UK Government Procurement 'Outpaced by AI'
Traditional U.K. government procurement models are limiting the value of AI, according to consulting firm Baringa, as reported by Civil Service World. Experts are urging a shift towards more flexible, "plug-and-play" procurement methods to avoid slowing the adoption of new technologies. The current system is seen as too rigid to accommodate the rapid evolution of AI tools.
- The UK government's AI Opportunities Action Plan proposes a "Scan > Pilot > Scale" model to accelerate AI adoption, aiming to help startups navigate complex public procurement processes. This initiative is designed to overcome the fragmented adoption of new technologies often seen across different public bodies like local authorities and NHS trusts. - A significant barrier to AI adoption is the prevalence of legacy IT systems, with an estimated 28% of central government systems considered "end-of-life" in 2024. A third of these high-risk legacy systems still lack the necessary funding for remediation, which directly impacts the data quality essential for effective AI implementation. - In January 2025, a new Government Digital Service was created under the Department for Science, Innovation and Technology (DSIT) to unify AI efforts. This brought together the Central Digital and Data Office (CDDO), the Incubator for AI (i.AI), and the existing Government Digital Service to strengthen leadership on digital transformation. - Persistent digital skills shortages hinder progress, with around 50% of roles in civil service digital and data campaigns going unfilled in 2024. Furthermore, 70% of government departments reported difficulties in recruiting and retaining staff with the necessary AI skills. - The recently enacted Procurement Act 2023, which took effect in February 2025, is intended to simplify purchasing processes and introduce more flexibility, such as the Competitive Flexible Procedure. This reform is seen as a key enabler for adopting more innovative, AI-focused procurement methods. - There is a recognized over-reliance on a small number of large technology suppliers, which risks stifling competition and innovation in the AI market. To counter this, the government plans to move away from rigid commercial frameworks where possible, aiming to reduce barriers for smaller, less established AI vendors. - The government has been testing AI procurement guidelines developed with the World Economic Forum since 2019. These guidelines advise procurement processes that focus on problems and opportunities rather than prescribing specific solutions, allowing for more iterative and innovative approaches. - A report from the Public Accounts Committee (PAC) highlighted slow progress in transparency surrounding the government's use of algorithm-assisted decision-making. This lack of transparency is a key hurdle to building public trust, which is considered crucial for the successful and widespread adoption of AI in public services.
