Podcast: From AI ambition to £12m in bankable savings - inside the Derby City Council journey
- 4 days ago
- 3 min read
How do you turn AI potential into £12m in bankable savings? That was the central question explored in a recent TechMarketView podcast, where Craig Wentworth sat down with Martin Neale, Founder & CEO of ICS.AI, and Paul Simpson, Chief Executive of Derby City Council.
The conversation looks beyond AI hype and into something far more practical: what it really takes to move from pilots and experimentation to organisation-wide transformation - and to quantify the benefits.
Moving beyond “Pilot Purgatory”
As TechMarketView highlights, this isn’t just a story about technology. It’s about leadership, structured delivery, and the hard choices required to turn AI into measurable financial outcomes.
Derby City Council didn’t approach AI as a series of isolated experiments. Instead, it committed to a structured, organisation-wide transformation - underpinned by a clear AI Target Operating Model and strong executive sponsorship.
Paul Simpson describes AI not simply as another digital upgrade, but as a genuine step change - a transformation layered onto an already mature digital foundation. The council had already progressed with digital-first services; AI became the natural (and more powerful) successor.
Tangible results: From call deflection to multi-million savings
One of the early proof points was Derby’s AI-powered front office capability.
Before GenAI, ICS.AI had deployed NLP-based solutions across web and voice. When voice automation was introduced, the results exceeded expectations:
Over 1 million calls handled
40% call deflection rate (since increased to 56%)
Against a target of 20%
“Deflection” in this context means residents received the answer or service they needed without requiring a human operator -freeing up capacity and reducing cost.
That success has built confidence.
From there, Derby expanded into a broader GenAI transformation programme, spanning adult social care, debt management, council tax, financial assessments and more.
Critically, this wasn’t speculative. At the time of recording, Derby had reported £7.25m in savings and was well on its way to achieving £12m annually - a milestone subsequently achieved and announced.
These weren’t “paper savings.” Senior finance leaders were embedded into the programme to ensure benefits were measurable and bankable.
Over 200 use cases - prioritised for impact
A defining feature of Derby’s approach was engagement. The council ran over 40 workshops across the organisation, identifying more than 200 potential AI use cases. Rather than attempt everything at once, they prioritised based on:
Greatest financial impact
Operational feasibility
Service outcomes
This ensured momentum without overreach - and helped avoid the common trap of fragmented AI pilots with no systemic impact.
AI-first thinking in a time of reorganisation
Derby’s journey is unfolding against the backdrop of significant financial pressure in local government - and impending local government reorganisation.
Paul Simpson describes a shift in mindset: not just “digital first” — but “AI first”. Rather than retrofitting AI into legacy structures, the council now has the opportunity to design future services with AI embedded from the outset - positioning the organisation to be leaner, more resilient and fit for purpose in a new structure.
The role of leadership and partnership
A recurring theme throughout the discussion is leadership. Derby’s political and executive leadership made a conscious decision to commit - not to dip a toe in, but to move decisively.
Equally important was the supplier-customer dynamic. As Tech Market View notes, Neale and Simpson are candid about the relationship, the risks taken, and the collaborative approach required to make transformation real.
AI transformation at this scale is not a technology deployment. It is a joined-up, outcome-led programme.
From possibility to proof
For public sector leaders weighing AI investments - and for technology providers seeking to understand what clients truly need - this episode offers grounded insight from people who have delivered and can quantify the benefits.
Derby’s experience demonstrates that:
AI must be organisation-wide, not siloed
Savings must be calculated and validated
Leadership commitment is non-negotiable
Velocity matters - technology capability is evolving rapidly. Most importantly, AI ambition becomes real only when it is translated into measurable, bankable outcomes.
For anyone asking whether AI can deliver tangible financial impact in local government, Derby City Council’s journey provides a clear and compelling answer.
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