Scottish councils are turning to artificial intelligence (AI) to slash costs as town halls struggle to plug a £562m financial blackhole by the end of next year.
Local authorities across the country have already raided their financial reserves, hiked council tax and shuttered hundreds of public buildings in recent years in a desperate bid to make ends meet.
Analysis by the BBC Shared Data Unit found that 28 out of 32 councils reported needing to fill a financial black hole by the end of the 27/28 financial year - despite already making sweeping savings over the last 12 months.
AI adoption in Scottish councils
At least two local authorities in Scotland are among the dozens across the UK planning to use AI to streamline services and cut costs.
Dumfries and Galloway Council is pursuing a "digital redesign programme" through AI to slash costs by £750,000 of savings and cut 24 jobs over the next three years, while Angus Council is rolling out the use of AI chatbots as well as purchasing 150 Microsoft Copilot licences to support staff and automate tasks.
But local government experts warned AI is not the "silver bullet" to save a system from "the brink of collapse".
Jonathan Carr West, chief executive of the Local Government Information Unit (LGIU), said: "We have seen some savings being made from AI, but they are, to be frank, pretty marginal compared to the scale of the problem."
Council tax rises and budget pressures
All local authorities have already imposed council tax rises - ranging from 10 per cent in Aberdeenshire and Moray to four per cent in Edinburgh.
But the capital still faces making £26m savings by 2028, second largest total in Scotland behind Aberdeen at £33m.
Councillor Mandy Watt, convener of the city's finance committee, said: "Edinburgh has the lowest government funding per person of any council in Scotland, which poses a real challenge for setting our budget each year, when we are faced with major decisions to agree the council’s spending priorities.
"This year’s budget reinforces our commitment to tackling poverty, prioritising prevention and protecting frontline services for those most in need of our support – all while keeping the increase in council tax to the lowest in the country at four per cent.
"Officers have produced an innovative budget that prioritises the services that most matter to the people of Edinburgh – from investing in our roads, pavements and parks to caring for our youngest, oldest and most vulnerable residents. This is alongside a record £1.6 billion investment in housing and significant sums for education and health and social care services."
Scottish Government response
A Scottish Government spokesman said: "This year’s Budget provides Scotland’s councils with record funding of almost £15.7billion, building on continued real terms increases in recent years.
"The Scottish Government recognises the pressures facing local authorities, such as the UK Government’s increase in employer national insurance contributions which are impacting the finances councils have available for frontline spending."
