The public sector’s next leap forward

The public sector is on the brink of change. Tech is moving fast, policies are evolving, and people expect more from their services. Over the next five years, we’re going to see digitisation, AI, and security at the forefront of transformation.

And this isn’t just talk. 8x8’s latest research shows exactly what’s shaping strategy for IT and customer experience leaders in local government—and the roadblocks they’re hitting..

Outdated technology

The reliance on outdated platforms and fragmented tools is creating a fundamental barrier to progress. These old platforms just aren’t built for the kind of flexibility today’s services need. If we want agile, joined up services, change has to happen. The need for integration is undeniable. A staggering 83% of local government have been tasked with increasing integration with other government deparments—and that’s only possible with flexible, cloud-based platforms that break down silos and enable seamless service delivery

AI & Automation: The engine of change

AI has moved beyond the buzzword phase—it’s now a strategic necessity. Automation is already saving time and money. AI is being used to route calls to the right teams, manage waste and recycling, report service issues and more - and with impressive outcomes. Automation is already saving serious time and money. Take Oldham Council, for example, by using 8x8 Intelligent Customer Assistant to route calls and handle routine enquiries they’ve cut calls into the contact centre by 86%, freeing up teams to focus on citizens who really need help.

Sir Keir Starmer demonstrated his commitment to change at the Global Government Forum, saying “AI isn’t something of the future, over the next hill. It’s the present. It’s already here in Britain, changing lives, a chance to turbocharge growth, create the companies of the future and radically improve our public services”.

And the sector is listening. Public sector organisations are taking action, with 59% expecting the impact and deployment of AI to be the biggest driver for change in the contact centre over the next five years, heightening the challenges already faced around compliance and security.

The largest AI-driven gains will be through workflow automation that enables the reallocation of resources to focus on more complex issues.

While adoption comes with hurdles, the most forward-thinking organisations won’t wait. They’ll experiment with simple applications such as managing refuse collections and parking requests, refining processes and leading the way towards smarter public services.

The AI revolution isn’t coming. It’s already here. And the smartest public sector teams are jumping in, using conversational AI to improve citizen interactions from the very first touchpoint.

Contact centres: The next big shake-up

Contact centres are the connection between local government and the communities they serve. From supporting vulnerable citizens to providing essential services, they are under constant pressure to deliver.

How we communicate is evolving and opening up faster and more effective ways to share information. Expectations are changing, human attention spans are reducing, and citizens want answers fast, whether by voice, chat, or self-service.

Contact centres need to catch up. Already, 28% of organisations have switched providers, and another 53% plan to in the next two years. Citizens expect a seamless service—and outdated systems just can’t keep up.

AI-powered, omnichannel, and cloud-based contact centres will define the future. Those who fail to modernise will face increasing costs, declining satisfaction, and frustrated employees and citizens alike.

And the metrics? As AI takes care of more routine tasks, call answer times will become less important, while call handle times and first-time resolution will become more significant to support a shift in focus from reactive support to proactive engagement.

Workplace transformation: The platform for success

The public sector workplace is evolving fast. Remote work, digital platforms, and seamless communication tools are no longer optional—they’re expected. Yet, 31% of local authorities report their biggest challenge to internal communications is the sheer number of platforms they are using.

Microsoft Teams adoption has surged across the public sector, proving that even traditional organisations can embrace change at speed. But technology alone won’t solve everything. Fragmented tools still slow collaboration and poor integration creates employee frustration.

Adopting a single vendor solution that brings together all your communication channels and integrates seamlessly with Microsoft Teams, CRM and business systems removes barriers, maximises existing investments, streamlines communications and encourages collaboration. Leaders need to rethink workplace technology—not as a collection of tools, but as an ecosystem that empowers teams to work smarter.

The goal isn’t just efficiency—it’s creating a connected, agile workforce. Local government doesn’t have to lag behind. It can set the standard for workplace innovation.

Security and compliance: The non-negotiable priorities

In the race for innovation, security must remain a top priority. More than a third of public sector leaders say improving cybersecurity and compliance will be their main strategic goal. And, with growing AI adoption and increased data integration, the risks are amplified.

The stakes are high. 34% of local authorities cite the security of customer data as their biggest concern in the contact centre. Citizens need to trust that their data is safe—without that trust, digital transformation will stall.

Across government, leaders must act now. The next era of public services will demand airtight protection. Organisations that prioritise security won’t just protect data—they’ll build confidence in the digital services they provide.

In this new landscape, security isn’t just an IT issue. It’s the foundation for every digital move forward.

The Road Ahead: The time to start is now

The public sector is no longer immune to disruption. Digital transformation, AI, and security challenges are rewriting the rules. The next five years will separate leaders from laggards.

AI and automation is here and its usage is going to increase.

As our workplaces evolve, local government identified Automation (73%) and AI (70%) to be the most increasing trends alongside flexible job roles and working hours.

The message is clear: it's essential to adapt, evolve and stay focused on what matters - delivering great experiences for our citizens.

Public Sector leaders can’t afford to sit back and wait, hoping for change to happen around them. They need to seize the opportunity, embrace new technologies and push the boundaries of what’s possible.

The most ambitious public sector teams will embrace change with confidence, curiosity, and a fearless drive to improve. The future isn’t waiting.

The time to change is now.

Your five-step guide to adopting AI and automation to support the evolving workplace.

Prioritising AI and automation will build a platform to deliver efficiency and consistent growth. Yet, over a third of public sector organisations do not feel they have the skills to successfully implement AI. Around the same number have concerns about the security risks it poses. Does this mean you need to make a huge investment in human resources? Choosing a partner with the right knowledge and expertise closes this gap.

Below we have provided 5 top tips to the successful adoption of AI and automation. It may not be as difficult as you think.

  1. Start Small - identify small repetitive tasks to start with and don’t try to do everything at once.
  2. Be clear about what you want to achieve and how you will measure success.
  3. Consider how the AI process needs to fit into existing processes and how you will involve humans when needed.
  4. Identify what information your process will need to use.
  5. Benefit from the knowledge of others - choose a reputable vendor to work with who has experience in implementing public sector workflows.

The time to start is now - download our guide to the technology trends shaping the government over the next five years.

Download The State of Local Gov Tech eBook