A new report from Phoenix Software and the National Housing Federation (NHF) reveals that while enthusiasm for artificial intelligence (AI) is growing rapidly across the social housing sector, most organisations remain in the early stages of adoption — with limited confidence, policies, and skills in place to support responsible use.

The report mirrors the findings from a report we covered previously from Service Insights Ltd, that found a similar imbalance between the appetite of the sector to adopt the new technology and the confidence of staff when using it in their day to day roles.

The new report, The State of AI in Housing 2025 is based on a detailed survey of UK housing associations across the UK, covering a diverse range of organisation sizes and geographic regions. The survey included housing associations of varying sizes and regions, representing average ownership of 2,000–19,999 homes. It explored current use of AI, challenges to adoption, and levels of preparedness. The State of AI in Housing 2025 is the latest report from Phoenix which explores AI in the workplace.

Lizzi Hearn, External Affairs Manager, National Housing Federation: “These results show optimism across the housing sector about AI’s potential to bring tangible, practical benefits to social housing tenants. A standout theme was the opportunity to free up social housing staff from repetitive and administrative tasks, allowing them to focus on more meaningful work. However, it is vital that adoption is responsible, ethical, and inclusive. Through our partnership with Phoenix, we are helping housing associations build the knowledge and confidence needed to make the most of the AI revolution, so they can improve the experience of social housing tenants across the country.”

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Most housing associations are exploring AI, but lack confidence

The research found that:

• 60% of housing associations are exploring or researching how AI could support them
• 47% already use AI in day-to-day operations, while 30% plan to do so soon

While 77% of housing associations already use AI in day-to-day operations, or are planning to do so soon, the report shows that most are still at the start of their AI journey. Confidence in areas like responsible AI use and governance remains low, and few have formal structures in place to manage risk or ensure responsible use:

• 87% of respondents reported low knowledge around AI
• 82% of organisations said they had low confidence in using AI ethically or lawfully
• 76% of organisations expressed low confidence in managing AI-related risks

At the heart of the issue is a lack of skills and expertise (reported by 80% of respondents), which impacts every other aspect of implementation, from designing AI solutions to managing them securely and effectively, to staff confidence in using AI. This skills gap inevitably leads to security and privacy concerns, with almost 70% of respondents worrying about their ability to handle sensitive resident data responsibly with AI.

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Housing sector remains bullish on AI’s potential

Despite the challenges, housing associations are clear about AI’s potential benefits:

• 86% see opportunities to improve efficiency
• 84% highlight productivity gains
• 66% expect AI to enhance customer experience

Respondents also cited opportunities for data-driven decision-making and innovation, with many viewing AI as a way to free up staff from repetitive tasks and focus more on resident wellbeing.

These findings highlight the need for sector-wide collaboration, training, and guidance to bridge the capability gap and ensure AI can be deployed safely and effectively.

Craig Taylor, CTO, Phoenix Software: “Our research with the NHF reveals a sector eager to embrace AI but held back by limited confidence and capability. Many housing associations recognise AI’s potential to transform operations and services, but they need support with strategy, governance, and skills to turn ambition into action. The good news is that appetite is strong, so the foundations for meaningful change are already being laid.”