Agenda item

To receive a report from the Head of Head of Digital Transformation and Customer Engagement on the new Artificial Intelligence (AI) Policy.

The Cabinet had before it a report * from the Head of Digital Transformation and Customer Engagement on the Artificial Intelligence (AI) Policy.

The Cabinet Member for Quality of Living, Equalities and Public Health outlined the contents of the report with particular reference to the following:

• The rapid emergence of Generative AI technologies, such as Chat GPT, Gemini, and Microsoft Co-pilot had marked a profound shift in the way information was created, analysed, and consumed.
• These tools present significant opportunities for improved service delivery, enhanced communication, and greater efficiency. However, they also introduced a new category of risk that must be proactively managed.
• This Council had a clear framework to govern the use of AI responsibly and ethically across the organisation. At present, the Council had no formal policy in place, leaving a gap in guidance for staff and Members who may be using or exploring AI tools.
• The policy aimed to:

Ø  To safeguard Council data and services, by prohibiting the use of confidential or personal data in external Generative AI tools. This was particularly important to the Council where it held and processed vast amounts of very sensitive data every day.  By using the Council's licensed Copilot tool for sensitive data where authorised to do so to ensure the data stays within the Council’s control;

Ø  To enhance transparency and accountability, especially where AI tools were used to generate content or influence decision-making;

Ø  To ensure human oversight remained central—no AI tool should independently make decisions about residents or services without a human in the loop;

Ø  To identify roles and responsibilities for AI policy compliance, including the Head of Digital Services & Customer Engagement, line managers, the ITIG Board, and others;

Ø  And to provide clear guidance for acceptable use, training requirements, and risk mitigation, particularly as AI tools became embedded into more software platforms.

• This policy aligned with the Council’s Corporate Plan commitments to digital transformation and service excellence. It demonstrated the Council’s readiness to engage with innovation—not passively, but safely, ethically, and proactively.
• Staff would receive appropriate training on governance, ethics, and risk management in relation to AI.
• A comprehensive risk review would be undertaken and added to the Councils risk register.  The legal implications of inappropriate or unauthorised use of AI may expose the Council to risks such as data breaches, copyright infringement, or biased decision-making. Procurement procedures would be updated to include safe routes for acquiring AI-enabled tools.
• The Council would ensure that Equalities Impact Assessments were completed where AI was used to support or automate service delivery.
• It was important to stress that the policy included a shorter than usual review period. This was by design—reflecting the pace at which AI capabilities, use cases, and legal considerations were developing. Delegated authority to the Deputy Chief Executive and SIRO would allow necessary amendments to be made swiftly, with full oversight through the ITIG Board.
• While embracing the opportunities presented by AI, the Council must also recognise there were concerns as well:  AI systems, especially generative models, carry risks of bias and misinformation both from human sources and through hallucinations, and they had a high environmental impact due to their energy use and supply chains.

Discussion took place with regards to:

• Concerns around mitigating the risks and being proactive enough.
• Limit to paid services with Artificial Intelligence (AI) this may narrow the benefits and limit the staff.
• How does the Council know we have the right AI for all departments?
• How would Members know the training had been suitable for the staff in their role?
• Would the policy come back to Cabinet in 6 months as it develops?

RESOLVED that:

• That Cabinet recommend to Full Council the approval of the draft AI policy.

• That Cabinet approve the delegation of the AI Policy to the Deputy Chief Executive and Senior Information Risk Owner (SIRO), in consultation with the IT & Information Governance (ITIG) Board, due to the necessity for ongoing review of policy and guidance in response to the rapid advancements in technology.

(Proposed by Cllr D Wulff and Seconded by Cllr S Clist)

Reason for Decision:

The AI policy supports the delivery of the Council’s commitment to improve and transform its services and ensure the public had a good understanding of Council services and that they were satisfied that the services were efficient and effective.

Note: *Report previously circulated.