Upper Hutt City Council will borrow $4.4m from the LGFA (Local Government Funding Agency) for new projects. $513,000 of that will fund adopting AI and ensuring legal compliance. The council is still planning its approach and has not confirmed total costs.

AI will be used to improve internal efficiency and require software licences costing $60 per user each month. The council already uses ChatGPT and Microsoft Copilot across its operations. Acting corporate services manager Sarah Tunnicliffe said borrowing was required because AI counted as new IT equipment under its financial strategy.

The remaining borrowing includes $224,000 for rural road safety upgrades, $29,000 to replace central city CCTV cameras, and $31,000 for new road sealing.

Neighbouring Hutt City Council has used AI since 2024 to speed up reporting and improve services. It spends $180,000 a year for 300 licences and saves $900,000 and 44,000 staff hours annually. It has built custom AI assistants for routine tasks and is testing tools to speed up LIM searches and automate resource consent invoices. Each invoice currently takes up to 10 minutes, with up to 100 processed on busy weeks.

Source: Justin Wong / Local Democracy Reporting / Radio New Zealand

03/07/26