Generative AI Could Save UK Public Sector £38 Billion Annually

A study conducted by Public First on behalf of Google Cloud reveals that the implementation of generative artificial intelligence (AI) in the United Kingdom‘s public sector could save approximately £38 billion annually over the next five years.

The automation of routine tasks emerges as a cornerstone of AI’s potential. The report asserts that over a third of daily tasks within the public sector could be performed using such technologies. According to the findings, 61% of public sector employees are overwhelmed by their workloads, and 70% report declining morale. However, only 12% of public administration workers have significantly integrated AI into their processes.

The application of generative AI could yield transformative benefits, such as reducing healthcare wait times by an amount equivalent to 3.7 million additional doctor appointments, reallocating resources comparable to 160,000 police officers, and increasing the student-to-teacher ratio by 16%. The cumulative economic impact is projected to reach £358 billion by 2034, liberating 8.3% of the national budget for reinvestment in public services.

The report forecasts that 56% of public sector roles could be enhanced through AI, enabling employees to focus on more creative and strategic tasks. Meanwhile, 38% of roles are expected to remain unaffected due to their specialized nature, and 6% could be fully automated.

However, the adoption process faces several challenges. Over 55% of respondents highlighted the need for improved data structures to effectively leverage AI. Concerns were also raised regarding security, legal liabilities, and the high cost of the technology. Furthermore, nearly a third of participants cited a lack of skills necessary to work with AI systems.

The report also addresses the environmental implications, emphasizing the substantial energy and cooling demands of AI infrastructure. These factors not only impact sustainability but may also conflict with climate protection goals.

Google Cloud envisions the public sector as a pivotal driver for AI adoption across other industries. Recommendations include assessing technological readiness in healthcare, transportation, and education, modernizing outdated IT systems, enhancing workforce training, and improving procurement management.