Despite the government laying out an AI Action Plan and a proposed overhaul of tech usage in the UK public sector, a new report says most organisations are still wrestling with outdated systems, security anxieties, and staff overwhelmed by too many disconnected platforms.
The 2025 UK Public Sector CX Report from analyst firm Cavell Group and contact centre vendor 8×8, Inc. lays bare gaps in digital maturity, strategy, and frontline service capabilities across local government, housing, healthcare, and education.
The research uncovered several trends that consistently affect all four sectors surveyed:
- Citizen communication habits remain omnichannel: Email (74 percent), phone (68 percent), and face-to-face (66 percent) remain the top contact channels. Social media (52 percent) and live chat portals (45 percent) are gaining traction.
- Platform sprawl: Thirty-one percent of all organisations said their biggest internal communication challenge is that staff are using multiple, disconnected platforms. Integrated, all-in-one solutions remain the exception rather than the norm.
- AI and data integration pressures: Forty-seven percent expect policies to encourage more AI usage within three years. Meanwhile, 74 percent have been tasked with increasing integration with other government bodies by 2030.
- Security and compliance focus: Thirty-three percent said AI has forced an increased focus on data protection.
- Metric evolution: Organisations are rethinking success, moving beyond traditional metrics to more outcome-based, real-time analytics by 2030.
Public sector leaders also highlighted core operational issues with external communication, including long customer wait times, customers having to repeat themselves, call quality issues, and insufficient data reporting and training tools.
“Public sector organisations are telling us they’re at a critical turning point,” said Joe McStravick, VP, EMEA sales at 8×8, Inc. “There’s a clear appetite to improve citizen services as expectations around AI, data, and omnichannel engagement delivery increase. But for many, delivery of the tools, and training on their use, is not keeping pace – and that’s often down to budgets.”
Sector-specific challenges and priorities
Healthcare
- Top concerns revolve around data security, increased patient expectations, and evolving regulations.
- The sector is also under growing pressure to improve integration with other government IT systems and increase the move to cloud.
Education
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- Challenges include outdated collaboration tools, lack of shared knowledge systems, concerns over student data security, and bans on AI usage.
- Legacy communication channels such as email and phone are still heavily in use.
Local Government
- Digital transformation costs, poor network quality, and resistance to automation were cited as key issues.
- The priority for many is transitioning to cloud-based contact centers.
Housing Associations
- Pain points include fragmented communication channels, lack of integration with other relevant services, a dispersed frontline workforce, and concerns around platform and system migrations.
- Security of customer data remains a major focus.
- Many associations still rely on consumer messaging apps to maintain contact with service users.
“While there is no shortage of ambition, the reality is that fragmentation, outdated technology, and security concerns are still widespread,” said Finbarr Begley, senior analyst at Cavell. “The issue is budget, which means the path forward will demand strategic focus, better vendor partnerships, and a renewed investment in people and training. With the right platforms and policies, public sector organisations can not only meet rising expectations – they can exceed them, creating smarter, faster, and fairer services.”
Implications for future of CX in public sector
With 59 percent of public sector leaders saying AI will be the most transformational factor in contact centres by 2030, the research shows that most organisations are still early in their AI journey. While there is a focus on improving call routing, training, proactive citizen engagement, and self-service, many lack the infrastructure or insights to scale effectively.
Equally, concerns over security, cloud transition risks, and regulatory obligations influence buying decisions.
“These challenges speak to why unified CX matters more than ever,” said Jamie Snaddon, EMEA managing director at 8×8, Inc. “Public service teams want to deliver better outcomes, but fragmented systems and inconsistent citizen experiences hold them back. A single secure, AI-powered CX platform can give them the data, insights, and flexibility they need – whether that’s streamlining calls, improving accessibility, or helping mobile teams stay connected in the field.”
The report is based on research conducted by Cavell Group across 401 senior decision-makers from non-central government organisations across the UK in January 2025.
