In March 2025, thousands of government leaders and civil servants gathered in London for Innovation 2025, a conference showcasing how governments worldwide are deploying new technologies and innovative approaches to improve public services. Central to the discussions was the rapidly advancing role of artificial intelligence (AI) in government operations, alongside pressing topics such as sustainability, fraud prevention, and mission-driven governance.

A ThoughtWorks-supported roundtable highlighted the cautious yet proactive stance many UK departments are taking toward AI. Participants outlined the government's ‘scan, pilot, scale’ strategy for deploying AI solutions, where technologies are first researched, then piloted on a small scale, and, if successful, scaled up across departments. This approach has shown particular promise in local governments, where a successful pilot in one borough can be expanded to others, although central government departments face challenges in adopting innovations pioneered elsewhere, often hindered by siloed structures.

The roundtable also underscored the balance governments must strike between building tailor-made AI tools and buying in solutions. Given capacity constraints in most departments, purchasing technology is often necessary in the short term, but a long-term vision is essential for sustainable AI integration. Assurance of data representativeness and continuous automated governance were identified as crucial in mitigating AI risks, especially as models evolve rapidly.

Building public trust in AI remains a vital area. Participants argued that governments have yet to have a meaningful conversation with citizens about what AI is and how it will affect public services. Transparent communication, storytelling through practical use cases—such as healthcare applications in the NHS—and clear disclosure of AI limitations are essential to avoid mistrust. These efforts also tie into the importance of digital identity systems as enablers of AI-driven transformation, though trust in government-led digital identities remains complex and requires careful management.

Sustainability was another major theme, reflecting the UK government's ambitious net zero targets, which Prime Minister Keir Starmer recently tightened for 2035. Government estates, many housed in historic and energy-inefficient buildings dating back to the early 20th century, face significant challenges in meeting these targets. Officials acknowledged progress, particularly through cross-government collaboration on energy standards and developing low-carbon technologies such as energy-efficient lighting and renewable energy installations.

One notable initiative is Great British Energy's plan to install rooftop solar panels on 200 schools and 200 hospitals, aiming to reduce energy costs and carbon footprints. Complementing this, a substantial government investment of £630 million is planned for broad clean energy upgrades across public buildings, including schools and community centers, expected to generate annual savings exceeding £650 million. These efforts represent concrete steps toward greener public infrastructure and the government's commitment to sustainability.

Central to achieving government missions—ranging from economic growth and NHS reform to crime reduction and clean energy leadership—is the need for a fundamental ‘rewiring’ of civil service structures and culture. Officials admitted to collective optimism biases and risk aversion that impede innovation, often defaulting to incremental adjustments rather than transformative change. They highlighted the importance of leadership in providing clarity amid the inherent ‘fogginess’ of mission delivery, and noted that lessons from COVID-19’s rapid response showed the value of calibrated risk-taking and fast decision-making.

Artificial intelligence also plays a pivotal role in this transformation, but the challenges go beyond technology. According to another session, human roles across government will need to adapt fundamentally in the AI era—not eliminating people but reshaping their work. Participants stressed the need for a ‘risk-smart’ culture that overcomes instinctive resistance to change while prioritising rapid evaluation and culling of non-viable projects to focus resources effectively.

The deployment of AI is not without controversy. Recent developments in the US federal government have brought both opportunities and risks into sharp relief. The White House’s directive requiring agencies to appoint chief AI officers and accelerate adoption signals a shift towards innovation-centric policies, stepping away from previously stricter Biden-era controls. However, experts have voiced concerns about reckless AI application potentially harming vulnerable populations, increasing inefficiencies, and raising privacy and security risks.

In the UK, tackling welfare payments fraud—a sector estimated to cost nearly £10 billion annually—has driven interest in digital identity verification and digital disbursement innovations. Roundtable discussions revealed that linking digital credentials to specific services, rather than broad national ID systems, improves user convenience and acceptance. Moreover, biometric technologies assist in building trusted identities for those lacking traditional documents, even as governments debate data-sharing protocols that balance efficiency, privacy, and user control.

On the operational side, upskilling is critical to maximise AI’s benefits while avoiding the risk of de-skilling essential capabilities like critical thinking and policy development. Governments are emphasising workshops and small pilot projects to demystify AI, identify applicable use cases, and embed governance without creating new bureaucratic layers. Participants called for an approach that integrates AI into core systems rather than treating it as a separate add-on.

Finally, innovation remains a core driver for meeting economic and social objectives. The UK is recognized for generating innovative ideas, but the critical hurdle lies in scaling and embedding these innovations across government. Leadership plays a major role in fostering a culture where innovation is everyone’s responsibility, and learning from failures is valued rather than penalized. The pandemic era demonstrated government’s ability to innovate under pressure, and many attendees expressed optimism about leveraging these lessons to build a more adaptive civil service going forward.

Innovation 2025 illustrated that governments are navigating a complex landscape where AI, sustainability, mission-focused governance, and fraud prevention intersect. Success will require bold leadership, cultural shifts, strategic upskilling, and open dialogue with citizens to realise the full potential of technological and organisational transformation in the public sector.

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Source: Noah Wire Services