The role of AI in council mergers: Tackling complexity with confidence

Council mergers are among the most ambitious transformations a local authority can undertake. They promise long-term efficiencies and improved service delivery – but the path to realising these benefits is anything but straightforward. From outdated systems and fragmented data to differing organisational cultures and staff concerns, the challenges are significant. Artificial intelligence (AI) is emerging as a powerful ally in navigating this complexity, helping councils modernise, unify, and thrive.

Navigating local government restructuring

Merging councils means more than combining budgets. It involves reconciling:

• Disparate and outdated IT systems that often don’t talk to each other
• Data silos that prevent a unified view of services and residents
• Different ways of working, shaped by years of independent evolution
• Conflicting agendas and priorities between leadership teams
• Varied skillsets and organisational cultures across departments

These factors can slow down progress, increase costs, and create uncertainty for both staff and residents. Without the right tools and strategies, mergers risk becoming reactive rather than transformative.

Unifying systems and data with AI

One of the first and most critical steps in a merger is integrating systems and data. Councils often rely on legacy platforms that are incompatible or poorly documented. AI can help by automating the process of data mapping, cleansing, and consolidation – turning fragmented datasets into a single, reliable source of truth.

Machine learning algorithms can also identify patterns and anomalies across datasets, helping councils uncover inefficiencies, duplication, or gaps in service coverage. This insight is essential for designing a unified operating model that works for the restructured organisation.

Supporting staff through change

Mergers can be unsettling for staff. Roles may change, teams may be restructured, and uncertainty can lead to disengagement. AI can play a supportive role here too.

• Digital Continuous Performance Management tools powered by AI can assess the capabilities of the existing workforce, identify gaps, and recommend training or redeployment opportunities.
• AI-driven HR analytics can help leaders understand workforce sentiment, predict attrition risks, and plan interventions to support staff development and wellbeing.
• Automation of routine tasks can reduce administrative burden, allowing staff to focus on higher-value, people-centric work during a time of change.

By using AI to support – not replace – staff, councils can foster a more resilient and adaptable workforce.

Creating a shared vision with predictive insights

One of the biggest challenges in councils mergers is aligning leadership around a shared vision. AI can help by providing predictive insights that inform strategic planning. For example, councils can use AI to model the financial impact of different service delivery models, forecast demand for services, or simulate the outcomes of policy changes.

These insights enable evidence-based decision-making and help build consensus among stakeholders. They also reduce the risk of costly missteps by highlighting unintended consequences before they occur.

Enhancing the citizen experience during transition

Residents are at the heart of local government, and their experience during a merger matters. AI-powered chatbots and virtual assistants can provide consistent, 24/7 support, helping residents navigate changes in services or access information quickly.

Natural language processing tools can also analyse feedback from social media, surveys, and contact centres to identify emerging concerns or service issues. This allows councils to respond proactively and maintain trust during a period of change.

Mitigating shadow AI

As local governments undergo restructuring to become more agile, efficient, and digitally enabled, addressing the rise of shadow AI becomes a critical component of this transformation. Shadow AI – the unsanctioned use of public AI tools by staff – poses significant risks that can undermine the very goals of restructuring.

Restructuring offers a timely opportunity to:

• Deploy private, UK-hosted LLMs with strict access control, ensuring data sovereignty and compliance across all departments.

• Establish clear AI governance frameworks that define acceptable use, data handling, and accountability.

• Embed AI into workflows, enhancing efficiencies.

• Create dedicated roles or teams (e.g., Chief AI Officer) to oversee AI deployment and compliance.
• Integrate AI risk management into broader governance and cybersecurity strategies.

By adopting secure, UK-hosted AI tools and embedding strong governance frameworks, councils can reduce risk, ensure compliance, and support more efficient, digitally enabled services. This approach empowers staff with trusted technology while fostering a culture of safe, responsible innovation.

Choosing the right technology partner

To unlock the full potential of AI, councils need a technology partner that understands the unique challenges of local government. The right partner will offer not just tools, but strategic guidance – helping councils embed AI in a way that aligns with their goals, values, and regulatory obligations.

A trusted partner will also support change management, ensuring that technology adoption is smooth, inclusive, and sustainable.

Building a future-ready council

Council mergers are not just about consolidation – they’re about transformation. AI offers a way to manage complexity, support staff, and deliver better outcomes for residents. By embracing AI as a strategic enabler, councils can turn the challenge of restructuring into an opportunity to build smarter, more agile, and more responsive local government.

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Don’t miss:

Learn from the experiences of Pam Duke in this free, on-demand webinar – Navigating council mergers: Challenges, solutions, and best practices. Pam discusses her involvement in the restructuring of six districts in Cumbria, with critical insight on overcoming administrative and organisational challenges – a can’t miss for council leaders and stakeholders.