AI opportunities in UK public services face adoption hurdles

A recent report by Economist Impact and SAS has highlighted that prioritising both culture and technology is essential for enhancing productivity in government sectors.

The document "Reimagining the Future of Public Sector Productivity" follows the UK government's announcement of its AI Opportunities Action Plan, with Prime Minister Sir Keir Starmer recognising artificial intelligence as having a "vast potential" for rejuvenating UK public services. The report emphasises that "technology alone won't unlock productivity in government".

Jonathan Birdwell, Head of Policy & Insights at Economist Impact, commented, "Amid fiscal constraints and rising demands for public services to address complex challenges like aging populations, climate change and economic uncertainty, governments must act decisively to implement productivity reforms. For instance, the fiscal response to the Covid-19 pandemic in select high-income countries amounted to 21% of GDP, underscoring the critical role of government intervention in times of crisis."

"Our research finds that while digital transformation is essential, it is not enough on its own. Success depends on adaptive organisational structures that overcome resistance to change and involve employees in the design and implementation of new technologies. Artificial intelligence offers the public sector the chance to transform how it serves citizens and enhance the experience of employees," Birdwell added.

The report, based on a survey conducted among 1,550 public sector employees across 26 countries, including the UK, identifies key points such as the critical role of digital transformation and organisational redesign, the significance of partnerships with external suppliers, and the need for greater employee engagement in the process of implementing productivity reforms.

According to Jennifer Robinson, Global Government Strategic Advisor at SAS, "Technology alone won't unlock productivity in government. But with a flexible culture that adapts to new innovations, incremental improvements in productivity over time can make a huge difference - this will be crucial to the UK government's rollout of AI in the public sector."

The report's survey indicates that 70% of global respondents are only adopting new technologies after they have been proven effective elsewhere, with this figure being slightly higher in the UK at 75%. Respondents highlighted data privacy concerns and a culture of risk aversion as significant challenges.

Despite these challenges, a majority of respondents, 91% globally and 87% in the UK, view digital technologies as more beneficial than risky to their organisations.

The report explores the potential impact of AI, with 52% of global respondents anticipating significant improvements in productivity due to AI over the next three years. Predictive analytics and cybersecurity are identified as the top use cases for AI, consistent with the UK results.

The research underlines the importance of engaging public sector employees in the adoption of AI technologies, stating that less than 4% of UK respondents reported employee involvement at various stages of AI integration.

The publication is supplemented by interviews with experts from academic, governmental, and international institutions, offering qualitative insights and recommendations for pursuing productivity reforms within government sectors.