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Cash-Strapped Solihull Council Turns to AI to Unlock Major Savings

Facing tight budgets, Solihull Council is embracing the power of artificial intelligence to generate significant savings and improve efficiency. As one of the early adopters in local government, council staff have already begun using AI tools to accelerate routine tasks such as writing and note-taking. Now, the council is taking the next step to scale up its AI capabilities, inspired by the success stories of other authorities.

A recent report to the council’s Resources and Delivering Value Scrutiny Board highlighted Derby City Council’s example, where a SMART AI Transformation Programme saved £7.5 million by automating telephone and web inquiries—freeing staff to focus on more complex issues. This success has motivated Solihull leaders to invest further in AI-driven transformation.

At the November 24 meeting of the Civic Suite, council officials proposed allocating £630,800 from the transformation fund to hire a dedicated programme manager and an AI technical expert for two years. Additionally, they plan to engage an external delivery partner to develop detailed business cases for AI projects.

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Andrew Felton, Solihull’s Director of Resources, emphasized that AI has emerged as a key tool for innovation following extensive research into other councils' experiences. However, some councillors expressed concerns about the expenditure on new roles. Councillor Edward Fitter suggested that training existing directors or upskilling the IT team might be more cost-effective, while Felton responded that advice from more advanced councils supports hiring dedicated staff to accelerate progress.

Councillor Kathryn Thomas welcomed the focus on strong governance and quality data management in the AI rollout, calling it a positive and necessary approach. Councillor Leslie Kaye voiced strong support for the initiative, highlighting AI as the future and stressing the potential for substantial savings despite expected learning curves.

The urgency to embrace AI comes amid challenging financial pressures, with Solihull Council forecasting a budget shortfall of around £2.7 million in the coming year. As the council moves forward with this ambitious plan, it hopes AI will play a central role in delivering value and shaping a sustainable future for local services.

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