The UK government faces a significant uphill struggle in its efforts to expand artificial intelligence (AI) adoption across the public sector, according to a new report from the Public Accounts Committee (PAC).
The report highlights major challenges, including outdated technology, poor-quality data, transparency concerns, and a lack of digital skills, all of which threaten the government's ability to harness AI effectively.
The government has outlined ambitious plans to integrate AI into public services, aiming to enhance efficiency and improve decision-making. However, the PAC warns that these efforts are being hampered by critical structural issues. One of the primary obstacles cited is the poor state of government data, much of which data is still stored in legacy IT systems. In 2024, an estimated 28% of central government systems fell into this category, with a third of the highest-risk legacy systems still lacking necessary remediation funding.
The report stresses that there are no quick fixes for these problems and calls for prioritised funding to modernise government technology, without which it suggests AI adoption could be significantly delayed or rendered ineffective.
Public trust in AI remains another significant hurdle, with concerns about how government departments use AI-driven decision-making. The PAC report criticises the slow progress in making AI applications more transparent. Despite the government launching a dedicated website for tracking algorithm-assisted decision-making, only a handful of records had been published by early 2025. The committee warns that failing to address public concerns over data privacy and AI transparency could undermine confidence in the technology.
The report also raises concerns about the government’s reliance on a small number of large technology suppliers, which could stifle competition and limit innovation in the AI market. The PAC warns that the government’s procurement approach may lead to over-reliance on specific firms, restricting flexibility and adaptability in AI deployment.
Persistent digital skills shortages pose another significant barrier. Around half of the roles advertised in Civil Service DDaT campaigns went unfilled in 2024, and 70% of government departments reported difficulties in hiring and retaining AI talent.
The report questions whether DSIT has sufficient authority to drive AI adoption across government departments. It recommends embedding senior digital officers within each department’s leadership team to ensure AI integration is effectively managed.
PAC Chair Sir Geoffrey Clifton-Brown MP emphasised the need for fundamental change at senior levels of government. “The Government has said it wants to mainline AI into the veins of the nation, but our report raises questions over whether the public sector is ready for such a procedure,” he stated. “A transformation of thinking in Government at senior levels is required, and the best way for this to happen is for digital professionals to be brought round the top table.”