Tony Blair Institute: Councils could save £8bn a year with AI

Tony Blair Institute Councils could save £8bn a year with AI
Credit: Pedro Alvarez/The Observer

UK (Parliament Politics Magazine) – The Tony Blair Institute says AI in local councils could slash £8bn in public spending and lower yearly household costs by £325.

As reported by The Telegraph, the use of artificial intelligence in councils may deliver £325 in annual savings per household, according to the Tony Blair Institute.

The institute estimated that AI could enhance local authority operations and generate taxpayer savings of at least £8bn across England and Wales.

What did the Tony Blair Institute say about AI in councils?

According to reports, AI could be employed to address backlogs in public services and expedite pothole repairs. This follows a week after the Tony Blair Institute’s net-zero report sparked debates within the Labour Party.

The former prime minister criticized the plans to phase out fossil fuels as unworkable but later reversed his stance after intervention from Downing Street.

The newly released report, Governing in the Age of AI: Reimagining Local Government, is expected to be much less controversial.

According to TBI, 26% of local government tasks could be automated with AI, saving one million work hours per council annually.

On a national scale, AI automation could save £8 billion annually, or £325 per household, while clearing backlogs and enhancing public services.

By automating routine tasks, AI would enable social workers to dedicate more time to personal, face-to-face work. The use of AI can also speed up the assessment of elderly social care applicants, including creating care plans and organizing documents more efficiently.

What did Alexander Iosad say about AI’s impact on local government?

Alexander Iosad, the TBI’s director of government innovation policy, stated,

“Local government has shown in the past how it can be an engine of change but is at risk of sputtering. To keep it moving forward, it’s critical that they seize this moment.”

He said,

“By embracing new, AI-enabled tools, local government can deliver a real sense of hope and momentum for citizens who depend on it day-to-day.”

Mr Iosad stated,

“We can clear the backlogs in social services and repairs, radically speed up planning permissions to meet the Government’s housebuilding agenda and build strong local economies deeply rooted in place. From fixing potholes to ambitious projects that transform the fortunes of communities, AI can make councils match fit again.”

He added,

“As new councillors of all political colours get to work, they have the once-in-a-generation opportunity to redefine their role, reimagine local government, and build a legacy of true leadership and change.”

What did Cllr Rowan Ree say about revolutionising local government with technology?

Cllr Rowan Ree, Cabinet Member Finance and Reform at Hammersmith and Fulham Council stated,

“Too often in local government, councils defend old fashioned, bureaucratic service delivery because ‘that is the way it has always been done’. The rapid technological development of recent years has the potential to revolutionise local government, making councils more efficient and improving the services we can offer to residents.” 

He added,

“We welcome this report, its recommendations, and the opportunities technology brings to make local government ruthlessly financially efficient.”

Use cases for AI in local government

  • Public Safety: AI predicts crime patterns and supports law enforcement.
  • Traffic Management: It optimizes traffic flow and public transport schedules.
  • Citizen Services: AI chatbots handle inquiries and service requests.
  • Urban Planning: It analyzes data for efficient city development.
  • Healthcare: Artificial intelligence improves service delivery and case management.
  • Environmental Monitoring: AI tracks pollution and waste management.
  • Emergency Response: It predicts disasters and aids in crisis management.
  • Financial Management: AI detects fraud and optimizes budgets.
  • Community Engagement: It analyzes public sentiment for better decision-making. 
  • Education: AI personalizes employee training and recruitment.

Daniele Naddei

Daniele Naddei is a journalist at Parliament News covering European affairs, was born in Naples on April 8, 1991. He also serves as the Director of the CentroSud24 newspaper. During the period from 2010 to 2013, Naddei completed an internship at the esteemed local radio station Radio Club 91. Subsequently, he became the author of a weekly magazine published by the Italian Volleyball Federation of Campania (FIPAV Campania), which led to his registration in the professional order of Journalists of Campania in early 2014, listed under publicists. From 2013 to 2018, he worked as a freelance photojournalist and cameraman for external services for Rai and various local entities, including TeleCapri, CapriEvent, and TLA. Additionally, between 2014 and 2017, Naddei collaborated full-time with various newspapers in Campania, both in print and online. During this period, he also resumed his role as Editor-in-Chief at Radio Club 91.
Naddei is actively involved as a press officer for several companies and is responsible for editing cultural and social events in the city through his association with the Medea Fattoria Sociale. This experience continued until 2021. Throughout these years, he hosted or collaborated on football sports programs for various local broadcasters, including TLA, TvLuna, TeleCapri, Radio Stonata, Radio Amore, and Radio Antenna Uno.
From 2016 to 2018, Naddei was employed as an editor at newspapers of national interest within the Il24.it circuit, including Internazionale24, Salute24, and OggiScuola. Since 2019, Naddei has been one of the creators of the Rabona television program "Calcio è Passione," which has been broadcast on TeleCapri Sport since 2023.