AI, data and devolution in 2025

31 January 2025 Consultancy.uk

The transformative potential of artificial intelligence has recently been touted as being crucial to the UK’s economic revival. Peter Marsden, executive chair at Entec Si, explains how the latest AI and data innovations could also help to shape new public sector arrangements across the UK.

National and international elections took the world by storm last year as new parties took charge, promising a term of change across the globe. Now, as the new year gathers momentum, 2025 seems to already be shaping up to be a year of transformation. From new technology rollouts to the extension of devolution across England, a shakeup is on the cards for local governments across the UK.

Over the past year a surge in investment from the private sector has contributed to the ongoing and exponential growth of AI technology which now pervades our daily lives. Though some may still not fully understand the technology, AI is now embedded in google search tools and day-to-day apps on phones and is particularly evident in the healthcare and fitness industry where technology analyses users’ health and gives advice based on collected data. To harness the full power of AI and reap the benefits it offers, the public sector will have to continue its transformation journey to overcome barriers to sufficient data collection.

For local councils, AI carries the potential to transform everyday tasks and solve issues for local residents whilst carrying out day-to-day services. With proposed initiatives, such as cameras on bin wagons to gather intelligence on roads and potholes, road management could be transformed. Such developments mean AI will act as the engine that informs better decision making and, if done well, AI efficiencies will transform people’s lives.

Data management is a key process for councils to master this year and, with additional funding on its way, now is the perfect time for councils to start preparing to incorporate this process into their operations, alongside the implementation of modern technology. Data strategies and management are critical; nothing can function unless the data is accurate. 

We can also expect to see a rise in autonomy this year, whereby individuals use tools to enhance their own personal and professional lives. By taking a sustainable approach to modernisation, such as giving people the right tools to take away time-consuming admin, people’s work will become much more meaningful, efficient and productive.

Despite being five years on from the pandemic, the last year has seen significant change in work from home expectations, from both employers and employees. Whilst last year saw hybrid working become embedded in working culture, we also saw a big push for being back in the office full-time. Work-life balance remains a hot topic, with the four-day work week rising in popularity across the UK.

This year we can expect to see a broad spectrum of changes across the working landscape as the dialogue around return to office, hybrid working, working from home and the four-day work week continues.

At the end of 2024, the  was released, clearly announcing the new government’s plans to drive the agenda forward. With multiple councils providing the same services on a small scale, the devolution whitepaper lays out plans for greater establishment of combined authorities, creating a more efficient and cohesive experience for local councils and its users.

The government’s devolution agenda is a welcome initiative, but it needs to be put into practice in order to generate change. In fact, we may see steps backwards before progress is made, so investing in transformation projects and keeping ahead of the curve is essential. This is because many local bodies are choosing to hold back on investing in change, despite the need for continued development. Ultimately, the success of the devolution agenda relies heavily on the seriousness of the government’s intent to invest in local services to truly make an impact.

This investment does not mean that financial obstacles facing the public sector are a thing of the past but instead emphasises the importance of partnerships. Due to financial restrictions, meaningful change can sometimes be trickier to achieve, so working across organisations can help ease the pressure on strained resources. To maximise success, it’s key to ensure that investment is sound, and that there is a strong business case supporting it.

The next 12 months are already shaping up to be exciting, brimming with possibilities for change and innovation. The government has laid out some encouraging plans, it’s just a matter of seeing them through. To gain and maintain public trust, local councils need to be honest about what can and can’t be delivered whilst making the most of existing resources.

As we anticipate and look forward to positive change this year, it’s also important to recognise improvements that have already been made, focusing on what’s already been achieved. By recognising what’s been accomplished, we can build on the good that’s already in place and keep propelling ourselves towards a better and brighter future.

Peter Marsden is Executive Chairman at business change consultancy, Entec Si.

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