The UK government hopes to improve innovation and public services by announcing its plans to change how digital projects and AI experiments are funded in the public sector
These changes will make it easier for new technologies to be tested and scaled, ultimately delivering better services to citizens and more value for taxpayers’ money.
Ensuring the best of new technologies
The recent review found that the current funding processes for digital projects are overly complex and slow, often delaying or blocking promising ideas entirely.
This is particularly prominent in experimental technologies like artificial intelligence (AI), which can struggle to gain approval under the current system.
The government’s new approach hopes to simplify and facilitate these processes, removing unnecessary barriers and helping projects to progress more quickly.
Funding small AI experiments
Under the new system, a “start-up” mindset will be adopted to encourage innovation in government-funded technology projects.
This approach will focus on funding small AI experiments and the replacement of outdated technologies, with an emphasis on testing prototypes on smaller budgets before scaling them up.
The government thinks this will allow more flexible testing so that all ideas can be given additional support.
Four new funding approaches will be introduced starting in April. These include “staged funding,” which will support innovation by providing resources for initial prototypes and increasing funding as projects show potential for saving money and improving services.
This method has already been tested successfully with the government’s generative AI chatbot, GOV.UK Chat, which showed the ability to deliver high-quality results through a better funding model.
Measuring the success of digital projects
The government is also set to introduce new metrics to measure the success of major digital projects.
This will help guarantee that taxpayer funds are spent efficiently and that projects deliver real value for money. By prioritising outcomes, the government hopes to avoid the common downfalls of overblown digital systems that fail to meet expectations or provide good returns.
Ensuring technology is up-to-date
An important part of the review is addressing the issue of outdated technology in government departments.
Research revealed that one in four digital systems used by central government are outdated, with some organisations experiencing even higher levels of technological decay. This out-of-date technology risks security and reliability and incurs high maintenance costs. In some cases, the government spends three to four times more on maintaining these outdated systems than it would if the technology was regularly updated.
By replacing these systems with more modern, efficient solutions, the government hopes to reduce costs and improve service delivery. For example, new AI tools could help speed up processes in the NHS, making it easier for patients to get appointments and reducing wait times. A new digital system will also support the police in tackling crime and improving public safety.
These changes coincide with the government’s “Plan for Change,” which focuses on using technology to drive growth and improve public services.
The overhaul of digital funding processes is seen as a key part of this plan, allowing the government to build the tools needed to meet the needs of businesses, healthcare providers, law enforcement, and citizens.
