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Whitehall’s ambition to cut costs using AI is fraught with risk

(5 months ago)
Robert Booth
Artificial intelligence (AI)TechnologyCivil servicePoliticsUKLabourTechnology sector

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The UK Labour government's push to use AI and data science to cut costs and improve public services, led by Prime Minister Keir Starmer and Science and Technology Secretary Peter Kyle, is facing scrutiny. While ministers see AI as a solution to crises in justice, health, and welfare, critics warn of 'dystopian outcomes,' public distrust of private tech firms, and the inherent risks of relying on technology for vulnerable citizens.

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  1. 1 2019: UK public sector tech contracts value was £14.4bn.
  2. 2 January 2025: Keir Starmer declared AI a way to transform public services.
  3. 3 June 2025: Ministry of Justice roundtable discussion; London Tech Week.
  4. 4 Late June 2025: Ada Lovelace Institute found public concerns about AI.
  5. 5 Early July 2025: Dragons’ Den-style event for tech companies pitching ideas for British justice system; Department of Health and Social Care announced an AI early warning system.
  6. 6 Within a decade: Wes Streeting aims for one in eight operations to be conducted by a robot.
  7. 7 2024: UK public sector tech contracts value rose to £19.6bn.
  • Potential for 'dystopian outcomes' if AI is misapplied in public services.
  • Public concern and distrust regarding AI use in sensitive areas (welfare, policing, healthcare).
  • Increased reliance on private tech firms for public service delivery.
  • Debate over 'build or buy' approach for government technology.
  • Potential for conflicts of interest between government and the technology sector.
What: The UK Labour government's strategy to integrate Artificial Intelligence (AI) and data science into public services to achieve cost savings and efficiency.
When: This week (early July 2025 - Dragons' Den-style event); last month (June 2025 - Ministry of Justice roundtable, London Tech Week); last week (late June 2025 - Ada Lovelace Institute findings); January 2025 (Keir Starmer's statement).
Where: Whitehall, UK (government); London (London Tech Week); Singapore, Estonia (countries embracing AI).
Why: To tackle acute crises in public services (prisons, healthcare, welfare), cut costs, improve efficiency, and transform public service delivery.
How: By issuing contracts to private tech companies (Google, Microsoft, Palantir, IBM, Amazon), developing AI early warning systems (maternity services), using robots for operations, AI for correspondence prioritization and fraud detection, and AI tools for political risk assessment.

The UK Labour government's push to use AI and data science to cut costs and improve public services, led by Prime Minister Keir Starmer and Science and Technology Secretary Peter Kyle, is facing scrutiny. While ministers see AI as a solution to crises in justice, health, and welfare, critics warn of 'dystopian outcomes,' public distrust of private tech firms, and the inherent risks of relying on technology for vulnerable citizens.