Challenges and opportunities for AI adoption in government

Insights from the Public Accounts Committee Report

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The PAC report points to the prevalence of outdated or 'legacy' IT systems within government operations, with 28% of central government systems meeting the end-of-life criteria in 2024.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 The PAC calls for prioritising funding for remediating outdated systems and attracting digital talent through competitive compensation and career development opportunities.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.

Heather Cover-Kus

Head of Central Government Programme, techUK

Heather is Head of Central Government Programme at techUK, working to represent the supplier community of tech products and services to Central Government.

Prior to joining techUK in April 2022, Heather worked in the Economic Policy and Small States Section at the Commonwealth Secretariat. She led the organisation’s FinTech programme and worked to create an enabling environment for developing countries to take advantage of the socio-economic benefits of FinTech.

Before moving to the UK, Heather worked at the Office of the Prime Minister of The Bahamas and the Central Bank of The Bahamas.

Heather holds a Graduate Diploma in Law from BPP, a Masters in Public Administration (MPA) from LSE, and a BA in Economics and Sociology from Macalester College.

Email:: [email protected]
LinkedIn:: https://www.linkedin.com/in/heather-cover-kus-ba636538

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Charles Bauman

Junior Programme Manager - Central Government, techUK

Charles Bauman is a Junior Programme Manager in the Central Government Programme at techUK.

He supports the programme’s mission to represent the technology supplier community to the UK government and advocate for digital innovation to address public sector challenges. Charles helps facilitate market engagement, foster partnerships, and ensure that tech suppliers and the government work collaboratively to improve outcomes, deliver value for money, and enhance public services for citizens.

Before joining techUK, Charles gained significant experience in research, analysis, and strategic advisory roles. At H/Advisors Cicero, he specialised in public affairs and corporate communications, while at Verdantix, he supported sustainability research and advisory projects, focusing on regulatory and environmental challenges.

Charles holds an MSc in Theory and History of International Relations from the London School of Economics and Political Science (LSE) and an MA in Medieval History from King’s College London.

Charles enjoys volunteering with a think tank, reading, hiking, and spending time with his dog and family outside of work.

Email:: [email protected]
Website:: www.techuk.org
LinkedIn:: https://www.linkedin.com/in/charles-bauman-75712016b/

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