Derby City Council Harnesses AI to Save £12.5m Annually: A Case Study in Efficiency and Innovation

In an effort to improve efficiency and save costs, Derby City Council is rolling out artificial intelligence (AI) tools for its staff. With the goal of saving almost £12.5m a year, the council has identified 261 tasks where officials believe AI can make improvements, focusing on 54 areas where AI can bring benefits most quickly.

One of the key projects the council has implemented is the use of chatbots, including Darcie and Ali, which have handled over a million web and phone queries. The council initially expected AI tools to handle 20% of phone calls, but the actual figure has already reached 43%.

By utilizing AI tools, Derby City Council hopes to save £4m in the 2024/25 financial year, with savings forecasted to rise to close to £12.25m once the system is fully installed. The bulk of the savings, some £8.9m, will come from adult social care, according to council documents.

This initiative by Derby City Council is part of a growing trend in the public sector to improve efficiency and productivity through the use of AI tools. Research conducted by Goldsmiths University, for Microsoft, suggests that public sector workers could save over 23 million hours of administration each week with the deployment of AI tools.

While there are risks associated with AI deployment, such as security risks and potential mistakes or misleading advice, Derby City Council has set up an AI compliance and ethics board to monitor its roll-out. The council is also using AI for multi-language translation and document redaction, with plans to expand its use further, provided it continues to prove its value.

As an early adopter of AI, Derby City Council is eager to share its experiences and lessons learned with other public sector bodies. By embracing AI technology, the council aims to improve efficiencies, save costs, and free up staff to focus on higher-value, more complex work.