Cheshire East Council eyes £60 million AI savings amid financial struggles

Cash-strapped Cheshire East Council is exploring artificial intelligence as a potential financial lifeline, with an internal report claiming AI implementation could save the local authority between £40-60 million over five years. This initiative comes at a critical time for the council, which has faced ongoing financial difficulties requiring exceptional government support for two consecutive years, making AI adoption a potentially significant strategy in its broader transformation plan.

The big picture: An internal assessment by Cheshire East Council identifies artificial intelligence as a source of substantial potential savings across multiple service areas.

• The report suggests AI implementation could generate between £40-60 million in savings over a five-year period through improved service delivery and operational efficiencies.
• Council officials believe AI solutions could specifically benefit customer service operations, adult social care, and children’s services departments.

Key benefits: Beyond cost savings, the report highlights several operational improvements that AI technology could deliver.

• AI implementation could significantly reduce call volumes to the council’s contact centers, streamlining customer service operations.
• The technology is expected to assist both social services and children’s services departments in their work.
• Officials note AI could help reduce administrative backlogs and improve data accuracy across council operations.

Financial context: The AI initiative emerges amid significant financial challenges for the local authority.

• Cheshire East Council has been granted exceptional financial support from the government for the second consecutive year, allowing it to borrow funds to cover day-to-day expenses.
• The council is already pursuing a broader transformation plan aimed at reducing costs and improving financial sustainability.
• The AI proposal will be reviewed by the council’s corporate policy committee as part of ongoing financial planning.