The public sector in the UK is encountering mounting pressure to adopt artificial intelligence (AI) and contemporary digital solutions, but a recent report indicates that numerous governmental departments are constrained by obsolete systems, isolated platforms, and persistent underfunding.
A study carried out by customer experience company 8×8 alongside consultancy Cavell Group has shown that, despite political leaders promoting the potential of AI to enhance services and boost citizen involvement, the essential digital foundations for broad implementation are severely deficient.
Over 80 percent of the public entities surveyed express intentions to switch their contact centre providers in the forthcoming two years, signifying the urgency with which they seek more adept and effective digital frameworks. Yet the report reveals that the typical transition period for adopting a new provider exceeds one year, illustrating the slow speed of technological advancement in government.
A considerable number of public organizations continue to depend significantly on legacy communication systems that are poorly matched for integrating modern AI and machine learning tools. Approximately one-third of the organizations acknowledged they still use multiple, unconnected communication channels, adversely affecting service quality and efficiency while escalating risks related to cybersecurity, regulatory compliance, and data protection.
“Public bodies are indicating that they’ve reached a critical juncture,” remarked Joe McStravick, Vice President of EMEA Sales at 8×8. “Expectations from citizens and government are escalating quickly, but the technology and training required to fulfill them aren’t keeping up – and funding is a significant obstacle.”
Despite the ongoing heavy reliance on traditional communication methods like email, phone, and in-person meetings, there is an increasing demand for digital-first tools such as real-time messaging, mobile applications, and AI-augmented interfaces. Nevertheless, many public agencies struggle to meet these rising expectations due to a lack of suitable platforms capable of deploying these tools on a large scale.
Digital transformation within the public sector has been prioritized by the government. Earlier this year, Technology Secretary Peter Kyle stated: “Lingering technology has hindered our public services for too long, costing us significantly in both time and finances.”
The report highlights a stark disparity in AI preparedness throughout the UK’s public sector. While almost half of the respondents anticipate that new government policies will facilitate extensive AI adoption by 2028, and the majority expect substantial integration by 2030, few believe their current systems can accommodate such goals without significant upgrades.
This gradual advancement risks leaving the UK behind other nations that are ahead in establishing AI-ready public infrastructure. Countries like Estonia are frequently cited as global pioneers in digital governance, having successfully established interconnected digital identities and centralized public services utilizing AI and automation.
Particularly, public sector institutions in the UK worry that disjointed systems undermine their capacity to coordinate service delivery and securely share information. “Public sector teams strive to achieve better outcomes, but fragmented systems are holding them back,” stated Jamie Snaddon, Managing Director for EMEA at 8×8. He emphasized that advanced AI-driven platforms could enable “field teams to stay connected with one another and the individuals they serve.”
The government has recognized these deficiencies. In March, it announced a new plan to overhaul the functioning of public services through AI and digital platforms to enhance efficiency across departments. As reported by Gov.uk, this encompasses efforts to upgrade outdated systems and improve interdepartmental interoperability, as envisioned in its Transforming for a Digital Future roadmap.
One objective is to alleviate the administrative burdens faced by major public organizations. According to the government’s review released earlier this year, HM Revenue & Customs (HMRC) was managing over 100,000 phone calls daily, while the Driver and Vehicle Licensing Agency (DVLA) was dealing with more than 40,000 physical letters – two instances that illustrate the significant operational pressure on under-digitized departments.
While the findings from 8×8 and Cavell Group do not propose a universal solution, they underscore the growing agreement on the necessity for unified technological platforms capable of securely integrating AI to enhance service efficiency, responsiveness, and compliance.
However, if this progress halts, ministers risk failing to meet their digital transformation ambitions and further diminishing public trust in state institutions’ capabilities to provide modern, responsive services in the digital era.
