AI in the workplace: What does the future hold?

Artificial Intelligence (AI) is rapidly transforming the workplace, offering unprecedented opportunities to increase efficiency, reduce costs, and improve public services. For the public sector, AI represents a powerful tool that can help address long-standing challenges, including resource constraints, rising resident expectations and needs, and the complexity of modern governance. However, the integration of AI also brings with it significant risks, challenges, and ethical concerns that need careful consideration. 

Rachael Morris, Senior Consultant at Penna, explores these dimensions, alongside practical examples of how forward-thinking local authorities are leveraging AI to improve administrative functions and enhance human value where it matters most in delivering modern services.  There is a huge case for change here, but the public sector is slow to react. A lot of our clients are currently discussing the options, possibilities, and risks associated with utilising AI in the workplace, and a small number of trailblazers are making changes to relevant systems, policies and processes. We should also keep in mind that culture is more crucial than strategy when we think about changing working practices. Incorporating AI appropriately does start with the tech, systems, and procedures but implementation teams need to also be thinking about culture. 

The benefits

AI’s ability to analyse vast amounts of data is a major benefit for the sector. Local authorities collect and generate vast amounts of data that, when analysed properly, can lead to more informed decision-making. AI tools can then identify patterns, trends, and insights in real-time, enabling officials to anticipate challenges, allocate resources more effectively, and design better policies. For instance, predictive analytics could help social care departments identify at-risk individuals and intervene before problems escalate. Similarly, AI-powered analytics tools can help urban planners model different development scenarios, improving long-term planning and sustainability efforts.

By automating low-value tasks, AI enables the workforce to focus on areas where human skills are most needed—such as decision-making, problem-solving, and providing empathetic support to residents. In addition to this, recruitment and retention create significant challenges for local authorities, and the wider public sector. We know from the LGA workforce survey 2022 that 94% of councils are experiencing recruitment and retention difficulties. Whilst AI won’t resolve all of this, by looking at introducing AI to low-value tasks, the workforce can then be given more meaningful and impactful roles, which can lead to higher job satisfaction and lower turnover rates.

Here at Penna, we are increasingly looking at how automation of low-value tasks in recruitment activity can release the human potential of our teams. We are reviewing our whole resourcing and attraction model to see where we can create efficiencies, allowing our human-centric approach to add more value to our clients and candidates. Reviewing how assessment processes can be different in a modern world is not just about technology though – we have a younger generation in senior leadership positions, and we need to ensure our models cater for different generations who are likely to be more diverse in thought and protected characteristics. Inclusivity is what we do best at Penna, and we are leveraging modern business and technology advances to significantly add value. 

Tackling potential issues

While AI offers substantial benefits, there are several risks involved. Data privacy and security are key concerns, with the potential for cyberattacks and misuse of sensitive information. Strong cybersecurity and compliance with regulations like GDPR are essential. Incorporating AI in decision-making raises transparency and accountability issues, especially if biased data leads to unfair outcomes. Local authorities must ensure diverse, unbiased data and provide residents with mechanisms to challenge AI decisions. Additionally, the automation of tasks could make some jobs obsolete, requiring investment in reskilling the workforce to adapt to new roles, as well as addressing the change head on and developing a technology-led learning culture. 

Pam Parkes, President of the Public Services People Managers Association (PPMA), shares her thoughts on the changes with digital technology. Pam commented:

“Whilst the increasing use of AI will alter the design of some roles and make others obsolete, we should not fear this change but instead lean into the change that is to come.  In fact, in many respects that change is already here, and we are already experiencing and benefiting from the advancement of technology and AI in every aspect of our everyday lives. When last did you visit your high street bank to manage your finances?” 

Pam continued, “We will need to be more focussed on the jobs of the future where automation and AI have less impact providing society with jobs and work that have more meaning and purpose. Automation and AI are here to stay and will in many respects feature in all work. We need to ensure that we are literate in this new technological age, that we are planning for these new skills in our schools, colleges, universities, and workplaces.”

Pam predicts that “the new jobs of the future we will be more focussed on work that at its core is providing enrichment to people’s lives as well as the creation of roles increasingly designed in the creation of new technology. Our role is to smooth the transition for our current and future generations – our orientation to work is changing and engaging with our workforce and workforce representatives “up-stream” will be the difference between those who thrive and those that are left behind.”

Workforce planning is increasingly important in a technology-driven and changing world. HR professionals are well-prepared for this and will engage with you in designing the future workforce construct, as well as gaining the necessary skill required. If you’re not already having this conversation with your HR lead, our advice would be to open the door before getting any further behind. 

Ethical use

Lastly, AI’s lack of transparency can erode public trust, particularly in critical services like front line operations and social care. Local authorities need to ensure that AI decisions are explainable and legally compliant, with clear pathways for accountability. Engaging communities in the ethical use of AI is crucial to maintaining fairness and public confidence. One of our clients said, ‘It’s just not ready yet’, and while that may be so – there are several early adopters that are implementing safe practices. 
By addressing these issues proactively and ensuring that AI is used ethically and transparently, the sector can harness the power of AI to better serve their communities while preserving public trust and accountability.

Community Engagement with AI 

One local authority has taken an innovative approach to the strategic use of AI by stepping back to consider the broader implications of the 4th Industrial Revolution we find ourselves immersed in. Recognising both the immense potential of AI and the risk of leaving some people behind due to its rapid advancement, Manchester City Council (MCC) and Manchester Metropolitan University (MMU) have led to adopt a "people-first" strategy. Their goal is to ensure residents have the education and skills needed to actively shape how AI is used in delivering frontline public services.

This strategic approach led to the creation of the People’s Panel for AI (PPfAI), a groundbreaking initiative involving residents, council officers and sector experts. The panel serves as an informative platform to explain how AI is being applied in public service and, more importantly, to enable residents to influence and co-create solutions to local challenges through digital technology. PPfAI empowers communities to take a leading role in shaping AI-driven service delivery. Council teams bring ideas to the panel, working collaboratively to align service design with the needs and aspirations of local people. This ensures that AI solutions are inclusive, transparent, and focused on improving outcomes for everyone in Manchester. In addition, for those readers interested in which local authorities are leading the way in leveraging AI to transform their operations, information on case studies can be found on the LGA’s website here. 

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