Editorial

UK Government’s big AI reveal: what is the tech industry’s reaction?

It’s a good starting point, say tech industry experts – but the UK needs to be doing much more to become an AI leader.

Posted 15 January 2025 by Christine Horton


The tech industry has responded to the Government’s plans to revolutionise public services through artificial intelligence (AI). While welcoming the proposals, many who contacted Think Digital Partners felt that the Government should be doing more to become an AI leader.

Nigel Church, CEO of managed IT service provider and AI specialist Emerge Digital, believes despite this being a step in the right direction, the Government still needs to do much more to increase AI adoption across the public sector.

“The £14 billion investment is a good start, but it needs to be five times that to truly reflect the growth and cost-saving potential of AI,” he said.

AI has the potential to transform public services, improving customer experience, reducing costs, and delivering better outcomes for citizens. However, ensuring the right infrastructure is in place is crucial so everyone can access and benefit from these innovations.”

Church said the Government should refocus on the Levelling Up agenda of the previous Government, and review the industrial strategy to ensure it covers every region of the UK. “It’s vital to consider how AI will impact industries and communities nationwide,” he noted.

Oliver Shaw, CEO of workforce transformation platform Orgvue, also believes that the UK is still not doing enough to be an AI leader.

“The government’s AI Action Plan seems to revolve around AI use in the public sector, and while that’s laudable and the ambition is timely, it’s unlikely to turn the UK into a global leader. This ‘action plan’ will see us invest in – and do things – that leaders such as China and the US are already doing, so what is it that we’re doing differently to anyone else that will enable us to be a leader?

“If you’re playing the All Blacks, your strategy is not to ‘play better’, you develop a strategy that plays into your strengths and exposes their weaknesses. Based on this plan, the UK’s entire national AI strategy is based around implementing AI in the public sector and on the private sector investing £13 billion. This seems small when NVIDIA on its own is worth over $3 trillion. It is welcome that the government has reversed its view on Quantum computing, this is a key strength for the UK. Let’s hope that the six month hiatus does not sacrifice our leadership position on this critical new frontier.”

Elsewhere, Craig Mill, head of public sector for SAP UKI said with a growing national debt and a heightened emphasis on departmental cost cutting, it’s important “to do more than just tinker around the edges of delivery costs, which is not really a strategy for success.”

 He explained: “Our public sector provides vital services, from NHS and social care to benefits provisions and tax collection, the breadth of which pervades every aspect of our lives. But there are complex challenges across these public services as citizens expect more while there are demands to reduce the cost to serve combined with an ever-increasing cost to deliver.

“Ensuring these services are still here for generations to come requires a new way of thinking. While it’s no magic bullet, AI is a key piece of the puzzle, and technology as a whole needs to be at the centre of industry transformation. With that in mind, the UK’s re-commitment to a new digital centre of government is a welcome starting point.”

However, he said that the Government’s proposals must be met with action, and that requires the public sector to be digitally ready.

“AI can only be successful when it’s trained with the right data, and that data comes from known sources, so it can complement human service delivery and support our civil servants to do their job effectively and without unnecessary constraint. That’s how it will drive real transformation and become a mainstay of our industry transformation.”  

ICS.AI has been working with local authorities for the last few years to implement solutions for many of the priority areas identified in the plan, including AI-powered customer service, AI-assisted staff support and AI-enabled social care.

CEO Martin Neale, said: “Having worked closely with public sector organisations on AI transformations for many years, I’ve seen first-hand how AI technology can transform service delivery while addressing the critical resource challenges. In my experience, the key to success isn’t just in technology itself, but in its considered application to real-world challenges. The most effective AI implementations start with a very clear focus on public value – improving citizen services, supporting frontline staff, and ensuring efficient use of public resources. The government’s new plan quite rightly emphasises these priorities.”

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