UPDATE — OCTOBER 2025: Since the Public Accounts Committee’s March 2025 report, DSIT issued its “AI in Government: Implementation and Governance Update 2025” in September, creating an AI Oversight Board chaired by the Secretary of State, introducing mandatory reporting so departments register all decision-making algorithms by mid-2026, and committing to embed assurance tools across government. Algorithmic transparency has improved: entries in the ATRS registry have risen from 33 to more than 80, with CDDO beginning audits to check accuracy.
On legacy tech, Treasury approvals in mid-2025 funded upgrades for 12 more high-risk systems, cutting the unfunded group from 21 to nine, and GDS plans cross-government compatibility reviews by spring 2026. Workforce gaps persist despite a Cabinet Office pay pilot expanding bands for digital and data roles in departments like HMRC and the Home Office, with shortages most acute in AI ethics, data engineering, and model evaluation. The broader regulatory track continues in parallel: the AI Regulation Bill remains under consultation, and DSIT with the ICO published AI assurance guidance in July 2025 emphasizing data governance and human review in public-sector automation.
ORIGINAL NEWS STORY:
UK Parliament Warns Government Risks Falling Behind on AI Adoption Without Urgent Reforms
A new report from the House of Commons Committee of Public Accounts warns that the UK government faces serious risks in its adoption of artificial intelligence (AI) unless it addresses outdated technology, poor data practices, and a persistent shortage of digital skills across departments.
Published in late march, the report emphasizes AI’s potential to transform public services by automating tasks, improving efficiency, and targeting support more effectively. However, the committee concludes that progress remains slow and uneven, with the country at risk of missing out on the benefits of AI if significant reforms aren’t enacted soon.
A central concern is the government’s reliance on outdated IT infrastructure. Of the 72 highest-risk legacy digital systems identified in a previous roadmap, 21 still lack funding for necessary updates. Without quality data and compatible systems, the committee warns, efforts to deploy AI will be hampered from the start.
In addition to technical barriers, the committee highlights a growing public trust gap. Only 33 entries had been recorded in the government’s algorithmic transparency registry as of January 2025, suggesting most departments are not disclosing their use of AI in decision-making. The Department for Science, Innovation and Technology (DSIT) was urged to strengthen public engagement and increase transparency to reassure citizens that AI use is safe, fair, and secure.
The report also takes aim at staffing challenges. According to survey data, 70 percent of government bodies cited difficulty hiring and retaining employees with AI skills. Half of all digital and data roles advertised in 2024 went unfilled. The committee remains skeptical that DSIT’s proposed reforms—such as boosting pay competitiveness and embedding digital leaders on executive boards—will close the skills gap.
Other areas flagged include a lack of knowledge sharing from AI pilot projects, a procurement process ill-suited to a fast-moving tech landscape, and a fragmented governance structure. The committee supports recent moves to consolidate AI leadership under DSIT but stresses that clear accountability, performance tracking, and ministerial coordination are essential.
To drive adoption forward, the report recommends a new implementation roadmap, robust transparency standards, scalable procurement frameworks, and the appointment of senior digital leaders across all departments.
Without these changes, the committee warns, the UK government may struggle to deliver efficient, responsible AI-enabled public services—placing both innovation and public trust at risk.
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If you’re concerned or have questions about how to navigate UK AI adoption plans or the global regulatory landscape, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight and ensure you’re informed and compliant.
