Artificial intelligence (AI) and smart technologies are no longer a distant possibility for local government – they’re already reshaping how councils work across Australia and New Zealand.
From service delivery to infrastructure planning, smart technologies and artificial intelligence (AI) innovations are helping solve some of the sector’s most pressing challenges. The shift is underway, and for councils; this is the time to act.
While integrating AI into council services might sound like a lofty concept, many councils are already applying it in grounded, practical ways.
Peter Nelson, Datacom’s Managing Director for SaaS Products (software-as-a-service), explained how he uses AI in his own work.
“I weave AI toolsets into much of my daily activity,” Nelson said.
“Just last week I asked Copilot for Office 365 to scan thousands of internal conversations to find top AI adoption examples across the business. It returned a concise summary and links in five seconds. That saved hours – and gathered insights I would have missed using traditional methods.”
Nelson said Datacom used its internal genAI platform to prepare for a high-stakes workshop.
“We were sent 20 pages of customer questions on a major project. We uploaded that and hundreds of supporting documents to Datacom Chat. In minutes, we had a response pack aligned to each question. Without AI, that would have taken days.”
It’s this kind of intelligent automation now entering council operations. Whether it’s summarising long reports, analysing community feedback, or managing permits and compliance, AI can slash the time spent on repetitive tasks, freeing staff for higher-value work.
From wastewater plants to customer service
The use cases are diverse. John Wiggs, Datacom’s Director of Datascape, noted councils are starting to deploy AI in everything from asset management to real-time customer support. One standout he noted, was from a New Zealand council.
“This council has rolled out 162 AI licences internally, developing tools they call ‘AI Assistants’ to automate routine tasks,” Wiggs said.
“For example, after their City Summit, they used AI to turn handwritten submissions into a full report in two days – something that would’ve taken weeks.”
Other councils are piloting AI to monitor wastewater systems, respond to emergencies with geo-tagged dashboards, and even automate pothole detection via video analysis.
It’s not just about operational wins – it’s about broader impact.
“Financial sustainability is a major issue for councils on both sides of the Tasman,” said Wiggs.
“Whether it’s rising infrastructure costs or workforce shortages in rural areas, AI can be a force multiplier.”
Smart tools for smarter people
One concern often raised is whether AI might replace people. But both Nelson and Wiggs view it as a tool for augmenting staff, not replacing them.
“In Australia, the local government workforce actually shrank by 11 per cent between 2012 and 2021, but service demand only increased,” Wiggs explained.
“AI isn’t here to replace people, it’s about helping them be more effective.”
He described how Datascape’s own platform now lets users create reports by simply typing questions in plain English – no coding or technical training needed.
“It’s about empowerment. We’re also building tools to guide users through complex workflows, like development applications, or even approve compliant cases automatically,” Wiggs said.
Privacy, trust, and community connection
As AI becomes more embedded in council systems, governance and public trust are critical.
“There’s real tension between innovation and risk,” Wiggs said. “But we can address this. At Datacom, we vet every AI tool using a framework that covers data sovereignty, security, access controls, and responsible use. Councils can apply the same standards in their own environments.”
Transparency is another key to building trust.
“Live reporting changes everything,” Nelson said. “One council uses real-time dashboards to show service level compliance. It’s reduced inquiry volumes and boosted public confidence.”
He also pointed to Moorabool Shire’s open-data initiative as an example of the tangible results.
“They publicly track performance on everything from road repairs to customer satisfaction. They’ve gone from 60 per cent to 80 per cent satisfaction in just two years.”
Where to start?
With so much potential, many councils are wondering how to begin. The answer is start small and build from there.
“Pick a clear, solvable problem with measurable impact,” Wiggs advised.
“Use off-the-shelf AI tools from vendors to run a pilot, learn what works, and build internal momentum. Most councils won’t build AI themselves – they’ll consume it through enterprise platforms.”
Nelson added that leadership is key.
“We need councils to build AI literacy at all levels,” he said.
“Leaders must understand the tools, and everyone must be supported through change – whether through training, lunch-and-learns, or internal champions.”
Above all, the call is for urgency.
“The benefits are real – we’ve seen them,” Nelson said. “And while councils may not operate with the same pace as the private sector, delays only postpone the outcomes communities desperately need.”
The future is already here
AI is not a standalone tool – it’s a shift in how councils operate, plan, and engage. For those ready to take the first step, the message is clear: the opportunity is here now.
“AI lets us go beyond human limits,” said Wiggs.
“Not to replace, but to amplify and to do things we couldn’t do before.”
It’s the smart tools – used wisely and ethically – that may just help build a smarter future.
