Why shared services are the cornerstone of AI in government

For public sector organisations, doing more with less is not an aspiration, it has been the operating reality for decades. And today, public sector leaders are placed under growing pressure to deliver smarter, faster and more personalised services, even as purse strings remain tight.

Recent public spending decisions in the UK government have made one thing clear: AI is no longer a discretionary line item for public service. Substantial increases to health technology budgets, dedicated funding to advance national AI ambitions, and continued investment in tackling legacy IT systems across departments all point the same way.

To meet rising citizen expectations and make the most of advances in technology, the public sector needs a more collaborative, connected foundation of shared services. And for AI to successfully scale across the public sector, fragmented systems and outdated infrastructure cannot be allowed to slow progress.

Interoperable data, with secure cloud foundations, and a clear understanding of sovereignty controls will be necessary factors in allowing public sector information to be shared securely and used responsibly to drive efficiencies. As, for every hour saved through shared, well-run infrastructure will be an hour that can be reinvested in frontline services, or spent improving outcomes for citizens.

Moving beyond the departmental model

For too long, digital strategy in government has been executed department by department, with each organisation running its own standalone systems. It is not unusual for two departments serving the same citizens to maintain entirely separate HR and finance platforms, across different suppliers, configured by different teams – unable to share so much as a common employee record between them. That model is inefficient at the best of times, and now, given the scale of the AI opportunity on the table, is increasingly unsustainable.

Shared services bring together capabilities, data and processes across organisations, for a unified approach across departments. Done well, this can reduce duplication, improve access to data, and create space for joint innovation between teams that would otherwise be working in isolation.

This is the thinking behind the Government’s Synergy Programme, which is running shared services for the Department for Work and Pensions (DWP), the Department for Environment, Food & Rural Affairs (DEFRA), the Ministry of Justice (MoJ) and the Home Office. Across the departments, core corporate services such as HR, finance, and even supply chain processes, are being standardised on one system.

The efficiencies created by access to joint cross-departmental communication will target nearly half of all civil servants in the UK, and most importantly, can be funneled back through improved services for citizens.

Learning from the past to build for the future

Shared services are not a new idea, and neither are the obstacles to delivering them. Legacy IT remains the single biggest barrier: with a foundation of immovable back-office platforms, disconnected data silos, and systems that were never designed to talk to one another. It’s not surprising that the outdated technology has brought delays or underestimated costs.

Where local and regional bodies have successfully implemented a programme, a few patterns recur. Joint initiatives between neighbouring councils, and shared platforms between regional police forces, point to what actually works – factors like early strategic alignment between the organisations involved, collaborative governance structures that give every partner a real stake in decisions, and upfront investment in technology that can scale rather than needing to be replaced in a few years. Success also depends on clear communication, both between departments and with technology partners, and on setting realistic expectations for staff whose day-to-day work in HR, finance or casework will change as a result.

Unlocking AI and cloud potential through shared services

The next phase of public service delivery will be shaped by AI and cloud technology, offering real-time collaboration, predictive insights and meaningful cost reduction. But that promise depends entirely on having a foundation that supports integration, agility and continuous improvement.

This is where shared services can accelerate value rather than simply cut cost. Government initiatives to deploy AI tools for civil servants are a great step towards reducing administrative burden and freeing up staff time for higher-value work. But that ambition only translates into results if the underlying data is accessible and the systems are standardised. Without that foundation, AI risks becoming another layer of complexity bolted onto already fragmented infrastructure, rather than the catalyst for efficiency it is meant to be.

Shifting to cloud-based platforms that reduce the burden of maintaining bespoke IT allows public bodies to collaborate more easily and share data more consistently across departments, creating the conditions in which AI adoption can succeed. Cloud technology is also what makes significant priorities for the sector, such as sovereignty, by giving public bodies the ability to secure and manage their data and importantly, make it accessible for the innovation and resilience needed for effective AI deployment.

Doing more with less, for good

To fully realise the benefits of cloud and AI, and to make good on the ambitions set out in recent government funding commitments, the public sector needs to treat shared services as more than a cost-saving mechanism. It is a strategic enabler of better public service delivery, and a precondition for AI to work at scale rather than in isolated pilots. Ultimately, this is not only a technology question. It is about transformation, collaboration, and building a public sector that is more resilient for whatever comes next.