Google says generative AI could save public sector £38 billion a year

Researchers warn: Without AI, the UK will need £12 billion more next year

Key points:

Generative AI could help the UK public sector save £38 billion a year by 2030, according to a Google-funded study.

AI is capable of boosting productivity, improving services and reducing pressure across sectors.

AI could reduce work pressure on workers by supporting more than 50% of public sector jobs.

Google is investing big in AI, and there are solid reasons behind it. A recent Google-funded report suggests that generative AI could completely transform the UK public sector and help deliver annual savings of at least £38 billion by 2030.

Study findings

The report, which surveyed 415 public sector workers, suggests AI could improve productivity, raise the quality of services, and reduce capacity problems in sectors such as healthcare and policing.

AI could automate up to a third of the daily tasks of public sector staff, freeing up time and resources for more important tasks.

“If the UK does not use generative AI to increase public sector productivity, which has remained stagnant over the past 25 years, the Treasury would have to raise £12 billion in extra revenue over the next financial year,” say researchers at Public First.

The study also suggests that although public administration managers are still early in adopting AI, the technology could increase primary care doctor appointments by 3.7 million and improve teacher-student ratios.

Also, the report says that more than 50% of public sector jobs could be “augmented” by AI, meaning they would be supported rather than completely replaced.

Worker shortages in the UK public sector are putting increasing pressure on employees. Over the past five years, according to the study, 79% of participants have felt their workload has increased, while 61% described themselves as overworked.

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