New research suggests that generative AI could provide a new opportunity for the UK public sector, potentially saving up to £38 billion annually by 2030
The study, commissioned by Google Cloud and conducted by Public First, shows the potential of AI to reduce long-standing pressures in public services such as healthcare, education, and law enforcement.
The benefit of AI in the public sector
The report builds on previous research that suggests that generative AI could contribute over £400 billion to the UK’s economy by 2030, driven by productivity gains across various sectors.
The public sector, however, is expected to benefit the most from AI adoption, with potential savings being reinvested into key services used to reduce future tax rises.
AI’s potential to transform the public sector is mostly down to its ability to automate routine tasks and improve efficiencies.
A more efficient world with AI
The study found that up to a third of daily tasks in public administration could be taken over by AI. Tasks such as filling out paperwork, conducting basic data analysis, and transcribing meetings could be streamlined, freeing up time for public sector employees to focus on more impactful work.
AI doesn’t just save time but the research also suggests that better use of AI could have a direct impact on service quality. For instance, it could enable an extra 3.7 million GP appointments annually, allow a 16% increase in teacher-to-student ratios, and even free up the equivalent of over 160,000 police officers for frontline duties.
These improvements could help ease the growing pressures faced by essential public services, where staff workloads are increasing.
AI becoming a daily tool for public administration workers
The report also reveals that while the majority of public administration workers acknowledge the potential of AI, adoption is still in its early stages. Only 12% of public administration managers said they had significantly deployed AI tools, and 23% of workers use AI tools regularly.
Among female employees aged 45 and above, the figure drops to 15%. This shows a significant gap between the recognition of AI’s potential and its practical implementation.
To fully capitalise on the benefits of AI, the report outlines several key recommendations for the UK government.
- First, it calls for better integration and structuring of public sector datasets. Over half of public sector managers believe improved access to structured data would enable more effective AI adoption.
- Second, the government is advised to provide clearer legal guidance on AI usage, as regulatory concerns remain a barrier for many public sector leaders.
- Finally, there is a suggestion to invest in upskilling the workforce. Only 34% of managers feel confident that their teams possess the necessary skills to leverage AI effectively.
AI, in the long run
As AI technology grows and the public sector infrastructure catches up, significant innovations are expected. In the short term, AI will likely focus on reducing administrative burdens, but in the longer term, it could redesign public sector roles and services, driving greater efficiency and reducing waste.
While the idea of widespread AI adoption in the public sector may take time, the financial and operational benefits could be substantial. By harnessing AI, the UK could address pressing budget and staffing challenges, improve service delivery, and create a more efficient, future-proof public sector.
AI is expected to work best when existing public sector datasets are linked together. The central government should also work on identifying key potential use cases for AI and giving clear guidance on how to safely, securely, and legally implement them.
