While much of the enterprise world is still in an experimental phase with AI—grappling with long tech refresh cycles, security concerns, and questions around ROI (see the AI Purgatory article recently published)—parts of the public sector in the UK are quietly making real, measurable progress.
We sat down with Katie Kemshell Head of Public Sector for Unified Communications at Charterhouse, a technology partner working across public sector verticals like local government, and her customer, Liam Abbott, from B&NES (Bath & North East Somerset Council).
Kemshell’s insights reveal that, far from being stuck in bureaucratic slow lanes, some public institutions are embracing AI to drive tangible benefits, improve efficiency, and enhance services for citizens.
Local Government Takes the Lead
If there’s a standout success story in the public sector’s adoption of AI, it’s local government. Despite extreme budget pressures—one in four UK councils is currently facing potential bankruptcy—many have seen AI not as a luxury but as a critical tool for survival and service improvement.
“The biggest surprise is that local government is our fastest growing vertical,” Kemshell explains. “Even though they’re facing financial crises, councils invest in AI, particularly contact center transformations.
The efficiencies they are gaining directly impact (positively) their ability to serve residents.”
These AI-driven upgrades include advanced features like automated summarization, sentiment analysis, and conversational AI tools that help contact center agents better support the public. And crucially, it’s not about slashing jobs.
B&NES is undergoing a sweeping transformation of its contact center operations, supported by Charterhouse and powered by Zoom.
At the heart of the project? Centralization, efficiency, and resident experience.
Liam Abbott, Head of Digital and Customer Experience at B&NES, commented, “We had 82 different telephone numbers listed on our website—four just for housing options alone. “We’re moving to one number for the whole council. That’s only possible because AI allows us to support generalist agents with deep knowledge access.”
“It’s not about headcount reduction. It’s about freeing specialists like planning officers and social workers to do more high-value work. Why should a planning expert spend time telling someone how to submit a form when a generalist, backed by AI, can handle it instantly?”
Proving ROI
One of the common grumbles I hear from the enterprise space is that the ROI from AI deployments is unclear. With a strategy to not reduce headcount, I had to ask the question—where are the money savings here?
While hard savings are coming, the early ROI is mostly about cost avoidance. By increasing internal efficiency, you can prevent the need for expensive agency hires or external contractors.
“We’re not going to cut our planning officers—we need them,“ Liam says. “But now they can focus on processing applications, not fielding basic queries. That’s a huge time win.“
Abbot says Zoom has also been surprisingly cost-effective.
“We’re paying an incredibly low price for Zoom, and it includes all the AI we need. Some other vendors were charging way more just for AI capabilities. That pricing model made our decision much easier.”
This philosophy is catching on. Councils like Derby are already running fully AI-powered voice bots. Theirs is called “Darcy,” and it is handling up to 50% of their inbound calls without human agents—something B&NES plans to emulate in the coming year.
“We’re learning from councils ahead of us,“ Liam says. “But we’re moving quickly and we’re committed. The benefits we expect in the next 6–9 months will be game-changing.“
Healthcare – Focused on the Frontline
In contrast, AI adoption in healthcare remains more constrained, largely due to funding realities.
“In healthcare, we’re not seeing many new tenders for tech upgrades,“ Kemshell notes. “The money is going straight to the frontline. IT budgets are being squeezed hard, and AI investment focuses more on clinical tools and robotics than communications tech.“
The NHS, for example, is burdened by legacy infrastructure and administrative bottlenecks, but there’s limited capacity to invest in systems that could address those inefficiencies. As a result, despite a clear use case, AI adoption in unified communications (UC) is lagging in this area.
Education – A Sector in Flux
Education presents another complex picture. With a drop in international student numbers and ongoing budget cuts, UK universities are also under financial strain.
“Spending is reducing across higher education. They’re facing potential job losses—10,000 roles reportedly might go this year—so the sector is nervous. But there’s interest,“ Kenshell says.
AI could support everything from student well-being to improving call handling during high-pressure periods like clearing. However, widespread adoption remains tentative. “We’re currently trying to determine how much genuine appetite there is for AI investments in the space.”
Which Verticals are Next?
Charterhouse has also begun exploring AI’s role in the nonprofit space. “It’s early days, but we’re testing the waters. Ultimately, we’re looking at which verticals will embrace AI by FY2026, and local government is leading that charge.”
Charterhouse’s AI events have seen strong engagement, particularly from local authorities. “We call them AI Summits, and they’re always packed,“ Kemshell adds. We’ve got one in education this May and a big healthcare summit in July in Birmingham. Everyone from Microsoft to Zoom to 8×8 will be there.”
For those trying to understand AI’s real-world impact, bridging the gap between vendor messaging and practical implementation is key.
“That’s where the partners come in—we see how these projects roll out,“ Kemshell says. “The challenge now is stitching together the promises of the tech world with the realities of the public sector and other verticals we operate in.”
And perhaps the most important takeaway?
In local government, AI isn’t a buzzword—it’s a lifeline. Councils are proving that with the right approach, AI can deliver real savings, improve services, and improve life for the people they serve.
