Artificial Intelligence (AI) Transformation Programme 2026 - 2030
Renfrewshire Council · 29 April 2026
Back to Leadership Board — 29 April 2026 and its agenda
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PUBLIC ___________________________________________________________________ To: Leadership Board On: 29 April 2026 ___________________________________________________________________ Report by: Director of Finance and Resources ___________________________________________________________________ Heading: Artificial Intelligence (AI) Transformation Programme 2026 - 2030 ___________________________________________________________________ 1. Summary 1.1. Renfrewshire Council’s Digital Strategy 2025-2030 sets out a wide ranging programme of work to ensure we continue to improve our local service delivery and meet the needs of our citizens and their expectations in terms of how they want to access information and services today and in the future. Current challenges, including financial sustainability, high service demand, and workforce capacity constraints, create both urgent necessity and significant opportunity for AI-driven efficiency gains as technological solutions develop. 1.2. The Council has carried out an AI Transformation Assessment in consultation with a wide range of employees from across all council services to understand and identify how a range of AI solutions can improve services, enhance efficiency and reduce costs. This assessment has informed the development and completion of a full business case which is now complete. 1.3. The business case as detailed sets out an AI Transformation Programme from 2026-2030 which will enable the organisation to move from early adoption with a range of existing tools, to a broader, sustainable AI-enabled transformation. This will be supported by extensive stakeholder and employee engagement, a robust governance structure and risk management, and support and training for our valued workforce. It ensures that AI will be deployed ethically, safely, consistently and at scale, supporting improved efficiency, better decision- making, strong financial value and enhanced resident outcomes, helping protect services for the longer term.
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PUBLIC 2. Recommendations 2.1. Members are requested to: a) Approve progression of the AI Transformation Programme 2026 - 2030 business case as set out in this report and that appropriate financial provision is incorporated into the 2026 – 2030 budget arrangements. b) Note that regular updates on the AI Transformation Programme 2026 – 2030 will be brought to this Board at key points throughout the programme. c) Note that a six-monthly ‘AI Transparency Report’ will be presented to this Board outlining the AI tools used by the Council, the purpose and function of each system, any data-protection or equality assessments undertaken, changes since the previous report, and any identified risks, mitigations or recommendations for future deployment. _________________________________________________________ 3. Background 3.1. Like most councils, we are facing increasing demand for local public services while costs continue to rise, and budgets are under pressure. Demand continues to rise across adult social care (hospital discharge pressures, complex needs), children's services (ASN assessments, child protection), customer services (35,000 calls monthly to Millie), and statutory compliance (FOI requests, complaints management). 3.2. The Council has a long history of significant transformation which has delivered substantial improvements and efficiencies over past years. Allied with more traditional efficiency measures, service transformation has been an important part of ensuring the Council’s ongoing modernisation and financial stability. 3.3. It is recognised that the Council needs to continue to explore new technology in order that the continual aims of improving and protecting local public services, improving outcomes for our residents and communities, and supporting our workforce. It is also a very important means of ensuring medium to longer term financial sustainability is maintained. 3.4. The way in which people want to access information and services continues to change and we recognise customer expectations about how, when and where they want to access services. Renfrewshire Council’s Digital Strategy 2025- 2030 outlines a programme of work to ensure we continue to deliver our services and meet our citizens’ needs, today and for the future. We are investing in improving our data, our technology and the digital skills of our workforce and supporting our communities to develop the skills required to enable them to interact with us in different ways.
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PUBLIC 3.5. Our Customer and Digital Operations team has made significant changes in recent years in how our customers interact with the Council, reducing telephone call volumes significantly and transitioning these interactions to the online customer account. The introduction of Millie, our AI Digital Advisor in 2024, and the launch of our new website www.Renfrewshire.gov.uk last year have resulted in further improvements in customer service performance, channel shift, operational efficiency and resident experience. 4. Development of an AI transformation programme business case 4.1. Following the successful launch of Millie for our citizens and the internal roll-out of Microsoft Co-pilot as a tool for employees, last year we completed an AI transformation assessment in consultation with more than 100 senior leaders, managers and employees from services from across the council. This assessment was carried out with support from an external partner, ICS.AI. 4.2. An AI transformation assessment is designed to support a Council to evaluate current AI readiness, identify opportunities for AI-driven improvements, and develop a structured roadmap for adopting AI technologies where appropriate. This assessment included significant employee engagement, workshops and data analysis to identify and understand if and how potential AI solutions could improve service delivery for citizens, reduce operating costs and enhance our efficiency, as well as support our workforce by freeing them up from repetitive tasks for more high value work. 4.3. We are also learning from the experiences of other UK local authorities in implementing a range of AI solutions. Derby City Council have welcomed establishing a working relationship with Renfrewshire Council and have been open and highly collaborative in sharing their journey to develop their AI capability. This working partnership will provide future opportunities to share best practice as well as development capacity to support accelerated adoption by both organisations. 4.4. The initial assessment stage was informed by extensive engagement with employees across all services and colleagues who identified a number of areas where our processes and service delivery could be further improved. Colleagues were supportive of using AI to reduce paperwork, improve information flow, and support better decision making, though highlighted the significance of maintaining human oversight in decision making when AI tools are being used. 4.5. A business case has now been developed and tested by senior officers from across all services. It provides a clear understanding of the scale of opportunity and the key priorities for building on successful implementation of other technological developments to further improve local service delivery. It is also expected to make a significant contribution to the Council achieving longer term financial sustainability.
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PUBLIC 5. Programme timeline 5.1. The programme will be delivered in three phases as detailed in Appendix A, beginning with solutions already in place and which will have the maximum impact, benefitting all teams and employees across the council. Phase 1: July 2026-March 2028 Early efficiencies through proven existing products (GenAI Phone, Inbox Management, Staff Copilot), building organisational confidence and user capability. Phase 2: April 2028 – March 2029 Department specific customised solutions. Phase 3: April 2029 – March 2030 More complex, large‑scale transformation opportunities. 6. Implementation benefits 6.1. This business case represents one of the most significant digital transformation opportunities for Renfrewshire Council over the medium term to support the delivery of both financial savings requirements and ensure the delivery of better services and outcomes which will enable improved ways of working as an organisation and support our workforce. 6.2. Financial efficiencies will primarily come from eliminating waste and failure demand, such as repeated identical FOI requests, significant manual data entry into and between systems, document formatting, scheduling conflicts and information searches - freeing up employee time for high-value work like assessment, relationship building, and complex case management. As part of progressing this programme, a review of the process for the management of Council vacancies will be undertaken to help identify posts where AI could support and/or improve delivery, with the objective of releasing savings through natural staff turnover. 6.3. Based on conservative modelling using Renfrewshire Council’s actual operational volumes and current staffing costs, this comprehensive financial assessment demonstrates a transformational opportunity delivering significant annual savings once the full implementation and adoption is achieved across Council services. The achievement of savings will be largely dependent on wide adoption of the technology available. The phasing of savings delivery will be incorporated into the Council’s medium term financial planning and annual budget setting process. 7. Governance and risk management 7.1. A key part of the business case is the requirement for strong governance arrangements. The Council recognises that as AI becomes a larger part of public service delivery, ethical governance and transparent safeguards are essential to protect residents’ rights, prevent bias, and ensure AI continues to
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PUBLIC support key services and our valued workforce. The business case also establishes the requirement for human oversight even in the deployment of technologies to support administrative tasks. 7.2. A clear and transparent governance framework will support informed decision making, maintain employee and public trust and ensure that AI adoption complies with the Council’s policies, legal obligations and information governance standards. 7.3. As AI technologies continue to develop over time, ongoing oversight and regular updates to elected members will be necessary to provide transparency in safe, and responsible deployment and use as these systems evolve. 7.4. The following chart sets out the proposed governance arrangements: AI Strategic Programme Officer Board – strategic direction, financial oversight and risk management. AI Programme Delivery Team – day‑to‑day operational control, compliance and usage monitoring Ethics and Assurance Board – GDPR compliance, DPIAs, fairness, transparency, accountability and human oversight. 7.5. This transformation programme represents a significant strategic investment requiring robust risk management. Risks have been comprehensively assessed with detailed mitigation strategies being developed as noted in Appendix A which provide assurance that financial and delivery risks are appropriately managed.
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PUBLIC 7.6. Clear communication and engagement with services and colleagues is essential for successful adoption. Activity will focus on preparing employees and building confidence to support the required change. This will include a combination of engagement, briefings, training and change support across all audience groups. Implications of the Report 1. Financial The AI Transformation Programme 2026 – 2030 will support the Council’s ongoing financial sustainability which is dependent on the ability of the Council to transform and modernise services. The estimated recurring cost of £0.8m of the AI Transformation Programme will be incorporated into future budget plans to be agreed by Council, while the Council’s Service Modernisation fund will be utilised to fund implementation costs estimated in the region of £2m. Officers are currently exploring potential external funding options which would reduce the need for a draw from the Service Modernisation Fund. Recurring savings are estimated to range from £5-8m dependent on the level of adoption of AI across Council services, with the phasing of savings delivery building from 2027 over an estimated 3 year period. 2. HR & Organisational Development Requirement for awareness and training of staff as new AI solutions are implemented. This will help build confidence and support change across Renfrewshire Council. 3. Community/Council Planning The AI Transformation Programme 2026 - 2030 focuses the delivery of priority outcomes as outlined in the Council Plan. 4. Legal Requirement for support for the Ethics and Assurance Board. 5. Property/Assets – None. 6. Information Technology Requirement for support for the implementation of the AI Transformation Programme 2026 - 2030. 7. Equality & Human Rights An EQIA will be undertaken in developing this next stage of the AI Transformation Programme 2026 – 2030. 8. Health & Safety – None. 9. Procurement The AI Transformation Programme 2026 – 2030 will be subject to an appropriate procurement exercise as part of its implementation. This will be managed
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PUBLIC through the Council’s well established procurement arrangements to secure best value. 10. Risk The AI Transformation Programme is a key element of mitigating the medium- term financial challenge for the Council. 11. Privacy Impact – None. 12. Climate Change – None. 13. Children’s Rights – None. 14. Cosla Policy Position – None. ___________________________________________________________________ List of Background Papers ___________________________________________________________________ Authors: Patrick Murray, Head of Digital, Transformation and Customer Services Gary Innes, Senior Service Delivery Manager
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PUBLIC Appendix A Appendix - Summary: AI Transformation Programme 2026–2030 Purpose This appendix provides a condensed executive and technical summary of the Artificial Intelligence (AI) Transformation Programme 2026–2030, setting out the strategic rationale, delivery model, governance, technical requirements, assurance controls, and financial implications underpinning the programme. The information is intended to support assurance, scrutiny, and cross-reference within wider corporate, financial, digital, or risk reporting. Strategic Context and Rationale Renfrewshire Council faces sustained pressure arising from rising service demand, workforce capacity challenges and financial constraints. Traditional transformation and efficiency approaches have reached practical limits, necessitating a step change in how services are delivered and supported. Within this context, AI has been identified as a core enabling technology capable of delivering scalable efficiency, service improvement, and workforce support AI Transformation Assessment and Evidence Base An AI Transformation Assessment was undertaken during 2025, supported by the Council’s procured AI partner, ICS.AI. The assessment involved extensive engagement with over 100 staff across more than 25 service areas and included: Structured workshops Detailed process and time-on-task analysis Operational data validation Financial modelling Demonstrations and trials of existing AI solutions This assessment identified 194 distinct AI use cases, each mapped to Council-specific processes, validated by frontline practitioners, and aligned to proven AI products already deployed within UK local authorities. The evidence base was subject to challenge and validation by senior officers and Finance Business Partners, providing assurance that the resulting business case is credible, robust, and deliverable. Target Operating Model and Programme Phasing The programme establishes a clear AI Target Operating Model to support ethical, controlled, and scalable AI adoption, enabling progression from early adoption to embedded transformation. Delivery will be structured across three phases:
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PUBLIC Phase 1 (July 2026 – March 2028): Deployment of proven, low-risk AI products (e.g. AI Phone, Inbox Management, Staff Copilot) to deliver early efficiencies and build organisational capability. Phase 2 (April 2028 – March 2029): Targeted implementation of department-specific solutions requiring limited customisation. Phase 3 (April 2029 – March 2030): Deployment of more complex and transformational AI solutions with higher integration and change impact. Each phase is gated and monitored across four dimensions: financial performance, operational efficiency, user adoption and satisfaction, and service quality and outcomes. Progression between phases is contingent on demonstrated delivery and benefit realisation. Cross-Cutting AI Solutions Nine organisation-wide challenges were consistently identified across all services and form the foundation of the programme: FOI and SAR request management Inbox and email triage Complaints management Staff Copilot and smart productivity tools Smart notes and meeting documentation Absence management automation Report generation Meeting scheduling Document redaction These cross-cutting solutions maximise benefits by addressing issues experienced universally rather than duplicating effort at service level. They also support consistency, standardisation, and quality improvement across the organisation. Technical Architecture and Requirements High-level technical requirements have been defined to inform procurement and solution design. These include: Secure, scalable, cross-council AI capabilities deployable uniformly across services
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PUBLIC Integration with core systems including Eclipse, SEEMIS, ESRI, Business World ERP, OHMS, EGRESS and Microsoft 365 via secure APIs GDPR-compliant data processing, auditability, explainability, and human-in-the-loop controls for sensitive workflows Metrics-driven operating model with transparent reporting on containment, accuracy, throughput, backlog and satisfaction Alignment with the Council’s existing cyber security, ICT and information governance architecture A full functional and non-functional requirements specification is in development to support procurement activity. Governance, Ethics and Assurance A multi-layered governance framework has been designed to ensure safe, ethical, and lawful AI deployment: AI Strategic Programme Officer Board (chaired by the Chief Executive) providing strategic oversight, financial accountability and risk management. AI Programme Delivery Team coordinating day-to-day delivery, technical deployment, and service engagement. Ethics and Assurance Officer Board (chaired by the Head of Corporate Governance) overseeing GDPR compliance, Data Protection Impact Assessments, ethical principles, fairness, transparency, and human oversight. Programme-level governance is complemented by three cross-cutting workstreams covering inbox and complaints management, smart copilot and notes, and GenAI phone/FOI/SAR automation. Regular reporting to Leadership Board and a six-monthly AI Transparency Report ensure ongoing accountability and transparency. Risk Management and Controls Risks associated with the programme - including adoption, data quality, integration complexity, and benefit realisation - have been comprehensively assessed. Mitigations include phased delivery, strong governance, human oversight, and continuous monitoring. The overall risk profile is assessed as controllable, with robust mitigation in place to allow the programme to proceed with confidence.