The impact of AI on council staff remains one of the most pressing concerns in the sector. While common narratives around benefits in a commercial environment often focus on job displacement, this is not a palatable message in Councils.

Staff concerns around AI usage typically centre on potential job losses, but also they are concerned about the fundamental changes to their roles and responsibilities. In an often change and risk averse field, managing this transition properly is key. We have seen some implementations struggle because the teams using the AI solutions didn't trust the outputs, putting their operations under so much scrutiny that the benefits of time saved were neutralised by the levels of oversight introduced.

Most council employees will understand that AI will affect their work. The key is helping them recognise how their roles will evolve rather than disappear. Administrative staff, for instance, often find their roles shifting towards quality assurance and exception handling, requiring new skills and offering different kinds of career development opportunities. Ultimately, much of the application of AI in these early stages will be focused on removing low value administrative tasks, so staff can use their expertise more often - leading to improved job satisfaction.

Public Service Delivery: Managing Risk and Reliability

When it comes to public service delivery, the stakes are particularly high. Local governments must balance the efficiency gains of AI against the potential risks of system errors or misinterpretation. AI mistakes in local government can have direct impacts on community members' lives (as the Robodebt scandal showed at a Federal level)

Consider the implications of AI in planning applications or property assessments. While automation can speed up processing times, errors in these areas can have significant consequences for residents and businesses. This necessitates a careful approach to implementation, with robust verification processes and clear accountability frameworks.

Where we guide councils to work is in making sure the administrative side is the first point of attack - removing the low value, low risk tasks such as data capture. Often these tasks can be done with verification against internal systems that minimise the risk of error. This also gives council valuable learnings around what works best in their organisation before extending the application of AI to more complex use cases.

The Data Security Imperative

The management of community data presents another significant challenge. Local governments hold vast amounts of sensitive information, and AI systems require access to this data to function effectively. This raises important questions about data governance, security protocols, and privacy protection.

In our assessment, councils need to develop comprehensive data management strategies before implementing AI solutions that will be leveraging this data. This includes clear policies on data access, processing, and storage, along with robust security measures to protect against potential breaches.

Transparency and Community Trust

Building and maintaining community trust requires careful consideration of how AI implementation is communicated and managed. From experience, successful AI adoption in local government depends heavily on transparent communication about its use and limitations.

This transparency should extend to both internal and external stakeholders, clearly articulating where AI is being used, how decisions are being made, and what oversight measures are in place. A simple example of this would be a chatbot - it is necessary for it to engage with the citizenry in the role of an AI powered tool, not a human agent. The person engaging with the service must know that their data will not be misused or at risk because of the activities the bot can perform.

In Closing

Based on our observations, successful AI implementation in local government requires:

• A balanced approach to workforce transformation, focusing on role evolution rather than replacement
• Robust risk management frameworks for public-facing services
• Comprehensive data security and privacy protocols
• Clear communication strategies that build trust with all stakeholders
• Strong governance frameworks that ensure accountability

The path forward lies not in rushing to adopt AI technology, but in thoughtful implementation that prioritises community benefit while addressing these fundamental concerns.

James Beresford

CEO, Talos - Efficient Decision Making through Automation and Analytics

Want to know more about how we help Local Government become more efficient? Email us at [email protected]

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