AI customer service software boosted by Government and OpenAI initiative

AI customer service software is at the forefront of the UK government’s digital transformation efforts, thanks to a recent partnership with OpenAI that explores how AI can enhance public services. As interest in this technology grows, concerns about data privacy and UK sovereignty are prompting local authorities to seek out trustworthy, homegrown solutions. Tools like AI chatbots for customer service, conversational AI, and customised website chatbots offer public sector organisations a compliant, UK-hosted alternative to international tech platforms.

Table of Contents

1. What is AI Customer Service Software?
2. Click4Assistance Customer Examples
3. What is the OpenAI/GovUK agreement about?
4. Who are OpenAI?
5. UK Government Plans
6. Why should we be concerned about AI and our data?
7. Summary

What is AI Customer Service Software?

In today’s digital-first world, speed, convenience, and personalised service define a strong customer experience. One of the most transformative tools driving this evolution is AI customer service software, particularly in the form of chatbots.

AI customer service software uses artificial intelligence to assist, automate, or enhance customer interactions. When integrated into local authority websites, chatbots can deliver real-time responses, resolve queries instantly, and escalate complex issues to human advisors when needed.

These systems use technologies such as:

• Natural Language Processing (NLP): to understand customer intent and context
• Machine Learning: to improve responses over time based on interactions
• Automation Rukes: to route messages, identify issues, and trigger specific workflows

How Live Chat with AI Works

Traditional live chat involves human advisors responding to customer messages. AI-enhanced live chat blends this with intelligent automation. AI chatbots handle routine queries, such as refuse collection queries, simple payment queries, or FAQs. This enables the human advisors to focus on more complex issues.

If a bot can't solve a problem, it passes the conversation to a live advisor with all the relevant context, creating a seamless handoff. This combination ensures high availability and a consistently positive customer experience.

• 24/7 Availability - Offering always-available live chat support through websites allows residents to find information, complete tasks, or resolve queries outside standard office hours, reducing the demand on in-person or phone-based services.
• Scalability - Efficiently manage thousands of simultaneous conversations without compromising quality or response times ensuring local authorities and government departments can maintain a consistent and high-quality service, even during periods of exceptionally high public demand.
• Cost Efficiency - By automating high-volume, repetitive enquiries (such as bin collections, council tax, or form-filling guidance), AI liberates customer service teams to concentrate on more complex, sensitive, or high-priority cases that require human judgement.
• Faster Response Times - Improve first contact resolution metrics across all departments. AI customer service software enables instant replies to common queries, reducing wait times and preventing the requirement for secondary contact.
• Personalisation - Integrate with CRM data to access records and service history to provide relevant, context-aware answers based on each individual’s needs. This creates a more personalised experience, improving engagement and satisfaction across public services.

Click4Assistance Customer Examples

Buckinghamshire County Council initially introduced live chat on their school admissions pages with the goal of streamlining processes and alleviating pressure on their internal teams during high-demand periods. By providing parents and carers with instant access to support, the council was able to reduce inbound calls, improve response times, and deliver a more user-friendly experience, especially during the busy admissions cycle.

Encouraged by its success, Buckinghamshire expanded the live chat functionality to include the Libraries service, allowing residents to engage easily with library staff. The platform not only enhanced efficiency across departments but also contributed to broader digital transformation goals.

Live chat has since become a critical component of the council’s disaster recovery strategy. In the event of a disruption to phone lines or email services, the real-time nature of live chat ensures that communication with residents remains open and uninterrupted. This proactive approach demonstrates how digital tools like AI customer service software can strengthen operational resilience while maintaining high standards of public service delivery.

Salford City Council, headquartered at Swinton Civic Centre with additional offices in Eccles, has taken a progressive approach to digital transformation. Working in part within a public-private partnership with Capita and Galliford Try, the council sought to streamline operations and improve resident engagement. In 2016, after assessing platform capabilities, data security, and alignment with their digital strategy, the council implemented a live chat solution from Click4Assistance. The platform has enabled real-time support for residents using digital services, reducing pressure on phone lines and increasing accessibility across departments.

Thanks to the flexibility of the Click4Assistance solution, Salford has also ensured full GDPR compliance by dynamically adjusting the information collected based on user consent. If a visitor agrees to the council’s data policy, account-specific fields are made available to gather more detailed information. If consent is not given, the system limits data collection to just a first name and enquiry type which is information that is not classed as personally identifiable. This intelligent design balances regulatory compliance with a smooth user experience, allowing Salford to maintain public trust while enhancing the efficiency of its digital services.

What is the OpenAI/GovUK agreement about?

In an unprecedented move toward modernising public services, the UK government has announced a partnership with OpenAI (the company behind ChatGPT) to explore the use of artificial intelligence across a range of sectors, including education, justice, defence, and national security.

The agreement is not a legally binding deal, rather it has been presented as a statement of intent. Signed by OpenAI and the Department for Science, Innovation and Technology, it outlines plans to share data, develop AI safeguards, and explore investment in infrastructure, such as data centres. As a result, OpenAI will be expanding its presence in London, where it currently employs over 100 people.

Technology Secretary Peter Kyle said the partnership marks a key milestone in the UK’s digital transformation, stating that “AI will be fundamental in driving change and economic growth.”

Not everyone is so optimistic though. Martha Dark, co-executive Director of Foxglove, (a digital rights campaign group) called the agreement “hopelessly vague”, stating concerns over allowing OpenAI access to the “treasure trove of public data”.

View the full BBC report.

Who are OpenAI?

Originally founded in December 2015 as a non profit company, OpenAI’s aim was to “advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return”.

This declaration from their mission statement reveals the founding philosophy of OpenAI, and reflects the collective principles agreed by its founders, who included Elon Musk, Sam Altman, Ilya Sutskever and Greg Brockman (amongst others).

The first round of funding amounted to $1 billion, raised from financial backers including Tesla, Infosys, Amazon, Linked In founder Reid Hoffman, venture capitalist Peter Thiel, and of course, current OpenAI CEO Sam Altman. However, it is still unclear who contributed what.

Sam Altman took over as CEO in 2019, and pivoted the organisation to Large Language Models, leading to the development of ChatGPT. (Click4Assisatnce used ChatGPT to power Arti, the chat bot within our AI customer service software, but more on that later…) Following the recognition of the vast amount of funding required to develop such a powerful AI system, Altman led the transition to a capped profit model. This allowed investors to potentially earn a return on their investment, but only up to a certain cap, with any remaining profits being reinvested to further the development. OpenAI LP was created (the new for-profit division) encouraging investment from Microsoft, estimated at a value of $10 billion.

As of July 2025, OpenAI continues to state that it has no intention of going public. However, if the company's valuation continues to rise and it seeks additional capital, an initial public offering (IPO) could eventually become a necessary step.

What are the UK Governments plans?

In January 2025, Sir Keir Starmer, UK Prime Minister, announced a UK AI Opportunities Action Plan.

AI is already used to support the NHS, including use in UK hospitals to provide quicker cancer diagnosis, even before they are detectable by the human eye. However, the new action plan will take this even further. The Prime Minister stated “Artificial Intelligence presents a vast potential for rejuvenating UK public services”. AI advisor Matt Clifford created the UK action Plan as requested by the UK government and his 50 recommendations are currently being implemented.

Includes within the government's proposals are:

• Several "AI Growth Zones" around the UK will be created, involving big building projects and new jobs.
• AI will be fed through cameras around the country to inspect roads and spot potholes that need fixing.
• Teachers and small business owners were highlighted as two groups that could start using AI for things like faster planning and record-keeping. Around 3,000 teachers are already including AI powered solutions within their teaching methods.
• AI will be used by the public sector to enable its workers to spend less time doing admin and more time delivering services.

Click4Assistance is already providing live chat software and AI customer service software to central government and local authorities throughout the UK. From Salford to Suffolk, Inverclyde to Dorset, whether it’s a District, County, City or Non-Metropolitan council Click4Assistance has a conversational chatbot to assist.

How are Local Authorities using AI Customer Service Software?

Here are just a few use cases within government departments:

• Council Tax Enquiries - Help citizens check their account balances, report a change of circumstances , or record a change of address quickly and easily. Chatbots can guide users step-by-step, reducing pressure on call centres and ensuring faster resolution.
• Benefits and Housing - Automate responses to common eligibility questions, explain how to submit supporting documents, and provide updates on the status of benefit or housing applications. This helps streamline services and ensures residents receive speedy, accurate information.
• Waste and Recycling - Instantly answer queries about bin collection schedules, report missed collections and help citizens apply for permits or bulk waste pickups. These fast responses reduce unnecessary calls and improve service satisfaction.
• Planning and Licensing - Deliver customised guidance based on property types, business sectors, or licensing categories. The chatbot can point users to relevant resources and help them understand the process before contacting staff.
• Health and Social Care - Assist vulnerable users by guiding them to appropriate support services or assessment tools based on their needs. The bot can escalate complex or sensitive cases to trained human advisors, ensuring care is never compromised.
• Education and School Admissions - Handle high volumes of enquiries during key application windows by answering frequently asked questions around deadlines, criteria, and required documentation. This improves the user experience and allows staff to focus on more complex cases.

Notably, Peterborough Council recently embarked on a project to ‘download’ an experienced member of staff into an AI chatbot. The BBC reported the worker, Geraldine Jinks, was often counted on by her colleagues to share her 35 years of experience as a therapy practitioner supporting adult social care. While Geraldine was happy to help, it took her away from her pressing tasks. A forward-thinking manager within the team recognised the potential of AI and started developing a technological solution.

Instead of a customer facing Bot, this project centred around a back-end solution to support staff and share Geraldine’s vast knowledge on the subject.

The tech team worked closely with Ms Jinks to train the AI tool with questions and answers that occurred on a daily basis. They even named the solution ‘Hey Geraldine’.

The council's cabinet member for adults and health Shabina Qayyum also works as a GP, and had this to say:

"I know how incredibly frustrating it can be for patients who are delayed in returning to their home after a stay in hospital. Delays also have an impact on the finances of both the NHS and local authorities.

The use of technology-assisted care like smart devices and home activity sensors can really help people to regain their independence quickly. The Hey Geraldine chatbot helps staff to put these technologies in place with all the knowledge and care that Geraldine herself would use."

Should we be concerned about AI and our data?

Even with the advances around compliance in 2025, there are valid concerns about AI and the use of UK data, particularly when it comes to privacy, security, accountability, and transparency. While AI can deliver enormous benefits, such as improving public service delivery, streamlining operations, and enhancing citizen engagement, there are serious risks and responsibilities to consider.

Here are a few key areas for consideration:

• Data Privacy and Consent
  

  AI systems often require large volumes of data to function effectively. If that data includes personal or sensitive information, there's a risk it could be misused or mishandled. In the UK, this raises questions around GDPR compliance, especially regarding how data is collected, stored, and used and whether data subjects have agreed to that use.

• Public Trust and Transparency
  

  If AI models are trained on public sector data without sufficient transparency, citizens may lose trust in how their information is being used. For example, partnerships like the one between the UK Government and OpenAI (as reported by the BBC) raise concerns about whether commercial AI providers could use public data to train private systems without clear oversight or benefit to the public.

• Data Sovereignty
  

  There's also the issue of data leaving UK jurisdiction. If AI partners are based overseas or use global infrastructure, UK data could be subject to foreign laws or lack protection under UK regulatory standards.

• Ethical Use and Bias
  

  AI systems can unintentionally apply bias in datasets, particularly dangerous when applied to sensitive areas like policing, healthcare, or social services. This can lead to unfair outcomes or discrimination.

• Accountability and Oversight
  

  When AI systems make or influence decisions, it's vital to have human oversight. We need clear accountability and clarity around who is responsible if the AI provides incorrect information.

  Ultimately OpenAI is an American owned entity, and it is disappointing to see UK government spending going outside of the UK. Also, the enormous commercial value of the UK public’s data available to OpenAI cannot be ignored.

The government release transparency data regarding relationships, so we are able to see that Peter Kyle dined with Sam Altman in both March and April of this year, shortly before the Memorandum of Understanding was signed. Kyle defended this stating he has to deal with "global companies which are innovating on a scale the British state cannot match". However back in January 2025 he told the BBC there was no reason why the UK could not create tech companies on the same scale as Google, Amazon and Apple.

UKAI (a trade body that represents British AI businesses) said the proposals focus too much on big tech.

Peter Flagg, COO of UKAI said:

“AI innovation spans industries, from small enterprises to non-tech sectors, all driving the new industrial revolution. It's time the government recognised this broader definition and tapped into the full potential of AI across the UK."

OpenAI is an American-owned company, and it’s understandable that there is unease about UK public money flowing outside the country, especially when the UK’s own AI ecosystem is still maturing. Equally significant is the commercial value of the UK public’s data that may become accessible through this partnership. Transparency data released by the government shows that Technology Secretary Peter Kyle met with OpenAI CEO Sam Altman over dinner in both March and April of this year, shortly before the Memorandum of Understanding was signed. Kyle has defended the engagement by arguing that the UK must engage with “global companies which are innovating on a scale the British state cannot match.” Yet only months earlier, in January 2025, he told the BBC that there was no fundamental reason why the UK could not build technology firms on the same scale as Google, Amazon, or Apple.

UKAI, the trade body representing British AI companies, has warned that the current proposals place disproportionate emphasis on large foreign tech firms. Peter Flagg, COO of UKAI, put it succinctly:

“AI innovation spans industries, from small enterprises to non-tech sectors, all driving the new industrial revolution. It's time the government recognised this broader definition and tapped into the full potential of AI across the UK.”

Taken together, these developments prompt a critical question: Is the government prioritising high-profile big-tech partnerships at the expense of domestic innovation and smaller UK-based AI firms?

It can certainly appear that way unless the government intentionally balances partnerships. Large tech firms often offer scale, infrastructure, and resources that smaller companies currently lack, but over-reliance risks crowding out domestic innovation. A healthy strategy would combine high-impact collaborations with active investment in and procurement from UK-based AI startups and SMEs, ensuring competition and ecosystem growth.

Smaller UK based companies can also offer assurances that can be difficult to agree with the larger corporate organisations.

For example, Click4Assistance offer AI customer service software in the form Arti the Chat GPT powered chatbot, however are able to restrict the access to the wider web to prevent hallucination, and can assure organisations that the data remains in the UK and fully owned by the customer. It’s never shared or used to further educate OpenAI or ChatGPT.

Summary: AI Customer Service Software in UK Public Services

In 2025, the UK Government signed a non-binding Memorandum of Understanding with OpenAI to explore the role of artificial intelligence in transforming public services. The partnership aims to develop safeguards, share data, and support infrastructure growth.

While hailed by Technology Secretary Peter Kyle as a milestone in digital transformation, critics argue the deal lacks transparency and risks outsourcing valuable public data to an American company. Digital rights groups and UK AI trade bodies like UKAI have voiced concerns that the agreement overlooks smaller British AI firms in favour of Big Tech.

OpenAI, originally founded as a non-profit, now operates on a capped-profit model and receives major investment from Microsoft. Its tools, including ChatGPT, are being integrated into AI customer service software, including by UK-based provider Click4Assistance.

Click4Assistance’s platform enables GDPR-compliant AI Customer Service Software in the form of ARTI the chatbot, ensuring data stays within the UK and is never used to train OpenAI systems which offers a trusted alternative for public sector bodies.

While the UK’s push for digital transformation will allow more central and local government bodies to adopt AI with confidence, it is essential compliance and data security is handled with governance and oversight.

As AI adoption grows, the central debate remains: Should public data be handed to global tech giants, or can the UK nurture a homegrown AI ecosystem that delivers both innovation and sovereignty?