STORY
The UK government is set to revolutionise its approach to funding digital and AI projects within the public sector, aiming to inject a “start-up” mentality into its operations. A recent review highlighted that existing funding procedures are excessively intricate, causing delays and stifling innovation, particularly in experimental technologies like AI. To address this, the government plans to simplify funding approvals and implement a staged funding model, where projects begin with small budgets and scale based on proven success.
This overhaul, scheduled to begin in April, will test four new funding approaches, drawing inspiration from the success of the GOV.UK Chat chatbot. The initiative seeks to replace outdated technology, enhance public services, and reduce taxpayer waste by prioritising efficiency and innovation. Furthermore, the government will introduce new outcome metrics and evaluation plans to ensure projects deliver value for money. Technology Secretary Peter Kyle emphasised the need to move away from “decades old” processes that have encouraged short-sighted thinking and outdated technology. Chief Secretary to the Treasury, Darren Jones, highlighted the urgency of digital transformation, citing research that revealed a significant portion of government digital systems are outdated, leading to increased costs and security risks.