AI essential to cutting ‘flabby’ state, says Starmer

But new initiative could add, not reduce, complexity, say experts

The UK Government’s commitment to integrating AI into the civil service is being met with cautious optimism from industry leaders, who recognise both the potential and the risks of such a move.

Prime Minister Keir Starmer’s pledge this week to reshape the “flabby” British state, incorporating AI to drive efficiency and streamline public sector operations, has been welcomed as a step towards modernisation. However, experts warn that without careful planning, the initiative could add complexity rather than reduce it.

AI as a public sector game-changer

James Hall, VP and country manager UK&I at Snowflake, emphasises that AI’s success in the public sector hinges on the quality and accessibility of data.

“AI systems are only as powerful as the data they’re trained on, making high-quality, accessible data essential,” Hall explains.

“Rather than tackling new technology on a case-by-case basis, the government should focus on AI governance frameworks that proactively address challenges such as privacy and autonomy. Data sharing across trusted ecosystems will ensure AI use is accountable, free of bias, and measurable.”

Damian Stirrett, group VP & GM UK & Ireland at ServiceNow, believes the public sector has much to learn from private enterprises already benefiting from AI:

“The private sector is proving what’s possible - AI-driven automation is cutting error rates by up to 50% and reducing casework time by over a third,” he notes. “Investing in agentic AI will be central to a successful and sustainable transformation.”

ServiceNow, perhaps unsurprisingly, has been pouring money into agentic AI.

Balancing investment with implementation challenges

While the government’s AI push is backed by rising investment, challenges remain. Ian Jeffs, UK&I Country GM at Lenovo Infrastructure Solutions Group, highlights that UK spending on AI has surged 84% since 2024, reflecting shifting priorities across both private and public sectors:

“However, while investment and confidence in AI grow, critical challenges persist around training staff, poor data quality, and scaling initiatives. The government must implement impactful AI solutions that showcase ROI and turn words into actionable outcomes.”

Rupal Karia, GM – UKI & MEA at Celonis, warns of the risk of adding layers of complexity rather than improving efficiency.

“Government systems are complex, with vital information being shared across disparate systems. Quick wins in automating outdated processes can free up civil servant time, but AI can only be as effective as the data supporting it,” he said.

“Without getting the processes and data in order first there is a risk of the government adding another layer of complexity to the civil service instead of easing workloads and saving costs.

A high-stakes digital transformation

Starmer’s AI-driven state reform is set against a backdrop of economic and geopolitical challenges. His government is facing resistance from trade unions and within his own party over concerns that "reshaping the state" could lead to job losses and funding cuts.

At the same time, AI is being positioned as a tool to deliver efficiency gains, particularly within healthcare and public administration.

With plans to ensure that one in ten civil servants has a tech or digital role within five years, the UK government is making a bold bet on AI’s role in the future of governance.