AI plan unveiled to cut council tenant rent debts

Stoke-on-Trent City Council plans to adopt an AI system costing £210,000 annually to identify tenants at risk of rent arrears, aiming to save £430,000 through better debt management and revenue collection. The proposal, set for approval on May 19, follows criticism of the current housing management system as 'no longer fit for purpose,' though data protection concerns remain unresolved." "article": "Stoke-on-Trent City Council has proposed using artificial intelligence to reduce rent arrears among its 18,000 tenants. The AI system would analyze financial hardship risks to enable earlier interventions, with an expected annual cost of £210,000 but projected savings of £430,000 through improved revenue collection and reduced bad debt exposure. The plan will be discussed by cabinet members on May 19, following a report calling the current housing management system 'no longer fit for purpose.' Councillor Chris Robinson, the cabinet member for housing, supports the AI solution, stating it will benefit both tenants and the council by increasing efficiency and reducing debt risks. Rent arrears peaked at 3.06% between 2023 and 2024 before slightly declining, prompting the need for proactive measures. The council emphasizes no job losses are expected, as staff will focus on high-risk cases instead of routine debt tracking. Data protection remains a key concern, as the AI will process tenants' personal information. The council must also determine whether existing tenant data will be used to train the system, requiring further legal and ethical review. The proposal aligns with broader efforts to modernize local government services using technology, though implementation will depend on addressing privacy risks and securing approval.