Derby City Council

DERBY CITY COUNCIL'S INNOVATIVE JOURNEY

Derby City Council and Derby Homes embarked on an innovative journey to redefine their resident engagement strategy. Setting a benchmark for UK councils, they have seamlessly integrated Artificial Intelligence (AI) into their customer service operations. By integrating phone-based AI into their main switchboard, the council has not only achieved impressive results but set a precedent in public service excellence.

A successful first phase with phone-based AI gave the Council confidence in embracing AI technology and they are now working on extending these capabilities across additional Council services, prioritising three critical areas – Adult Social Care, Customer Services and Debt Management. This wider AI Transformation expansion is projected to generate substantial financial savings of £12million per year once fully implemented.

THE CHALLENGE

The financial landscape for councils is extremely challenging. Faced with a £14 million funding gap, increasing demand and escalating costs, Derby City Council recognised that services needed to transform to meet customer demand and be cost-effective.

This called for innovation in managing customer enquiries. Recognising that over 60% of resident interactions were via phone, the Council aimed to streamline this channel while maintaining service quality and boosting operational efficiency.

Andy Brammall, Director of Digital & Physical Infrastructure and Customer Engagement at Derby City Council commented,

“It quickly became clear that AI had the potential to dramatically streamline our customer service operation. We started first with an AI-powered website assistant and followed by supplementing our main switchboard with phone-based AI”.

PHONE-BASED AI SOLUTION

In partnership with ICS.AI, leaders in public sector AI transformation in the UK, Derby City Council introduced two AI assistants - Darcie to help with council services, and Ali to help Derby Homes customers with housing queries.

These AI assistants employ conversational AI and advanced natural language processing to provide a user-friendly round-the-clock service, capable of handling enquiries about a wide range of council services, in a human-like way.

Initially introduced on the websites for both organisations using ICS.AI’s SMART: Chat solution, Derby City Council then began to use the digital assistants as the first point of contact on their telephone switchboards with SMART: Phone – the first in the sector to do so with a full local government language model.

As Andy Brammall describes: “Our new AI assistants not only allow residents access to a range of council services and information around the clock and across multiple channels, but by automating routine tasks they also free up time for our colleagues to focus on more complex queries which need a human conversation. This ultimately aims to manage our customers’ enquiries more effectively, providing a more personalised response when required, and increased levels of resident satisfaction”

Utilising ICS.AI’s unique local government language model, Darcie and Ali are pre-trained in over 1,100 council and housing services, ranging from council tax, parking, and benefits to waste management queries.

As well as answering queries, the AI solution can facilitate access to over 40 different council departments. While the technology is advanced, there’s always a human in the loop to assist with complex queries or for residents who prefer human interaction. Brammall emphasises, “We understand not everyone will transact with the council digitally. For those who choose not to, speaking to a human via telephone or face-to-face remains an option during business hours and is always supported”.

IMPACT & RESULTS

This AI-driven transformation is showing impressive results. Within the first year of implementation, Darcie and Ali managed over 500,000 phone calls and another 57,000 interactions through the council’s website, addressing more than 1 million individual questions. Over 10,000 of these queries were addressed on weekends, outside of regular business hours, underscoring the round-the-clock advantage of AI support.

The AI assistants surpassed expectations, achieving an incredible 46% deflection rate from human advisors, more than doubling the initial target of 21%. The efficiency has translated to tangible financial benefits, within 3 months of going live they already achieved savings of over £200,000 against the council’s budget plan.

Derby City Council leadership say the new AI digital assistants have been a huge success so far and their presence offers “big opportunities” to make more cash savings in the future. Former Leader of Derby City Council, Baggy Shanker, shared: “AI solutions have the potential to help councils protect the services we deliver to residents, while contributing to the financial challenges faced by the local government sector. The £200,000 savings delivered so far by our introduction of AI, through Darcie and Ali, are the tip of the iceberg as more becomes possible, in a world where cutting services year-on-year is unsustainable.”

500K

calls handled within the first year of implementation

1M+

questions answered

since launch

46%

deflection rate from human advisors

200K

of savings against the council's budget plan

INSPIRED BY DERBY'S SUCCESS?

Take the first step towards transforming your council's customer service operations with our AI Customer Service Assessment. Inspired by Derby City Council's success with SMART: Phone, our AI Customer Service Assessment is designed to help councils effectively evaluate the benefits of implementing AI in their customer service operations. To find out more about the assessment and register for the next introduction workshop visit the AI Customer Service Assessment page here.

DERBY’S NEXT STEPS IN THEIR AI TRANSFORMATION JOURNEY

Following a successful first phase with digital assistants Darcie and Ali, the Council is now working on extending these AI capabilities. This next step in their AI Transformation journey included a series of discovery workshops conducted by ICS.AI across the entire council, which identified 261 potential AI use cases, of which 54 were prioritised, focusing initially on three critical areas: Adult Social Care, Customer Services, and Income Managment.

Adult Social Care: AI tools will assist in reviewing care packages, ensuring individuals receive appropriate support levels at home.

Customer Services: The expansion of Darcie and Ali into generative AI copilots will enhance the quality and nuance of interactions with residents, facilitating more complex communications.

Debt Recovery: AI will improve the efficiency of gathering and analysing data, aiding the Council in debt management and revenue collection.

The implementation will occur in two phases. The initial phase targets the critical service areas, setting the foundation for broader application. The second phase aims to expand the use of AI technologies across other council services, further integrating AI to enhance overall service delivery.

FINANCIAL AND OPERATIONAL BENEFITS

The expanded use of AI is projected to generate substantial financial savings, with an expected £3.9 million during the 2024/25 financial year, escalating to at least £12.25 million annually upon full implementation.

With the SMART: platform's advanced capabilities, Derby City Council is not only optimising current operational workflows but is also setting the stage for future enhancements that promise even greater efficiency and effectiveness in public service delivery.

AI ASSISTANCE IN TIMES OF CRISIS

In the face of unprecedented flooding caused by storm Babet in Derby, Derby City Council's innovative use of AI assistants, Darcie and Ali, proved to be invaluable. Serving as the digital front door for both the Council and Derby Homes, during the crisis they facilitated nearly 300 flood-related queries, providing residents with critical information on flooding, sandbags, safety concerns, evacuations, compensation, and road closures.

Collaborating swiftly with ICS.AI, the Council was able to update the AI assistants' welcome messages in real-time, directing residents to essential resources and support. This rapid response and the valuable data collected have laid the groundwork for developing a comprehensive emergency response skill within the AI, ensuring even more robust support in future crises. This case exemplifies the crucial role AI can play in disaster response, enhancing the community's resilience and the Council's ability to effectively serve its residents in times of need.

WHY DID THEY CHOOSE ICS.AI

The Council partnered with ICS.AI and leveraged their SMART AI platform for this transformation. As Brammall comments, they chose ICS.AI’s SMART AI platform for several reasons;

“Their strong reputation and proven experience in the local government sector reassured us of their capabilities. They offered a “human parity” council AI language model that could be quickly deployed, and we were confident in their performance and proven commitment to innovation in the phone channel. Above all, what really appealed to us was their ambition to work collaboratively”

Martin Neale, CEO at ICS.AI concluded, “Derby City Council’s commitment to innovation was critical to successfully deploying one of the most sophisticated AI engagement solutions in the public sector. This significant development demonstrates the Council’s leadership in the sector. We’re delighted to continue supporting them in developing their new AI-driven strategy, which I can see is already making a substantial impact on their contact centre”

WATCH OUR DERBY CITY COUNCIL SHOWCASE WEBINAR

Find out more about Derby City Council’s AI journey in our latest webinar, where our panel of experts from across the Council and ICS.AI talked about the AI Transformation approach, business case justification, stakeholder engagement process and breaking down key challenges.

Hear from Paul Simpson on why Derby City Council decided to embrace AI innovation.
Learn about Derby City Council’s AI transformation journey and future roadmap.
Discover the process for identifying practical use cases for AI within the council.
Discover the power of conversational AI from ICS.AI's own CEO, Martin Neale.

Watch the webinar

TRANSFORM YOUR ENGAGEMENT WITH AI

Contact us to start your AI Transformation! Explore the SMART AI Platform's capabilities, receive live demonstrations, detailed pricing, and assistance in building an ROI business case calculator.

THE BENEFITS OF PHONE-BASED AI

Phone-based AI offers numerous advantages. It can streamline operations, reducing the calls directed to human operators and shortening waiting times. This efficiency frees up staff time to focus on complex queries, improving overall resident satisfaction.

The AI system offers 24/7 support, effectively managing high demand periods. By automating high-volume and routine calls, the system not only enhances the caller experience but also presents opportunities for operational cost savings and staff redeployment to other crucial tasks.

SMART: PLATFORM - THE LARGEST AI LANGUAGE MODEL IN THE UK

Like our other public facing AI assistants, Darcie and Ali are custom built using our proprietary software. It's ready to work on day one with a pre-trained understanding of user questions across local government services. Thanks to its patent-pending SMART: Mesh learning it is constantly improving. Drawing from its own feedback and other assistants on the same SMART: Mesh, our assistants provide instant value with robust analytics to help your organisation grow.