The government is to transform the way it funds and manages AI experiments and digital projects, hoping to cut wasteful spending, drive innovation, and provide more efficient public services as part of its Plan for Change.
After a review highlighted that complex funding and approval processes can slow innovation and keep outdated technologies in place, ministers plan to test four fresh approaches from April. These include “staged funding” for new ideas, allowing initiatives to be prototyped quickly and potentially scaled up if they demonstrate clear benefits.
A renewed focus on outcomes will see the government introduce improved performance metrics and evaluation plans for major digital schemes. The aim is to ensure that large chunks of investment do not end up supporting projects that fail to meet intended goals for taxpayers.
In tandem, an updated funding model for technology and cyber-security will be trialled to tackle excessive maintenance costs associated with antiquated systems. Research shows that one in four IT systems used by central government is out-of-date, rising to seven in ten for the hardest-hit bodies. These unreliable setups can be markedly more expensive to maintain and pose greater security risks.
Technology Secretary Peter Kyle, speaking at techUK, is set to announce the reforms. He said: “Technology has immense potential to build public services that work for citizens. But a decades-old process has encouraged short-sighted thinking and outdated tech, while stopping crucial innovation before it even gets going.
“We will help give AI innovators in Government the freedom they need to chase an exciting idea and build prototypes almost immediately. This review will help us build technology that means businesses can skip the admin and get on with driving growth … and it will mean we can build new tools to speed up wait times for doctors’ appointments and get the NHS back on its feet.”
Darren Jones, Chief Secretary to the Treasury, added: “This Government is determined that digital transformation of the state and our public services will deliver better outcomes for people, and ensure every pound of taxpayers’ money is spent well.”
Beyond the trial approaches, the government is aiming to adopt a “digital first” approach for the next Spending Review in 2025. This strategy will see top-tier digital priorities inform how funds are allocated to different departments. Bespoke training is also planned to help civil servants make the strongest case possible for digital spending, ensuring public money is targeted where it can bring genuine transformation and savings.
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Government to shake up AI funding rules to drive innovation and cut waste
