Starmer bets big on AI to unlock public sector savings

AI adoption could be a major boon for the UK and save taxpayers billions, according to prime minister Keir Starmer.

Speaking at a campus in Hull, Starmer spoke about how technology will help push through much-needed digital reform in government and potentially unlock £45 billion in savings.

The prime minister said the technology represents a “golden opportunity” for the government, enabling it to bolster efficiency across a wide range of services.

“You will already be thinking about how you use it in your work, and that's an opportunity we're determined to seize,” Starmer said.

“We're going to get the best of the best on AI working across government - I'm going to send teams into every government department with a clear mission from me to make the state more innovative and more efficient,” he added.

Starmer pointed to several example of where AI could help improve productivity and efficiency, including the automation of record-keeping in probation work.

He noted that the same is true for planning applications, in which huge amounts of information need to be gathered, a task that can be completed more quickly through AI.

The PM also talked up the importance of training and apprenticeships, remarking on the importance of apprenticeship schemes and how they will bring people into the government who are skilled in AI and tech.

“We're bringing people in to do this, to transform the way that we do our business,” Starmer said.

UK public sector on brink of change

Starmer's comments are the latest in a series of commitments from the Labour government to harness the technology and drive public sector efficiency.

Earlier this month, the UK’s Department for Science Innovation and Technology (DSIT) announced a reform to public sector funding that will aim to make the deployment of AI projects quicker and easier.

Before that, the UK announced sweeping changes to the state of its ‘AI Opportunity Action Plan,’ a piece of legislation designed to support and bolster AI use across the country.

The action involved the creation of ‘AI growth zones’ in which planning permission for AI infrastructure will be fast-tracked, as well as a focus on how AI can drive efficiency in the public sector in administration.

Research from Google Cloud in November last year estimated that AI and automation may be able to save the UK government £38 billion in staff time and costs by 2030.

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