Government’s AI transformation demands radical procurement overhaul

The UK government’s ambitions to become a global AI leader are being undermined by an outdated procurement system that perpetuates legacy technology and stifles innovation, according to Matt Cloke, CTO at British software company, Endava.

“Governments have got into the habit of asking the same suppliers to solve all of their questions,” explained Cloke. “It’s like turkeys voting for Christmas. Do they genuinely want to transform the way in which government accesses IT and becomes more efficient? Probably not, because it’s going to directly impact their bottom line.”

Cloke pointed to a fundamental problem: procurement processes are designed to appear rigorous but actually prevent new entrants from demonstrating their capabilities.

“If you’re trying to break into government IT services, how do you differentiate yourself when you’re limited to 200 characters in an Excel spreadsheet?” he asked.

Existing suppliers can easily populate these limited spaces with government project codes and department names, instantly credentialing themselves. This, said Cloke, creates a self-perpetuating cycle of technological stagnation.

The issue is particularly critical as the government seeks to modernise its approach to technology, especially in AI.

Cloke draws parallels with the banking sector, where legacy platforms have long been left “sitting in the corner,” creating significant barriers to digital transformation. The government faces identical challenges, he said, but its procurement model prevents the fresh thinking needed to address these technological bottlenecks.

The financial implications are substantial. Cloke points to a recent governmental contract worth £16 billion, which once again sees major established suppliers lined up to dominate the market.

“It’s a lot of money that just goes through the same sets of people,” he said.

Interestingly, Cloke sees potential inspiration in unexpected places. While not endorsing his methods, he noted how Elon Musk’s approach of proposing radical technological transformation – such as replacing a mainframe system within six months using AI – demonstrates the potential for breaking traditional procurement models.

Cloke noted that the government’s AI strategy shows promising signs of understanding these challenges. Last month the UK Government announced it would be testing a new funding model for public sector spending on technology and cybersecurity. It said this means embedding a start-up mindset, which would “offer a route to simplify how its funds small AI projects.”

True transformation requires more than technological investment, said Cloke. “It isn’t just about technology. It’s about how you change the procurement landscape and bring new experiences into government organisations.”

For Cloke, the message is clear: government procurement needs a radical rethink. “The current system is the perfect bureaucracy,” he said. “It’s almost designed to inhibit disruption and transformation.”