Significant obstacles will impede the UK government’s goal to further integrate AI into the public sector, says the Public Accounts Committee (PAC.) According to a recent report by the committee of backbench MPs, while AI holds transformative potential for public services, the data that the government envisions will help fuel new AI systems is frequently of poor quality and often stored in outdated IT systems, termed ‘legacy’ systems. These systems, described as “an end-of-life product, out of support from the supplier, [and] impossible to update,” account for approximately 28% of central government systems as of 2024.
Additionally, said the PAC, an estimated one-third of the 72 highest-risk legacy systems remain without remediation funding. The report urges prioritisation of funding to address these technological shortcomings, cautioning that there are no quick solutions.
“The government has said it wants to mainline AI into the veins of the nation, but our report raises questions over whether the public sector is ready for such a procedure,” said PAC chairman Sir Geoffrey Clifton-Brown. “The ambition to harness the potential of one of the most significant technological developments of modern times is of course to be welcomed. Unfortunately, those familiar with our committee’s past scrutiny of the government’s frankly sclerotic digital architecture will know that any promises of sudden transformation are for the birds.”
Transparency and public trust in AI usage remain key concerns
Transparency in AI usage by government departments is another area of concern. The report indicates slow progress in this regard, which could undermine public trust, essential for AI’s successful adoption. By January 2025, only a limited number of records had been made available on a government website intended to enhance transparency in algorithm-assisted decision-making. The PAC calls on the government to address public apprehensions regarding the handling of sensitive data in AI applications.
The report also points to challenges in fostering a competitive market for AI suppliers. The PAC warns that the current dominance of a few large technology firms could hinder competition and innovation. The government’s procurement strategies may lead to an over-reliance on specific companies, limiting adaptability.
Digital skills shortages present yet another barrier to AI adoption. In 2024, around 50% of civil service digital and data roles went unfilled, and 70% of government departments reported difficulties in hiring and retaining AI-skilled staff. The PAC has consistently expressed concerns about these digital skills gaps and remains sceptical about the Department for Science, Innovation and Technology’s (DSIT) planned digital reforms addressing the issue.
Regarding DSIT’s role in AI policy, the PAC acknowledges the establishment of a new digital centre within the department but questions its capacity to effect change across the public sector. The report recommends appointing a senior digital officer to engage with top management across all departments and their respective agencies.
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