Overview of the Report
The document “State of the Sector: AI – Update (Research report, 2025)” is a publicly available research report hosted on the website of a UK local government portal. It was submitted automatically by the SCH profile routine and is listed as a Report / Study. The report is not AI‑generated and has been approved according to the tenant library‑promotion policy.
Scope and Audience
The study surveys English councils’ IT heads and senior responsible owners (SROs). A total of 104 responses were collected, representing 33 % of all councils. The findings are positioned as a comparative update to 2024 data, focusing on AI adoption, reliance on external suppliers, in‑house development capabilities, and the main barriers of skills shortages and funding constraints.
Key Findings on AI Adoption
- Adoption rates of AI tools within council services have risen, but progress remains uneven across regions.
- A substantial proportion of councils continue to depend on external suppliers for AI solutions, highlighting limited internal expertise.
- In‑house AI development is still nascent, with only a minority of councils reporting dedicated AI teams.
Skills and Funding Barriers
- Skills shortages are identified as the top obstacle to wider AI implementation, cited by the majority of respondents.
- Funding constraints follow closely, limiting the ability of councils to invest in training, recruitment, or bespoke AI projects.
- The report underscores the need for coordinated upskilling programmes and sustainable financing models to overcome these hurdles.
Sustainable Housing Relevance
Although the primary focus is on AI within local government, the findings have direct implications for sustainable housing initiatives across Europe:
- AI‑driven analytics can optimise energy consumption in public housing stock, supporting climate‑neutral goals.
- Enhanced data‑sharing platforms enable better coordination of retrofitting programmes and resource allocation.
- Addressing skills gaps will empower housing authorities to deploy AI tools that monitor building performance, predict maintenance needs, and improve tenant services.
Comparative Data Summary
- 2024 vs. 2025 AI adoption shows a modest increase of approximately 7 percentage points across surveyed councils.
- Supplier reliance decreased from 62 % to 55 % of councils, indicating a gradual shift toward internal capability building.
- Councils reporting dedicated AI teams grew from 12 % to 18 % within the one‑year period.
Recommendations for European Stakeholders
- Invest in Workforce Development – Establish cross‑border training schemes to equip public sector staff with AI and data‑science skills.
- Create Funding Mechanisms – Develop EU‑level grant programmes that target AI‑enabled sustainable housing projects.
- Promote Knowledge Exchange – Facilitate platforms where councils can share best practices, code repositories, and case studies on AI applications in housing.
- Encourage In‑House Innovation – Support pilot projects that demonstrate the value of building internal AI capacities, reducing long‑term reliance on external vendors.
Access and Further Information
The full report is accessible via the provided web link on the local government portal. It includes detailed methodology, questionnaire design, and statistical tables that elaborate on the survey results mentioned above.