Only 1% 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% of professionals in the sector lack the skills to deploy it, and 65% have received no AI training at all.

These are two of the key findings of 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 - and the results expose a widening gap between strategic ambition and operational readiness.

A staggering 99% of estates leaders admitted that their current model is not fit for purpose, while only 3% of local government professionals and 6% 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% (local government) and 66% (healthcare) said they were “not very confident at all”.

“These findings reflect the very real pressures that estates professionals in local government and healthcare are navigating every day,” said Arunn Ramadoss, group director of marketing at Bellrock. “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.”

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  • The majority of local government and healthcare professionals believe legacy systems and outdated technologies are holding back organisations’ ability to deploy AI. 75% (local government) and 80% (healthcare) believe legacy technology is affecting progress “moderately”, “significantly” or “severely”.
  • Just 7% of local government workers and 3% 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% of respondents in local government and 6% 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% said they were “very confident” while 53% (local government) and 59% (healthcare) said they were “not very confident” or “not confident at all”, with 28% (local government) and 18% (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% said they “agree” or “strongly agree” with the idea, while among healthcare professionals, the figure was 80%.

When asked whether they believe current regulation and standards for AI are adequate for property services, only 1% of local government and 4% of healthcare professionals answered “yes, fully adequate”, while 38% (local government) and 39% (healthcare) answered “not adequate” or “not at all adequate”. 43% in local government and 37% in healthcare said they were “unsure”.

“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,” said Ramadoss. “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.”