Technology

UK government accelerates £45 billion savings plan with AI-driven civil service overhaul

Friday, 12 September 2025 4:09AM UTC

The UK government ramps up its use of AI tools across civil service departments, aiming to save £45 billion through modernised digital services and increased productivity, backed by significant research investments and strategic partnerships.

The UK government is pressing ahead with plans to save up to £45 billion in the Civil Service through the deployment of artificial intelligence (AI), particularly in software development and programming. This initiative, championed initially by former technology secretary Peter Kyle and now overseen by business secretary Liz Kendall, aims to modernise public services while cutting costs amid wider pressures for government efficiency.

According to a Department for Science, Innovation and Technology (DSIT) spokesperson, around 1,000 technology professionals spanning 50 government departments have been trialling approved AI coding assistants like Google's Gemini and GitHub Copilot. Early results suggest these tools are saving workers approximately one hour per day—the equivalent of 28 working days per year. These AI tools are chiefly used to draft or review code, with engineers typically editing the AI-generated outputs carefully: only 15% of the generated code is reportedly used without modification. This cautious approach reflects ongoing concerns about the accuracy and reliability of AI outputs requiring expert oversight.

Technology Minister Kanishka Narayan highlighted the need for government services to catch up with technological advances, viewing AI as a critical means to improve both efficiency and service quality. "For too long, essential public services have been slow to use new technology," he said. The potential savings are substantial, especially as all departments face demands to identify efficiencies ahead of the next budget.

A complementary government-led trial involving over 20,000 civil servants with generative AI tools such as Microsoft 365 Copilot demonstrated average time savings of nearly 26 minutes per day per individual, equating to nearly two weeks of additional worktime annually. This efficiency boost allows civil servants to redirect effort towards higher-value activities and innovation, supporting the government’s broader Plan for Change to modernise public services through digital transformation.

The £45 billion savings goal aligns with findings from a recent analysis highlighting that archaic technology within the public sector currently hampers productivity and results in significant taxpayer costs. Government reforms therefore seek to replace outdated systems with more agile, AI-powered solutions that can transform service delivery across healthcare, infrastructure, welfare, and beyond.

In parallel with internal government trials, the UK is investing substantially in AI research and safety measures. Recent commitments include £54 million earmarked for trustworthy and secure AI research, with projects led by academic centres such as the University of Southampton. This funding aims to advance responsible AI practices and address ethical and societal challenges. Additionally, £8.5 million has been allocated for studies focusing on AI safety risks, including threats like deepfakes and cyberattacks. These research investments underscore the government’s recognition of AI’s dual role as a driver of innovation and a technology requiring careful regulation.

Industry voices are positive about the government’s approach. Tara Brady, president of Google Cloud Europe, the Middle East, and Asia, praised the trial's success with Gemini’s Code Assist, underscoring the collaboration between public and private sectors in enhancing productivity and coding problem-solving.

This AI adoption push also forms part of a broader government strategy to test innovative applications across various sectors, supported by £7 million in funding for 120 projects spanning agriculture, retail, and infrastructure maintenance. The 'test and learn' funding model aims to accelerate innovation while managing risks and minimising wasteful spending.

Despite this momentum, challenges remain. Expert oversight remains crucial to verify, edit, and debug AI-generated code, indicating that time saved on drafting can sometimes be offset by quality assurance efforts. Nonetheless, the combination of efficiency gains, technology investment, and strategic partnerships suggests a determined effort to harness AI’s potential in public services and deliver significant fiscal savings.

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Source: Noah Wire Services

More on this

https://www.coastfm.co.uk/news/politics/govt-still-hoping-for-45bn-in-savings - Please view link - unable to able to access data
https://www.gov.uk/government/news/landmark-government-trial-shows-ai-could-save-civil-servants-nearly-2-weeks-a-year - A government-led trial involving over 20,000 civil servants demonstrated that using generative AI tools, such as Microsoft 365 Copilot, can save an average of 26 minutes per day per person. This equates to nearly two weeks of time saved annually, allowing civil servants to focus more on higher-value tasks and innovation. The trial's success supports the government's Plan for Change, aiming to modernise public services and achieve £45 billion in savings through technological advancements.
https://www.gov.uk/government/news/archaic-tech-sees-public-sector-miss-45-billion-annual-savings - A report revealed that outdated technology in the public sector is hindering productivity and costing taxpayers £45 billion annually. The findings highlight the need for modernisation to improve public services and efficiency. The government plans to address these issues by implementing reforms and leveraging digital technologies, including AI, to enhance service delivery and achieve significant savings.
https://www.gov.uk/government/news/government-puts-ai-to-work-for-bakers-road-workers-and-more - The UK government is funding 120 projects across various sectors to test how AI can boost productivity and efficiency. With £7 million allocated, these projects aim to harness AI's potential in areas such as agriculture, retail, and infrastructure maintenance. This initiative is part of the government's broader strategy to drive economic growth and modernise public services through technological innovation.
https://www.gov.uk/government/news/government-to-take-a-test-and-learn-approach-with-spending-on-ai-and-digital-to-push-innovation - The UK government is overhauling its funding approach for AI and digital projects to foster innovation and efficiency. By adopting a 'test and learn' strategy, the government aims to reduce wasteful spending and accelerate the development of new technologies. This initiative is part of the broader Plan for Change, which seeks to modernise public services and achieve £45 billion in savings through digital transformation.
https://www.gov.uk/government/news/54-million-boost-to-develop-secure-and-trustworthy-ai-research - The UK government has announced a £54 million investment to support AI and data science research, focusing on developing trustworthy and secure AI technologies. The funding will back groundbreaking research at the University of Southampton and other institutions, aiming to establish responsible AI practices and address societal impacts. This initiative underscores the government's commitment to advancing AI research and maintaining the UK's position as a tech leader.
https://www.gov.uk/government/news/tech-secretary-unveils-85-million-research-funding-set-to-break-new-grounds-in-ai-safety-testing - The UK government is offering up to £8.5 million in research grants to study AI safety, focusing on risks like deepfakes and cyberattacks. The funding aims to enhance society's resilience to AI-related challenges and harness its benefits, such as increased productivity. This initiative reflects the government's proactive approach to managing AI's impact and ensuring its safe integration into various sectors.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative aligns with recent UK government initiatives to integrate AI for efficiency gains, notably the £45 billion savings goal. The earliest known publication date of similar content is 12 March 2025, when Prime Minister Keir Starmer announced plans for a 'digital revolution' to reshape the British state, stating that digitizing public services and harnessing artificial intelligence could unlock £45 billion in annual productivity savings. ([bloomberg.com](https://www.bloomberg.com/news/articles/2025-03-12/starmer-sees-45-billion-savings-in-uk-push-into-digital-ai?utm_source=openai)) The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. Additionally, the article includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. ([gov.uk](https://www.gov.uk/government/news/landmark-government-trial-shows-ai-could-save-civil-servants-nearly-2-weeks-a-year?utm_source=openai))

Quotes check

Score: 7

Notes: The direct quotes from Technology Minister Kanishka Narayan and other officials are not found in earlier publications, suggesting potential originality. However, similar sentiments have been expressed by other officials in previous reports, indicating that the quotes may be paraphrased or based on prior statements. For instance, Technology Secretary Peter Kyle highlighted the findings in a keynote discussion at SXSW London, where he joined former Prime Minister Tony Blair to discuss reimagining government and public service delivery in the age of AI. ([gov.uk](https://www.gov.uk/government/news/landmark-government-trial-shows-ai-could-save-civil-servants-nearly-2-weeks-a-year?utm_source=openai))

Source reliability

Score: 6

Notes: The narrative originates from Coast FM, a local radio station, which may not be as widely recognised as major news outlets. However, the report references official government press releases and statements from reputable organisations, lending credibility to the information presented. The reliance on a single outlet for the narrative raises some uncertainty regarding the comprehensiveness and verification of the information.

Plausability check

Score: 8

Notes: The claims regarding AI's potential to save £45 billion in the UK public sector are plausible and align with recent government initiatives and analyses. For example, Prime Minister Keir Starmer announced plans for a 'digital revolution' to reshape the British state, stating that digitizing public services and harnessing artificial intelligence could unlock £45 billion in annual productivity savings. ([bloomberg.com](https://www.bloomberg.com/news/articles/2025-03-12/starmer-sees-45-billion-savings-in-uk-push-into-digital-ai?utm_source=openai)) The narrative's tone and language are consistent with official government communications, and the inclusion of specific figures and references to official reports adds to its credibility.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents information consistent with recent UK government initiatives to integrate AI for efficiency gains, notably the £45 billion savings goal. While the quotes appear original, similar sentiments have been expressed by other officials in previous reports, suggesting potential paraphrasing. The reliance on a single outlet for the narrative raises some uncertainty regarding the comprehensiveness and verification of the information. Given these factors, the overall assessment is 'OPEN' with medium confidence.

UK government
Artificial intelligence
Public sector efficiency