Generative AI could revolutionize the public sector, saving up to £38 billion annually by 2030, according to new research.
By automating routine tasks, AI has the potential to cut costs and increase efficiency in various government departments significantly.
The UK public sector, in particular, stands to benefit the most from adopting AI tools to reduce administrative work and empower workers.
AI’s Potential to Automate Public Sector Tasks
One of the primary ways AI could benefit the public sector is by automating repetitive administrative tasks. Generative AI can handle data processing, document management, and other routine activities, freeing up employees to focus on more creative and impactful work.
Currently, over 61% of public administration workers report feeling overworked, and more than 70% agree that employee morale is declining. AI could help alleviate these pressures by taking on some of the workload.
The research, commissioned by Google Cloud, indicates that up to 38% of daily tasks in the public sector could be automated using AI tools. This would allow for more efficient use of resources and create a ripple effect across various industries.
For instance, freeing up administrative time could result in 3.7 million additional GP appointments, or the equivalent of 160,000 more police officers working in the field.
The benefits could also extend to the education sector, improving student-teacher ratios by 16% by reducing administrative burdens on teachers.
The Future of Work in the Public Sector
The AI & The Public Sector report predicts that more than half of public sector jobs (56%) will be “augmented” by AI in the coming years. This doesn’t mean widespread job losses; rather, workers will be able to spend more time on high-value tasks like problem-solving and decision-making.
However, AI will impact certain roles, with some positions being phased out due to automation. About 38% of jobs will remain unaffected due to their sensitive nature, while 6% of roles may be displaced entirely.
AI will also lead to the creation of new job categories, especially in the areas of AI maintenance and oversight.
Google Cloud suggests that as technology evolves, displaced workers can be retrained for other roles, ensuring that the demand for labor in the public sector remains strong.
Overcoming Barriers to AI Implementation
Despite the promising potential of AI, there are still significant barriers to its widespread adoption in the public sector. One major challenge is the lack of structured and reliable data.
More than half of the respondents in the report (55%) believe that improved data organization and quality are essential for effectively utilizing AI tools.
Additionally, a large number of workers feel uncertain about the security, costs, and legal implications of AI implementation.
Education and upskilling will play a crucial role in overcoming these hurdles. A third of public sector workers (34%) report that they currently lack the skills necessary to use AI effectively.
Over time, as AI tools become more refined and accessible, many of these concerns are expected to diminish, making it easier for public organizations to adopt the technology.
The Role of Government in AI Adoption
Governments play a pivotal role in driving AI adoption across the public sector. By conducting AI assessments in key sectors like healthcare, education, and transportation, governments can identify the barriers to implementation and find solutions.
A significant overhaul of legacy IT systems and data storage infrastructure will be required to make full use of AI technology.
In order to support AI adoption, procurement teams must also be upskilled in AI technologies to ensure they are selecting the best solutions for their departments. This proactive approach will help the public sector move towards a more efficient, AI-driven future.
The Environmental Cost of AI
While the potential financial savings from AI adoption are considerable, it’s important to recognize the environmental impact of the technology.
AI requires large amounts of energy to function, and high-performance hardware needs significant cooling, consuming vast quantities of water.
The AI industry already faces sustainability challenges, and scaling it across the public sector could further strain climate protection goals.
