Digital transformation and AI can make or break Scotland’s local councils as they grapple with workforce woes, according to Audit Scotland.

Staff are councils’ most important resource and are vital in delivering and meeting Scotland’s changing and increasing needs. While the number of staff employed by councils has rise, this has not kept pace with ever-rising demand.

As well as increasing demand for services, councils are facing challenges in recruiting and retaining staff, and sickness absence rates are at a record high.

Many councils have initiatives in place to address challenges with recruitment and retaining staff, but urgent progress is needed to have robust workforce plans in place at every council. This needs to: help financial sustainability; address wellbeing; link to future skill needs and drive many more shared services and roles across the public sector.

In many cases, digital solutions are being used to support staff delivering frontline services. Audit Scotland’s report suggested that local governments be innovative in their use of technology, and build on new working practices that emerged during the pandemic.

“To achieve the change required, councils need to make good use of digital technology and use their workforces in flexible ways,” Audit Scotland’s report said.

Suggested digital solutions range from online services, mobile devices, and AI applications. While Audit Scotland found that all councils have some form of a digital strategy, these are in varying degrees of integration, with some councils falling behind. Many councils have also reported challenges in getting the necessary resources for their digital plans.

Audit Scotland found that around half of Scottish councils had introduced digital initiatives and developments which have delivered some workforce benefits, increased productivity, and improved services. These often included the use of digital champions, the use of sensors for social care, environmental monitoring in home, and even pilot programmes like using drones to deliver school meals.

Councils like Dundee City, City of Edinburgh and East Lothian are investing in digital tools, training, and infrastructure to enhance service delivery and workforce efficiency. Projects across these and other councils include developing AI chatbots, digital skills teams and smart city initiatives.

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Notably, Aberdeen City Council has partnered with Microsoft to launch an AI chatbot service for its constituents to access services and answer questions surrounding council activity.

While integration of digital technology is beneficial, Audit Scotland does point out that a skilled workforce is essential in successfully rolling out these transformations.

“We all benefit from a skilled and motivated local government workforce; staff are the most important resource that councils have. Councils must fundamentally reform how they deliver services, and Scotland’s 260,000 council workers are crucial to this,” Jennifer Henderson, member of the Accounts Commission, said.

“Councils need to align their existing workforce plans with their priorities so they can ensure their workforces are the right size and shape, and their staff have the skills they will need.

“In particular, they need to ensure workers have the digital skills necessary for the scale of changes ahead. We have seen many councils already responding to this challenge, and there are valuable opportunities for local bodies to learn from each other