UK Public Sector and Administrations companies are taking a cautious approach to AI implementation, requiring acceleration to become a fully augmented organisations

Based on a recent BearingPoint study of over 700 C-Suite level executives globally, the UK Public Sector remains cautious and more hesitant towards AI adoption compared to the private sector.  Approximately half of respondents (53%) remain either Skeptics or AI Cautious with the other (47%) AI Enthusiasts or Experimenters. Despite these reservations, many respondents are aware of AI initiatives across the public sector. Initiatives at the centre of the UK government have sought to drive improved productivity through AI and within areas like the NHS, there is hope for potential gains.

UK Public Sector and Administrations C-Suite's Position and Attitude in Organisation towards AI Transformation

AI adoption in the public sector is still at an early stage, with only 13% of respondents actively adopting AI technologies, while 54% are just beginning to consider or explore AI initiatives.  The results align with a recent NAO survey that found 70% of government bodies were piloting or planning the use of AI.  The sector lags behind other industries in implementation, with 54% of organisations having no AI deployments or only just starting to consider AI technologies.

This reflects a cautious stance on AI, with only 3% of respondents believing AI will have a transformational impact over the next 5-10 years — the lowest rate among all industries surveyed.

Significant concerns impede progress, with the top issue being a talent gap for skilled personnel (80%) where public sector organisations struggle to compete with the leading AI companies to attract and retain experts.  Data privacy and security (73%) is also perceived as a considerable blocker. When one imagines the nature of data collected by healthcare professionals compared to private sector companies, this is unsurprising.  Sharing publicly held data of this type to train AI algorithms must rightly comply with specific data sharing rules and regulations.

Other challenges include navigating ethical considerations specific to AI technologies (33%) and addressing concerns about job displacement by AI (33%). Additionally, 33% of organisations are still determining the best approach to governance and decision-making for AI-driven initiatives. 

The breadth of potential use cases for AI in the public sector drives these concerns.  There are many use cases to automate administrative processes which do not raise any obvious ethical issues.  However, ambiguity on the potential future use of algorithms remains a source of concern.  Involving AI in decision-making, even in an advisory role, requires much greater thought, key principles and public engagement to build trust on their use.

Without a strategy or direction on the potential use of AI, many public sector organisations have initially focussed on training their staff to manage potential risks.  Only 37% of organisations report having a well-documented strategy for AI adoption, despite 63% conducting regular training on AI.

Furthermore, 46% of organisations are actively adopting and implementing AI technologies, yet many lack a formal change management strategy, suggesting a gap between training efforts and strategic alignment.

Among the more advanced organisations, there is a focus on improving productivity and efficiency gains, alongside considerations for AI maturity and related risks when prioritising AI initiatives.  Recent HM Treasury documents have highlighted the opportunities for productivity gains through AI within public services and use cases within healthcare show the potential to drive improved treatment through advanced image analysis and other technologies.  However, with a significant portion of C-suite executives (53%) remaining cautious or skeptical about AI-driven transformation, more compelling evidence of AI's potential benefits and a more robust approach to governance will be critical.

In summary, while there is significant interest of AI in the UK Public Sector, concerns around ethics and data privacy and the lack of access to top skills, are consistent barriers to the effective use of AI across the sector.  Development of internal capability, governance and a regulatory framework that’s supports AI will be critical to accelerating the benefits from AI, even in areas where AI is an automation tool rather than a contributor to decision-making or co-deliverer of public services.

Please note all data is rounded to the nearest whole number

Download UK Public Sector and Administrations Insights

  • UK Public Sector and Administrations Augmented Organisation Landscape Infographic
    UK Public Sector and Administrations Augmented Organisation Landscape Infographic 496.51 KB Download
  • UK Public Sector and Administrations Augmented Organisation Portrait Infographic
    UK Public Sector and Administrations Augmented Organisation Portrait Infographic 620.81 KB Download
Are UK companies ready for AI-driven transformation?

Are UK companies ready for AI-driven transformation?

The UK market is at a pivotal moment in its journey toward Artificial Intelligence (AI) adoption, with a landscape marked by both cautious optimism and emerging enthusiasm.

Read full UK insights
Transitioning into an Augmented Organisation
Insights

Transitioning into an Augmented Organisation

In the rapidly evolving market, becoming an augmented organization is not just a strategic objective but a matter of survival. BearingPoint’s study, “AI-driven transformation: Becoming an augmented organization", emphasizes the critical need for businesses to leverage artificial intelligence (AI) and other emerging technologies to enhance capabilities, improve operational efficiency, and reinvent customer and employee experiences. Based on insights from 700 C-suite executives across Europe, the US, and Asia, the study highlights the urgency and strategic imperatives for transitioning into an augmented organization.