How AI is driving a fresh wave of transformation in local government

It’s difficult to find a local authority in Australia that’s hasn’t undertaken at least one major ERP deployment. Where the biggest councils began in the nineties, their smaller counterparts followed through the 2000s and 2010s.

At the moment, some councils are continuing to use legacy ERP and on-premise systems, but perhaps not for much longer. The productivity uplift promised by AI is prompting many to consider their options and start building a business case for transition to next-generation platforms and programs. However, standing that case up can be a significant hurdle, particularly for smaller, cash-strapped council administrations that are required to juggle multiple competing priorities.

Historically, bricks and mortar projects, and services that deliver a direct benefit to ratepayers, were prioritised over investments in high-tech infrastructure; leaving many councils to limp along with legacy solutions that impede rather than support productivity.

Making a compelling case for change

Overcoming that obstacle requires administrators to be able to demonstrate convincingly that the software and services they’re seeking to invest in are fit for purpose and represent value for money for their end customer: the ratepaying citizens. This means taking a rigorous approach to high-tech procurement, by using structured methodologies to make procurement decisions that are well considered and defensible.

As part of the process, local authority decision-makers are delving more deeply into the functionality and value of the solutions under consideration. Questions about which platform and modules to choose and how long implementation will take are no longer the focus. Instead, they’re asking potential suppliers to show the measurable productivity gains and cost savings their AI-powered platforms can deliver.

Harnessing the power of AI in a public sector setting

While much discussion about AI deployment is focused on chatbots and content generation, there are other opportunities for councils to harness the power of this game-changing technology. Development assessment is a clear example: it is a key local government responsibility, yet it is very much a labour-intensive activity for councils operating in manual or semi-manual mode. Workflows are high-volume, rules-driven and document-intensive, making them ripe for AI transformation.

Automating document analysis, compliance checking and workflow triage can reduce the backlog of applications in what has long been ‘situation normal’ for many councils. Doing so can free skilled assessors up to focus on more complex decisions and enable property owners and developers to progress their projects faster. At a time when local authorities are pressured to play their part in addressing the national housing shortage, it’s a compelling benefit that may spur forward-looking decision-makers into hastening their transformation journeys.

Recruitment, onboarding, HR and payroll also present strong opportunities. These remain manual or semi-manual processes within many councils, with all the inefficiencies and friction they entail. The introduction of automation can deliver a host of quick wins on this front — such as fewer administrative hours, improved compliance and a better employee experience — whose returns are easily measurable.

Seeking out partners to support transformation

Faced with a host of strategic decisions to make and enact, councils are looking for timely, expert support from vendors and service providers that understand their sector and can deliver the goods.

Against that backdrop, ‘auto-renewal’ with long-term suppliers is far from a given. Instead, existing and potential suppliers alike are being frequently asked to prove their credentials and the value their solutions and teams can bring.

Taking a strategic approach to ERP replacement

The era of the straightforward ERP implementation has well and truly drawn to a close. Across Australia, councils’ business requirements and expectations have evolved significantly. While every journey is different, a couple of common themes have emerged. Councils are treating ERP replacement, AI and business transformation as interconnected elements of a single optimisation strategy. They are also looking for measurable benefits and a strong return on investment. For ratepayers, this should translate into better services, while for vendors and service providers it raises standards for every engagement.

Top image credit: iStock.com/Just_Super