Whether agent-based AI can ease the burden on local government services depends largely on the organisational, technical and legal framework. This is shown by a recent study „Agent-based AI in local government practice“ the Agora Digital Transformation.

The team of authors monitored the introduction of an AI-supported housing benefit solution in Nettetal over a period of several months and examined other local authority projects. The systems primarily assist with preparatory tasks, such as sorting incoming post and checking applications and supporting documents. In all the cases examined, the decision on whether to grant the benefit remained with the case workers.

Employees reported that certain tasks had become less burdensome. However, checking the AI’s results could also entail additional work. There is as yet no conclusive evidence of cost savings in this area. Claims by private providers of time savings of up to 75 per cent are often not backed up by verifiable evidence. A lack of interfaces and data discontinuities could negate any benefits achieved. The study therefore recommends first assessing the necessity of using AI and reviewing administrative processes before implementation. Added to this are uncertainties regarding the application of the AI Regulation, data protection and the calculation of running costs.

„Before introducing AI, organisations should set out in binding terms what it will be used for, who will review its results, and what will happen in the event of errors,“ explains Rechtsanwalt Dr Johannes Held. „Equally important is the training of staff – which the AI Regulation requires in any case – and clarifying at an early stage whether, and to what extent, the staff council is to be involved. A service agreement can be used to set out the purposes and limits of use.“

„The study shows just how much the benefits of AI depend on its ability to integrate with existing administrative software,“ explains lawyer Anuschka Siegers. „Local authorities should therefore specify, right from the procurement stage, which interfaces and data formats must be supported and who will ensure the integration.“