Challenges and Opportunities for AI Adoption in Government

The Government's ambitious plans to integrate artificial intelligence (AI) into public services face substantial obstacles, as highlighted in the recent Public Accounts Committee (PAC) report. The report discusses the significant challenges that lie ahead and emphasises the need for strategic reforms to overcome these barriers.  

Key Challenges Identified  

The PAC report points to the prevalence of outdated or 'legacy' IT systems within government operations, with 28% of central government systems meeting the end-of-life criteria in 2024. These systems hinder the quality of data essential for effective AI implementation. Approximately a third of the Government's highest-risk legacy systems still lack the necessary remediation funding, demanding urgent prioritisation.  

Securing public trust is crucial for successful AI adoption. The PAC finds slow progress in transparency regarding algorithm-assisted decision-making, with only a handful of records published by January 2025. The report calls for enhanced efforts to address public concerns over sharing sensitive data.  

According to the PAC, the dominance of a few large technology suppliers in AI risks stifling competition and innovation. The PAC warns that the Government's current procurement approach may lead to over-reliance on specific companies, compromising adaptability.  

Lastly, persistent digital skills shortages present another major hurdle. In 2024, around half of the roles advertised in civil service digital and data campaigns went unfilled, with 70% of departments facing challenges in recruiting and retaining AI-skilled staff. The PAC remains skeptical about the effectiveness of DSIT's planned digital reforms in addressing these gaps.  

Recommendations from the PAC  

The PAC recommends embedding a senior digital officer within the top management of every department to drive change. Elevated digital leadership is emphasised to ensure effective policy delivery.  

Promoting transparency and ethical use of AI is central to building public trust. The Government must publish more records and engage in open discussions about AI's role in decision-making processes.  

Addressing technology and skills gaps requires targeted investment. The PAC calls for prioritising funding for remediating outdated systems and attracting digital talent through competitive compensation and career development opportunities.  

The PAC report underscores the substantial challenges the Government faces in adopting AI for public services. Addressing issues related to technology, data quality, transparency, supplier dynamics, and digital skills is critical. Implementing these recommendations will be pivotal in ensuring AI's successful integration into the public sector, driving efficiency and innovation.