Major barriers to AI adoption in public estates revealed in Bellrock survey

According to new research, only 1 per cent of estates leaders across local government and healthcare believe the current facilities management model is fit for purpose. And while AI is still expected to play a big part in FM’s future, 40 per cent of professionals in the sector lack the skills to deploy it, and 65 per cent have received no AI training at all.

These key findings were revealed in a study carried out by property management industry leader Bellrock in partnership with GovNews. The company polled 285 estates professionals across healthcare and local government, with the results expose a widening gap between strategic ambition and operational readiness.

A staggering 99 per cent of estates leaders admitted that their current model is not fit for purpose, while only three per cent of local government professionals and 6 per cent of those in healthcare were very confident that their organisation’s property data is accurate, complete, and standardised enough for AI to be effective. 58 per cent (local government) and 66 per cent (healthcare) said they were “not very confident at all”.

Other highlights from the report include:

• The majority of local government and healthcare professionals believe legacy systems and outdated technologies are holding back organisations’ ability to deploy AI. 75 per cent (local government) and 80 per cent (healthcare) believe legacy technology is affecting progress “moderately”, “significantly” or “severely”.
• Just 7 per cent of local government workers and three per cent of those in healthcare fully agree organisations have the skills in-house to deploy AI effectively in estate management.
• One of the key barriers to increasing AI adoption is the quality of data that estates professionals have at their disposal. Only 3 per cent of respondents in local government and 6 per cent in healthcare say they are very confident in the quality and structure of their data.
• There is also a lack of confidence among senior leaders about using data and AI insights for strategic property decisions. Among local government and healthcare professionals, only 3 per cent said they were “very confident” while 53 per cent (local government) and 59 per cent (healthcare) said they were “not very confident” or “not confident at all”, with 28 per cent (local government) and 18 per cent (healthcare) saying they were “unsure”.
• However, there is broad support for the idea of a standard data taxonomy across each sector, allowing organisations to share data and insights. Among local government professionals, 68 per cent said they “agree” or “strongly agree” with the idea, while among healthcare professionals, the figure was 80 per cent.
• When asked whether they believe current regulation and standards for AI are adequate for property services, only 1 per cent of local government and 4 per cent of healthcare professionals answered “yes, fully adequate”, while 38 per cent (local government) and 39 per cent (healthcare) answered “not adequate” or “not at all adequate”. 43 per cent in local government and 37 per cent in healthcare said they were “unsure”.

There’s also a lack of agreement on what is holding back the adoption of AI in property services. While cost or investment constraints top the chart, a number of other factors drew a similar level of agreement, including:

• Cost or investment constraints (29 per cent and 36 per cent in local government and healthcare respectively)
• Skills and capability gaps (14 per cent and 19 per cent)
• Lack of quality data (17 per cent and 13 per cent)
• Legacy systems or infrastructure (17 per cent and 8 per cent)
• Leadership culture or resistance to change (7 per cent and 11 per cent)
• Risk or governance concerns (9 per cent and 5 per cent)

Arunn Ramadoss, Group Director of Marketing at Bellrock said: “These findings reflect the very real pressures that estates professionals in local government and healthcare are navigating every day. The ambition is there, but ambition alone can’t bridge the gap between where organisations are today and where they need to be. Along with the ambition, it’s essential to put in place the skills, data infrastructure, and resources required to achieve real change.”

Nonetheless, recent projects point to the increasing feasibility of a joined-up, AI-driven approach, including Manchester City Council’s use of Bellrock’s Concerto platform to consolidate disparate systems into a unified digital view of their estate.

Ramadoss continued: “What gives me confidence is that the sector genuinely wants to move forward, and we’re already seeing what’s possible when the right infrastructure is in place. Manchester City Council is a great example of that. For FM leaders who feel the path ahead looks daunting, I’d encourage them identify and prioritise one or two high-value quick wins now, to give stakeholders the confidence to invest in more strategic projects in the future.”