Blog: 12 May 2023 - Trowers & Hamlins, Corporate Partner

AI in local government: worth the risk?

In the space of the last few months, we have had an open letter signed by key figures in AI highlighting the 'profound risks to society and humanity'; the so-called 'Godfather of AI' resigning from Google amidst regrets over his work; and just this week, Apple co-founder Steve Wozniak giving his own warnings about the risks that AI will be used by 'bad actors'. With all these headlines,  how can local government harness the benefits of AI without causing unnecessary risks to its decision making, communities, and reputation?

The benefits of AI have long been clear, and many in local government have already successfully used AI to implement efficiencies and drive improvements in the way they provide their services. Potential uses include chat bots to answer frequently asked questions, the automation of repetitive and routine tasks allowing officers to focus on more complex and strategic decisions and tasks, and analysis of trends that can help to plan traffic management, investment in infrastructure, or more effective repairs and maintenance services.  More ambitious projects can be seen in the use of AI in social care and older people settings, collecting data from home sensors to build up a picture of an individual's routines and habits, and flagging where there has been a significant change which might be linked to deteriorating health or wellbeing.

Whilst AI can boast some impressive benefits, care does need to be taken. The use of new technologies will always come with some form of risk, whether a reputational risk (how receptive are communities to using AI?); a risk to your decision making (the common issues of biased decision making if AI is not based on 'good' data, and risks if decisions are made without meaningful human involvement); or legal and regulatory risk, for example, given the broad use of Personal Data in AI.

When advising on the risks associated with AI, a key message is to ensure that local government plans and carefully considers a range of key areas including:

• Understanding what you are trying to achieve with AI;
• Considering AI use in the context of wider strategic direction and strategy;
• Engaging with those affected and relevant stakeholders at the planning stage;
• Undertaking risk assessments and identifying how legal, technical and reputational risks can be mitigated;
• Ensuring meaningful human involvement in decision making;
• Evaluating and reassessing – what does 'success' look like?

As the Information Commissioner's Office recently commented – 'the economic and societal benefits of these innovations are only possible by maintaining the trust of the public. It is important that where local authorities use AI, it is employed in a way that is fair, in accordance with the law, and repays the trust that the public put in them when they hand their data over'.

My message to local government is this: with a sensible approach to risk and decision making, and proper planning, now is the time to take a serious look at the benefits of AI to drive transformative change in the sector.

If you would like to chat to us further about the legal and regulatory risks around the use of AI in local government, feel free to get in touch.

Author – Charlotte Clayson, Partner cclayson@trowers.com