How the use of AI in the public sector can reshape hiring, skills, and workforce agility

With a range of workforce challenges, budget constraints, skills shortages, and an aging workforce, greater use of AI in the public sector can deliver a range of benefits.  

At the same time, people expect faster and more efficient services. With money still tight, the government has introduced the AI Opportunities Action Plan. which aims to use technology to streamline public services, ‘eliminate delays through improved data sharing’ and reduce costs.  

The action plan includes the launch of a new package of AI tools for civil servants, training programmes for AI engineers and a proposed ‘experiment’, fund, to improve the use of digital tools across the public sector with the aim of making £45bn in productivity savings. 

With this plan, the UK government has recognised AI’s potential in the public sector, and there is an opportunity to use AI in the public sector to address workforce challenges, and to improve efficiency and service delivery.  

Key challenges facing local authorities

There are a range of challenges facing councils, many of which have been exacerbated by the pandemic.  

• Recruitment. Local authorities face a challenge to recruit staff in a competitive labour market, and against private sector employers who can often offer more attractive salaries.  

• Dealing with gaps in Funding. The LGA estimates a £2.3bn funding gap in the public sector, which limits their ability to recruit and retain staff.  

• Skills shortages. Many councils lack the digital and technical skills needed for modern service delivery. There are also shortages in key areas, including environmental and professional services where the public sector has to compete with high paying private sector organisations.  

• DEI. Continued focus on DEI in the workforce to better “mirror” the wide community – creating fair and inclusive workplaces.  

• Need for automation. HR teams can be overwhelmed with paperwork and manual processes, diverting resources from strategic workforce planning. Routine tasks, such as processing benefits or scheduling staff, consume valuable time and resources. 

• EVP. Local authorities need to build and communicate a compelling EVP that goes beyond pay to attract and retain people in the organisation. For example, provisions for people with caring responsibilities, flexible working, and better onboarding.  

• Workforce agility. Requirement for workforce agility - the local authorities of the future need greater agility and a workforce that can respond to change and deliver services in new and different ways.  

• Workforce planning. Workforce planning needs to be led by HR to capture data and insight about the current and future availability of skills and people for key job roles and service areas.  

AI and digital transformation can help local authorities tackle these issues head-on, enabling more efficient workforce planning and operations. 

Use cases for AI in the public sector

Some councils are currently experimenting with AI, but adoption so far is limited. An LGA survey carried out in February 2024 found that 85% of council respondents were using or exploring AI, with 52% at the beginning of their AI journey.  

More advanced use was rare, with 16% developing capacity and capabilities around AI, 14% making some use of AI while 4% see themselves as innovative in their use of AI. 

While the survey found that councils had discovered benefits in terms of productivity, service efficiencies, and cost savings, the use of AI is very much in its early stages.  

One of the barriers to adoption cited by 41% of councils was a lack of understanding of the use cases for AI. It’s helpful to look at how AI can be used to address some common issues.  

Recruitment, skills shortages, and DEI  

Using AI to surface skills and identify current workforce capabilities enables councils to redeploy workers where they can be most effective, addressing skills needs with training to reduce costs associated with hiring, and helping councils to future-proof their workforce.   

AI also enables councils to get their houses in order around job data and job descriptions with AI enabling the digitisation and centralisation of job data.  

AI can also enable councils to automate the creation of inclusive, skills-focused  job descriptions that can attract a wider talent pool, increasing the reach and appeal of roles in local government.  

Funding  

AI-driven automating of job descriptions saves councils time and costs by reducing HR admin, ensuring compliance, and improving hiring efficiency.  

It enables accurate skills mapping, supports pay transparency, and minimises reliance on consultants.  

At a time when finding for councils is scarce, faster, standardised creation of job descriptions help councils optimise workforce planning, reduce recruitment costs, and enhance service delivery with fewer resources. 

Employee value proposition (EVP) 

With staff retention a key challenge, AI-driven skills insights enable councils to create compelling career paths and training opportunities, making roles in local government more attractive to candidates looking for purpose-driven careers.  

Workforce agility 

A skills approach, using AI to identify key skills and capabilities, enables councils to identify transferable skills across departments, redeploying talent where it is most needed, and adapting job roles dynamically as demands change.  

It also contributes to staff retention, as employees can be deployed where they can make best use of their skill sets.  

Barriers to adoption of AI in the public sector

The LGA identified several barriers to deploying AI in local government:  

• 64% of council respondents saw lack of funding as a barrier.  

• Lack of staff capabilities (53%) 

• Lack of staff capacity (50%) 

• Governance, including AI policies (41%) 

• Lack of clear use cases (41%) 

The UK government’s AI strategy aims to overcome these barriers through a structured approach to AI integration.  

This includes building a secure and sustainable AI infrastructure, the piloting of new AI solutions before full implementation, and cooperation between the public and private sector through which innovative AI suppliers from the UK and around the world should be engaged to support demand and encourage investment.  

The adoption of AI offers UK councils a way to overcome key challenges, from addressing skills shortages to reducing administrative burdens and improving service efficiency.  

As councils navigate these workforce challenges, RoleMapper provides the foundation for transforming job data, managing organisational change, and enabling skills-based workforce planning.