Tuesday 7 July 2026
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‘Significant recurring investment’ could be required for SIC’s digital innovation and AI project

A BUSINESS case could seek “significant” recurring investment in Microsoft licences and external support as Shetland Islands Council (SIC) looks to accelerate AI capability and digital innovation.

A briefing note from ICT manager James Cunningham to elected members said the case for investment will need to show how additional licensing and support can deliver measurable benefits, such as improved productivity, reduced manual processing and better access to information.

But it warns that benefits will only be realised if the SIC invests in training and governance in addition to the technology itself.

The note also says the SIC has been testing a “proof of concept” conversational AI feature for workforce development, initially focused on matters like induction.

This could take initial staff queries about training and development, with the hope being that it helps people find answers more quickly and allows colleagues to focus on more complex work.

The briefing said early results are promising, but it has shown that the AI responses depends “heavily” on the quality, structure and accessibility of the underlying information.

Digital technology and AI has been pinpointed as one way of helping Shetland Islands Council become more efficient.

Chief executive Maggie Sandison previously said increasing AI use would allow the SIC to “put people in the places where people need to interact with people”.

Earlier this year Lerwick South councillor Dennis Leask said he felt plans to embed more digital and AI services should be accelerated.

The briefing note to members, from the end of June, gave councillors an update on progress on the SIC’s digital innovation and AI project.

This project has been established as one of the council’s key ICT-led transformation projects, exploring how existing Microsoft 365 tools, AI, automation, data improvement and better digital working practices can support the delivery of SIC services.

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The note added: “A consistent theme emerging from the project is that technology adoption alone will not deliver improvement.

“The council also needs stronger digital confidence, clearer information structures, reliable data foundations, appropriate training, and governance arrangements that support safe and responsible use of AI and automation.”

It also said that given the limited internal capacity available to design, coordinate and deliver a council-wide training and adoption programme at the required pace, external support is being considered to help establish a structured programme.

There is also an idea to establish “digital champions” in the workforce who could “support colleagues, share learning, test ideas and help identify local opportunities for productivity and service improvement”.

The briefing note does warn, however, that faster deployment of AI and digital tools will increase the council’s exposure to “information governance and records management risks”.

These could include inappropriate storage of records, inconsistent use of collaboration tools, unclear ownership of information and use of AI on unsuitable data.

“It is therefore important that digital acceleration is matched by stronger governance,” the note continued.

“A proposal is expected from legal and governance colleagues to strengthen the council’s position in relation to information governance and records management. This should help ensure that innovation is delivered in a controlled, compliant and sustainable way.”

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