Editorial

Bridging the AI Adoption Gap: Why public sector organisations need a new approach

Martin Neale, CEO of ICS.AI, addresses the ‘AI adoption gap’ – the widening divide between AI’s potential and its practical, scaled implementation in government.

Posted 26 June 2025 by Christine Horton


In my twenty-five years at the intersection of technology and public service, I’ve seen many waves of digital transformation. None, however, has held as much promise – or stirred as much anxiety – as the rise of generative AI.

As we approach mid-2025, an uncomfortable truth is emerging: despite major investments, most public sector organisations are stuck in what I call the “AI adoption gap” – the widening divide between AI’s potential and its practical, scaled implementation.

The AI implementation reality check

The statistics are telling. While 85 percent of UK county and unitary councils are already incorporating AI across their services, fewer have more than two use cases live at enterprise scale. Similar patterns appear across healthcare trusts, education, and central government.

It’s not due to a lack of ambition. Councils are directing 15 percent of their budgets towards digital transformation. Yet many projects remain trapped in “pilot purgatory” – promising experiments that never scale or deliver real impact.

After analysing hundreds of AI journeys, we’ve identified four persistent blockers creating this gap.

Four barriers to scaled AI adoption

  1. The business case paradox
    Public bodies must justify AI spend with strong ROI projections. But when implementations are siloed – a chatbot here, a document processor there – benefits are fragmented and hard to measure. Ironically, the business case becomes viable only at scale, yet scale requires a solid business case.

  2. The hidden cost of fragmentation
    Today’s piecemeal approach to AI adoption comes with hidden costs. Each separate solution demands its own procurement, compliance, training, and integration. In some cases, councils have found they were spending triple on five different tools than they would have on a single, unified platform with the same functionality.

  3. The skills and governance deficit
    Public sector teams face a shortage of AI-specific skills – from prompt engineering to model validation. When resources are spread across isolated projects, they’re quickly overstretched. At the same time, governance structures designed for single use cases don’t scale, exposing organisations to compliance and ethical risks.

  4. The trust and adoption threshold
    Perhaps most crucially, disjointed AI rollouts create inconsistent user experiences. Staff and citizens encounter different behaviours and interfaces across services, undermining trust and causing “AI fatigue” – a reluctance to engage with unpredictable systems.

Why the platform model works

To close the AI adoption gap, we need to move from isolated tools to unified platforms. This shift unlocks multiple advantages:

  • Unified economics: Aggregated benefits across use cases make the ROI case far stronger.
  • Standardised governance: Consistent data handling, ethics, and risk controls can be applied platform-wide.
  • Shared technical resources: Specialist teams can support multiple departments rather than duplicating effort.
  • Consistent user experience: Uniform AI behaviour and design foster greater user confidence and adoption.

Crucially, platforms change the AI adoption curve. The first deployment might take weeks. The tenth? Days. The fiftieth? Hours. This exponential scaling is only possible when capabilities are built on a common foundation.

A better economic model for public sector AI

This approach doesn’t just improve technology delivery – it transforms the economics of AI in the public sector. Our work shows that platforms deliver:

  • 40–60 percent lower total cost of ownership than equivalent fragmented implementations
  • 3-5x faster deployment of new use cases after platform setup
  • Up to 70 percent higher user adoption due to consistent experiences
  • Stronger business cases, with benefits aggregated across departments and services

Instead of measuring isolated gains, organisations can evaluate AI’s value holistically – across entire operations and citizen journeys.

The ethical advantage

Beyond cost and efficiency, there’s a deeper ethical imperative. Fragmented AI adoption often results in inconsistent governance: different standards for different services, leading to accountability gaps.

Platforms allow organisations to embed unified governance from day one – ensuring fairness, transparency, and oversight across every AI-enabled interaction. For public services, where trust and equity are paramount, this is non-negotiable.

From pilots to purposeful transformation

For public sector leaders, the message is clear: it’s time to move beyond pilots and proofs of concept. Instead, focus on building the foundational platforms that enable AI to scale responsibly, efficiently, and equitably.

Successful organisations start by mapping AI opportunities across their full remit – spotting shared needs, recurring tasks, and cross-department potential. They then deploy platforms to serve these needs with consistency, beginning with high-impact use cases that demonstrate fast value and create momentum.

This approach doesn’t just close the AI adoption gap – it transforms it into an opportunity for long-term, strategic change.

Final thought

As generative AI moves into its third year of real-world deployment, public sector organisations must shift from experimentation to transformation. The winners won’t be those with the most pilots, but those who embed AI into the fabric of their operations through unified, scalable platforms.

The AI adoption gap is real – but with the right strategy, it’s entirely bridgeable. By rethinking implementation models, investing in ethical and economical platforms, and focusing on consistent user outcomes, public sector leaders can deliver a new era of service – one that’s smarter, fairer, and more sustainable.

Event Logo

If you are interested in this article, why not register to attend our Think AI for Government conference, where digital leaders tackle the most pressing AI-related issues facing government today.


Register Now