UK Government’s AI strategy aims to cut civil service jobs and enhance efficiency

26 March 2025

The UK Government's initiative to reduce civil Service jobs while leveraging artificial intelligence (AI) for improved efficiency has ignited discussion among industry experts. Targeting over £2 billion in savings by the end of the decade, many believe that AI technology plays a crucial role in achieving these financial goals.

Kyle Hill, Chief Technology Officer at digital transformation firm ANS, emphasized the importance of a comprehensive strategy for AI adoption within the public sector.

"To unlock AI's potential, the UK Government needs a clear plan for adoption and enablement," said Hill. He highlighted the necessity for regulatory compliance, data preparation, and workforce training to ensure that AI can be embraced by public sector employees rather than feared.

Illustrating the potential benefits, Hill cited the example of planning permissions, which are often delayed due to complex processes and backlogs. He argued that AI could streamline decision-making, thereby accelerating the construction of new homes. Moreover, when integrated effectively with government workers, AI can go beyond mere efficiency, ultimately enhancing citizen experiences.

Katie Baker, Director for the UK & Ireland at Tandem Health, discussed AI’s critical role in the face of budgetary pressures. Management cuts necessitate transformative operational changes.

"We're seeing the impact of AI tools that automate time-consuming admin tasks,” said Baker, who highlighted AI's effectiveness in healthcare administration, specifically through the use of medical scribes that reduce the documentation burden on doctors, allowing them to focus more on patient care.

Experts agree that significant efficiencies could be unlocked through AI integration in public services, potentially redistributing resources to vital areas such as education, healthcare, and law enforcement. Baker noted practical applications of AI in medical settings, where such technology is already enhancing notetaking and overall accuracy, subsequently improving healthcare service delivery.

A challenge that Hill identified is the difficulty in measuring AI's success within organizations. Currently, metrics tend to focus on individual productivity and decision-making improvement. As AI adoption matures, organizations must ensure that their success metrics are aligned with their readiness for safe, trustworthy, and ethical AI deployment.
The Government's ambitious fiscal approach, combined with advanced technologies, represents a paradigm shift in public sector operations. Both Hill and Baker suggest that while immediate cost savings are crucial, a long-term vision is essential — one where AI not only supplements services but also fundamentally transforms their delivery.

This move to reduce administrative overheads through AI integration aligns with a broader strategic goal: to enhance frontline services in education, healthcare, and law enforcement. These efforts aim not merely to maintain service levels but to improve them through intelligent resource allocation.