Legacy tech hindering AI drive

Legacy technology and poor data are blocking AI progress

Outdated government IT systems using siloed data are major obstacles to AI adoption in the public sector. Despite being flagged as high-risk, nearly a third of the government’s legacy systems still lack funding for upgrades, at the time of the report.   

The transparency around AI use in the public sector is minimal, therefore eroding public trust. Government bodies are not publishing enough information about how algorithms are used in decision-making.  

Without clear standards and more transparent reporting, the public may lose confidence in government AI initiatives. 

Recruiting and retaining digitally skilled professionals in the public sector continues to be a major issue in AI implementation. The report found that over 70% of departments reported difficulty sourcing AI talent, partly because of large pay disparities with the private sector making the civil service less competitive. Current reforms may not be sufficient to close the gap.  

Many government departments are piloting the use of AI tools, ranging from natural language processing to image recognition. But despite these projects, there is little evidence that these tools are being rolled out more widely. 

One major issue is the lack of a centralised process for combining insights from these pilots and sharing results between departments. Without this more holistic approach, promising innovations risk being overlooked, duplicated, or confined to isolated teams.  

DSIT has acknowledged the gap and is trialling an AI Knowledge Hub to improve collaboration, but real progress will depend on stronger leadership and a more coordinated strategy. 

The AI market dominated by a small number of large technology suppliers; as such, PAC has raised concerns about competition, innovation, and vendor lock-in. In response, DSIT has committed to developing a dedicated AI sourcing and procurement framework and establishing a digital commercial centre of excellence to ensure better value and broader supplier access.