Embedded Files
Independent Schools: Reduce Operating Costs with Automation and Agentic AI Technology
Independent Schools: Reduce Operating Costs with Automation and Agentic AI Technology
Unprecedented Financial Pressures
Unprecedented Financial Pressures
Independent schools in the UK are facing unprecedented financial pressures in 2025.
With the introduction of VAT on fees, increased National Insurance contributions, and the removal of business rate relief, a strategic shift towards a sustainably lower cost base is no longer optional – it’s essential to maintain fee affordability and long-term viability.
Technology as a Strategic Cost-Saving Lever
Technology as a Strategic Cost-Saving Lever
The strategic application of technology, particularly automation with agentic AI technology, can significantly enhance staff productivity.
This, in turn, can lead to substantial annual "no-replacement" headcount savings within non-teaching roles.
Non-teaching staff costs are typically 20% of net fee income
Non-teaching staff costs are typically 20% of net fee income
Figure 1: A sample of 10 independent schools, from full boarding to smaller day schools, showing a range in non-teaching staff costs as a proportion of net fee income. Taken from Charity Commission for England and Wales Register of Charities, Accounts and Returns website.
Other cost-cutting avenues
Other cost-cutting avenues
While other cost-cutting avenues exist (such as management restructuring, postponing capital projects, renegotiating contracts, in-housing services, or pursuing VAT rebates), staff costs remain the dominant expenditure.
Exploring revenue generation
Exploring revenue generation
Exploring additional revenue opportunities beyond fees, like extended facility rentals or international school partnerships, can also contribute over time.
Non-teaching staff costs
Non-teaching staff costs
Non-teaching staff expenditure typically accounts for around 20% of net fee income.
This represents a significant area for potential savings.
Automation Technology with Agentic AI
Automation Technology with Agentic AI
Schools sector lags in operational technology adoption
Schools sector lags in operational technology adoption
Unlike most sectors that have significantly reduced operating costs through technology over the past two decades, independent schools have yet to fully embrace this opportunity.
Current digital strategies often overlook operational efficiency
Current digital strategies often overlook operational efficiency
Most school digital strategies rightly focus on the pupil experience, developing pupils’ digital fluency and teaching methodologies.
However, they frequently overlook the strategic application of technology to streamline administrative and operational processes outside the classroom.
Underutilised existing technology
Underutilised existing technology
Existing Microsoft 365 or Google Workspace platforms are often underutilised beyond basic functions.
These platforms contain powerful automation tools capable of driving substantial efficiencies.
Addressing manual processes
Addressing manual processes
A significant amount of time and resource is being consumed by manual data entry, repetitive tasks, and inefficient communication within administrative processes.
Technology can help address these inefficiencies.
Microsoft 365 or Google Workspace, with a little help from AI
Microsoft 365 or Google Workspace, with a little help from AI
1. Begin with basic workflow automation
1. Begin with basic workflow automation
Use Power Platform, AppSheet / Apps Script to automate simple repetitive tasks, reducing reliance on support staff.
2. Add Agentic AI for end-to-end workflow automation
2. Add Agentic AI for end-to-end workflow automation
Unlike traditional automation tools, agentic AI reasons, plans, and adapts dynamically to achieve objectives.
Agentic AI can handle nuanced tasks and bridge system gaps without manual intervention.
It has the potential to automate many more school administrative workflows.
3. Take intelligent assistance
3. Take intelligent assistance
M365 Copilot and Google Gemini can assist non-teaching staff with content creation (e.g., drafting communications, summarising reports), data analysis, and more effective email management, freeing up valuable time.
Shifting internal communication to platforms like Teams also saves time.
Getting started
Getting started
Take a structured approach to implementation:
1. Identify
pain points
1. Identify
pain points
Conduct a thorough review of non-teaching administrative processes to pinpoint inefficiencies and manual tasks.
2. Decide your future state
2. Decide your future state
Define ideal, more efficient workflows using technology.
3. Use what you already have
3. Use what you already have
Explore and make use of the full capability of your current Microsoft 365 or Google Workspace subscription, including its automation technology.
4. Consider
Agentic AI
4. Consider
Agentic AI
Discover how you could use agentic AI to automate more complicated workflows and bridge gaps between your systems.
5. Pilot and iterate
5. Pilot and iterate
Begin with small-scale pilot projects to test and refine solutions.
6. Training and support
6. Training and support
Invest in training and ongoing support for non-teaching staff to maximise adoption and therefore the productivity gains.
By strategically implementing this technology, especially automation technology supported by agentic AI, there is the potential to improve support staff productivity.
Over time, significant opportunities for "no-replacement" headcount savings will follow, all without compromising the essential support functions of the school.
Help is Available
Help is Available
The EdTech Consultancy is here to help you explore technology's potential to reduce your school's operating costs:
All images for this article are courtesy of Google Gemini
Report abuse