The Power of AI in the Public Sector: Partnering for Scaled Success
Guest blog by Vaska Vasilovsla, Associate Director at Larkspur International #techUKdigitalPS
Vaska Vasilovsla
Associate Director, Larkspur International
AI is already changing the way government works. From predicting demand on public services to improving access to information, artificial intelligence is enabling smarter, faster, and more efficient delivery across the public sector.
But to fully realise its potential, the UK must move beyond pilots—and into scale. That requires bold leadership, agile thinking, and deeper collaboration between government and industry.
In this blog, we explore how AI is already being used in departments like the DWP, MoD and HM Treasury—and how industry can play a pivotal role in supporting government to fast track adoption, responsibly and effectively.
AI in Action: Transforming Government Services
Artificial intelligence is already at work in UK public services:
The Department for Work and Pensions (DWP) uses machine learning to detect fraud and error in the benefits system, helping protect public funds while speeding up claims for those who need them most.
The Ministry of Defence (MoD) applies AI in logistics and decision-support tools, improving operational readiness and resource allocation.
At HM Treasury (HMT), AI is being explored for data analysis and forecasting to support economic modelling and budget planning.
These use cases demonstrate how AI can help government deliver more services without increasing spending—making smarter use of existing budgets, infrastructure and data.
Why Now? From Pilot to Scale
The UK government has launched a range of AI pilots across departments in recent years. But pilots alone won’t deliver transformational outcomes. To unlock AI's full potential, public services must scale these efforts across domains, organisations and geographies.
This is no small task. Departments face real challenges—legacy systems, data fragmentation, limited in-house expertise, and public concerns around transparency and ethics. Nevertheless, Labour’s government has committed to utilising AI and technology to expand on citizens services and reduce borrowing.
This is where the right industry partnerships become critical.
How Industry Can Support AI Adoption at Scale
Co-create scalable solutions
Vendors must go beyond off-the-shelf products and work collaboratively with departments to build scalable, interoperable solutions. These must align with government digital architecture and data governance frameworks.
Embed transparency and trust
AI in public services must be explainable and accountable. Industry must help build solutions that are not only powerful but understandable—to both civil servants and citizens.
Invest in upskilling the workforce
AI should be something civil servants can use confidently. Industry partners can support capability-building through training, co-location of teams, and knowledge-sharing across departments.
Enable shared services and reuse
Many AI use cases—fraud detection, document summarisation, citizen engagement—are common across departments. Reusable models and shared platforms can unlock cost savings and consistency.
Support agile procurement and delivery
Traditional procurement models often stifle innovation. New frameworks such as AI Dynamic Purchasing Systems (DPS) and outcome-based contracts can help industry and government work together more flexibly and effectively.
Real-World Impact: Benefits for Citizens and Civil Servants
The benefit of AI isn’t just better backend systems—it’s a better experience for the public.
Imagine:
Faster, more accurate processing of benefits and pensions.
Real-time translation and accessibility tools for digital services.
Proactive reminders for at-risk individuals to attend medical appointments or renew critical documentation.
Data-driven planning that ensures resources go where they’re most needed.
At the same time, civil servants are freed from repetitive tasks and empowered with better tools to do their jobs—reducing burnout, improving morale, and enhancing delivery.
What Success Looks Like: A Shared Mission for Scaled, Responsible AI
A successful AI-enabled public sector isn’t defined by the volume of models deployed—it’s measured by outcomes for people, and value for the taxpayer.
For Citizens: Simpler, Smarter, More Personalised Services
AI should make people’s interactions with government easier, not more complicated. Success means citizens can:
Access services 24/7 through intelligent chat and voice assistants.
Receive personalised guidance on benefits, tax, or immigration—tailored to their circumstances, not generic FAQs.
Get decisions faster, with fewer forms and handoffs.
Feel confident that their data is being used responsibly and securely.
For example, AI-driven triage in local government could route housing or social care cases to the right team instantly reducing delays for vulnerable people. In the NHS, generative AI tools might help patients understand follow-up instructions or symptoms in plain English. In education, automated systems could ensure eligible families don’t miss out on school meal subsidies.
That’s success: services that feel as intuitive and responsive as the best digital experiences in the private sector—yet are fair, accessible, and public in spirit.
For Civil Servants: Empowerment, Not Replacement
AI should not be seen as a replacement for public servants, but a force multiplier. A successful future is one where:
Routine, repetitive tasks—like data entry, case reviews, or redaction—are handled automatically.
Analysts and policymakers use AI-generated insights to make better, faster decisions.
Frontline workers are equipped with real-time recommendations and automated workflows to improve outcomes.
Staff have the skills, training, and confidence to work alongside AI as informed decision-makers.
This is already happening in pockets. In HMRC, automation supports fraud detection; in DWP, AI helps flag high-risk claims for human review. The next phase is ensuring these tools are safely and equitably rolled out across the whole workforce—supported by strong ethical frameworks and continuous feedback loops.
For Government: Scalable Efficiency and Better Policy
AI offers not just cost savings, but the chance to redesign service models around insight, foresight, and impact. In a fully AI-enabled government:
Departments share AI models, datasets, and platforms to avoid duplication and accelerate delivery.
Cross-departmental data collaboration supports whole-of-government priorities like net zero, levelling up, or public health.
Ministers and civil servants use simulations and policy modelling tools to forecast outcomes before laws are passed.
Transparency, auditability, and explainability are built into every algorithm from day one.
It’s not about technology for its own sake—it’s about how AI can support better, faster, and fairer government.
For the UK: A Global Leader in Ethical AI Use
Finally, success means positioning the UK as a world leader in the responsible and innovative use of AI in the public sector.
With the right frameworks—such as the UK AI Regulation White Paper, CDDO’s roadmap for data and digital transformation, and cross-government AI assurance standards—the UK can export not just AI technology, but governance models that others want to emulate.
This means being bold on innovation, but clear-eyed on risks. It means open collaboration between departments, regulators, academia, and the tech ecosystem. It means investing in both the tools and the people who use them.
In short: success means citizens benefit, civil servants are empowered, departments deliver more for less, and the UK sets the global bar for trustworthy AI.
This is within reach—but only if government and industry move forward together, at speed, and with purpose.
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Heather is Head of Central Government Programme at techUK, working to represent the supplier community of tech products and services to Central Government.
Prior to joining techUK in April 2022, Heather worked in the Economic Policy and Small States Section at the Commonwealth Secretariat. She led the organisation’s FinTech programme and worked to create an enabling environment for developing countries to take advantage of the socio-economic benefits of FinTech.
Before moving to the UK, Heather worked at the Office of the Prime Minister of The Bahamas and the Central Bank of The Bahamas.
Heather holds a Graduate Diploma in Law from BPP, a Masters in Public Administration (MPA) from LSE, and a BA in Economics and Sociology from Macalester College.
Ellie joined techUK in March 2018 as a Programme Assistant to the Public Sector team and now works as a Programme Manager for the Central Government Programme.
The programme represents the supplier community of technology products and services in Central Government – in summary working to make Government a more informed buyer, increasing supplier visibility in order to improve their chances of supplying to Government Departments, and fostering better engagement between the public sector and industry. To find out more about what we do, how we do this and how you can get involved – make sure to get in touch!
Prior to joining techUK, Ellie completed Sixth Form in June 2015 and went on to work in Waitrose, moved on swiftly to walking dogs and finally, got an office job working for a small local business in North London, where she lives with her family and their two Bengal cats Kai and Nova.
When she isn’t working Ellie likes to spend time with her family and friends, her cats, and enjoys volunteering for diabetes charities. She has a keen interest in writing, escaping with a good book and expanding her knowledge watching far too many quiz shows!
Junior Programme Manager - Central Government, techUK
Charles Bauman
Junior Programme Manager - Central Government, techUK
Charles Bauman is a Junior Programme Manager in the Central Government Programme at techUK.
He supports the programme’s mission to represent the technology supplier community to the UK government and advocate for digital innovation to address public sector challenges. Charles helps facilitate market engagement, foster partnerships, and ensure that tech suppliers and the government work collaboratively to improve outcomes, deliver value for money, and enhance public services for citizens.
Before joining techUK, Charles gained significant experience in research, analysis, and strategic advisory roles. At H/Advisors Cicero, he specialised in public affairs and corporate communications, while at Verdantix, he supported sustainability research and advisory projects, focusing on regulatory and environmental challenges.
Charles holds an MSc in Theory and History of International Relations from the London School of Economics and Political Science (LSE) and an MA in Medieval History from King’s College London.
Charles enjoys volunteering with a think tank, reading, hiking, and spending time with his dog and family outside of work.
Programme Team Assistant for Public Sector Markets, techUK
Francesca Richiusa
Programme Team Assistant for Public Sector Markets, techUK
Fran serves as the Programme Team Assistant within techUK’s Public Sector Market Programmes, where she is responsible for delivering comprehensive team support, managing administrative functions, and fostering strong relationships with members.
Prior to joining techUK in May 2025, Fran built a meaningful career in the charitable and local government sectors. She worked extensively with both victims and perpetrators of crime, and notably led the coordination of Domestic Homicide Reviews across Surrey—an initiative aimed at identifying lessons and preventing future incidents of domestic abuse.
Outside of work, Fran is an avid traveller and a proud cat mum who enjoys unwinding with her feline companions.
