Derby City Council has partnered with ICS.AI on a £7 million project aimed at using AI to transform areas such as adult social care, customer services, and debt recovery.
During a time when many UK City Councils are facing potential bankruptcy, the four-year project is expected to generate nearly £4 million in savings during the 2024/25 financial year, increasing to over £12 million annually once it is fully delivered.
ICS.AI is a public sector AI firm affiliated with Microsoft, and has clients including the Information Commissioner’s Office, universities, and local government.
During the 2023 pilot phase of the partnership, AI assistants Darcie and Ali handled half a million telephone and web queries, resolving 43% of queries without human input – freeing up staff time to focus on more complicated requests.
Rather than waiting on hold, customers can contact the AI assistants, available 24/7 via phone or web, who are designed to handle complex queries with accuracy, mirroring human-like understanding and responsiveness.
Financial challenges
“The continued financial challenges in the local government sector mean we must consider how we can operate most efficiently while continuing to deliver the best service possible,” said Paul Simpson, chief executive at Derby City Council.
“We believe [AI technology] presents some incredible opportunities, and that used safely and ethically can help to deliver the best outcomes for our citizens in a more efficient and cost-effective way.”
Robin Denton, director for local government at Microsoft UK, said: “Derby City Council’s pioneering use of AI, powered by ICS.AI, sets a benchmark in local government for innovative, efficient service delivery.”
“This journey is just the beginning,” says Martin Neale, CEO of ICS.AI. “We are excited to see how these new AI Copilots will redefine service delivery and set new standards in public service innovation.”
Chatbots have become an increasingly popular use case for AI, with several sectors adopting the technology to boost customer interactions.
