How the newly announced Government Transformation Fund may help accelerate the adoption of AI and automation to enhance public services
Peter Corpe is Industry Leader, UK Public Sector at Appian.
Despite spending £26bn a year on technology, the public sector still relies on legacy systems that were never designed to cope with today’s demands. The state of digital government review from the Department for Science, Innovation and Technology (DSIT) highlights the magnitude of legacy still in existence as well as technology resource gaps that continue to frustrate public sector workers, wasting time and delaying essential services.
Photo by Luke Jones / Unsplash
It’s not just an inconvenience, it’s a growing crisis. In fact, the recent UK Public Sector Efficiency Survey revealed that employees lose an average of five hours per week to clunky, inefficient systems. That adds up to a staggering 30.6m hours of wasted work every week. By addressing these systemic inefficiencies, we could reinvest these resources to improve public services and meet citizens’ needs without raising taxes.
Is AI the answer?
In response, the UK government announced in the latest spring statement a £3.25bn Transformation Fund to enhance public service efficiency. Supporting a range of initiatives, the fund includes the introduction of AI tools to revolutionise front line service delivery.
However, if we are serious about modernising government, we need to do more than throw money at the problem and hope for the best – instead, we need targeted, measured reform. AI is not a magic solution on its own. Its effectiveness depends on the quality of the data it receives, and how well and quickly we act on insights. If we aren’t technically and organisationally prepared to act on its outputs, we are likely to overwhelm legacy systems and create bottlenecks instead of breakthroughs. Without the right groundwork, AI risks producing noise instead of value. To be set up for success, AI needs to be embedded into well-designed processes to ensure it delivers real economic benefits.
I am often asked what the biggest technology challenges in public service are today, and what the opportunities and barriers are for the sector to use AI effectively. My response typically focuses on the following issues.
Manual services and processes
Despite ongoing digital transformation efforts, most government and public sector services still rely on manual processes. The DSIT report reveals that 47% of central government and 45% of NHS services lack a fully digital pathway, with very few eliminating manual processing entirely. The DSIT also pinpointed that over £45bn per year of unrealised savings and productivity benefits (4% to 7% of public sector spend) could be achieved through full digitisation of public sector services. Baroness Maggie Jones, a DSIT minister, has expanded on this and confirmed that automating routine tasks could account for £36bn of that figure.
This reliance on outdated methods is evident in key departments. HM Revenue and Customs (HMRC) receives around 100,000 calls daily, likely from callers having failed to solve their issue online, while the Department for Environment, Food and Rural Affairs (Defra) continues to manage over 500 paper-based services. These figures highlight the slow pace of digital adoption across essential public services, leading to inefficiencies and delays. And that is before we consider the consequential economic impact to the country.
When services remain paper-based or rely on siloed systems, productivity suffers and resources are stretched thin. Streamlining these processes through digital transformation is essential for improving efficiency, reducing administrative burdens and ultimately enhancing service delivery for the public.
Fragmented and underused data
When data is spread across outdated legacy systems, access slows and productivity drops – making it harder to resolve cases quickly. Poor data access also limits the impact of AI, machine learning and analytics, which rely on seamless access to high-quality data for innovation and better decisions.
Solving this starts with adopting a platform that connects data and processes woven into a single framework. A data fabric, for example, creates a virtualised layer that links data across systems without needing to migrate it.
With better data management, organisations can train and deploy AI models more effectively, turning information into actionable insights. High-quality data fuels AI-driven efficiency – without it, the potential of a modern digital government remains out of reach.
The future of AI-driven processes in the public sector
Optimism about AI is growing within the public sector. Reports show that 62% of civil servants have some or high confidence in AI’s potential to improve their organisation’s efficiency.
Process modernisation and automation is the most powerful lever available to drive public sector and service reform for such tasks. A process automation solution reduces time–consuming tasks such as data entry, status tracking, SLA management, data validation and aggregation. Automating these actions would enable a shift towards more time spent on value-driven activities that can improve both internal efficiency and service delivery.
The key to unlocking AI’s full potential is embedding it within existing processes. Process is where action happens. A process provides clarity: a defined path that work can move through, refined and perfected over time. It’s where civil servants make decisions, allocate budget and resources, serve citizens and move things forward. When AI operates within processes, it gains purpose, governance and accountability – all vital to delivering value from AI.
While organisations are under pressure to integrate AI, its success depends on strong data infrastructures and human oversight. AI should be a partner, not a replacement, ensuring efficiency and innovation without compromising security or accountability.
To sustain long-term growth, the public sector must invest in agile platforms that adapt to rapid AI advancements with process orchestration technologies. A platform approach can streamline operations, enhance decision-making and improve public services. Embracing these tools isn’t just about modernisation, it’s essential for efficiency, stability and better service delivery for the long term.
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