Local authority in the north east, which has recently acknowledged ‘huge financial pressures’ and a funding gap in excess of £20m, is planning to invest in the potential of tech
Gateshead Council has revealed plans to appoint a specialist supplier to a multimillion-pound deal to serve as the organisation’s key partner for delivering reform powered by artificial intelligence technology.
The authority has published a commercial planning notice outlining its intent to put in place a five-year contract with a tech provider. The engagement, which is due to begin this summer, will be worth £6m to the chosen firm, inclusive of VAT.
“Gateshead Council is scoping requirements and looking for expressions of interest from suppliers for a multi-year contract for an AI transformation partner,” the notice says. “This partner would work with the council to provide innovative opportunities for applying AI in the daily operations of the council.”
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Companies wishing to take part in the market-engagement process are invited to visit the Open procurement portal, where they have until 23 January to download and complete a questionnaire. Gateshead then plans to arrange individual meetings with participating suppliers.
The release of the commercial notice – and its revelation of the council’s plans for heavy investment in AI – comes in the same week as the authority published a report acknowledging “huge financial pressures” and shedding light on a funding shortfall of £20.5m for the 2026/27 year.
To help address this, Gateshead has commenced consultations concerning plans for potential job cuts, as part of a proposed total of £10.6m in cost-cutting and efficiency gains. The council also intends to close the funding gap by using £4m of reserve funds and by saving £5.9m via social care-related measures.
