Government AI pushed stalled by old tech
The UK public sector is facing a digital crisis, with pressure mounting to roll out AI-driven services, enhance citizen engagement, and modernise remote working.
But the sector is being dragged back by legacy systems, disconnected platforms, and chronic budget constraints.
A new report from CX platform provider 8×8 and Cavell Group analysts has revealed that while ministers and civil servants trumpet the potential of technology to transform public services, much of the infrastructure needed to support this shift is lacking.
The research found that over 80 per cent of public bodies plan to switch contact centre providers within the next two years—an indication of just how urgent the need for better digital tools has become.
Only a minority of public sector organisations have the secure, unified platforms fit to scale AI responsibly, and nearly a third have admitted they’re still using multiple, disconnected communication systems.
These inefficiencies are now surfacing as risks, not just service quality, but to data protection and regulatory compliance.
“Public organisations are telling us they’re at a turning point” said Joe McStravick, vice president from EMEA Sales at 8×8.
“Expectations from citizens and government are rising fast, but the tech and training needed to meet them just isn’t keeping pace – and budgets are a major barrier”.
While email, phone as face-to-face interactions still dominate citizen engagement, the demand for live chat, mobile, and AI-driven tools is growing.
Tech secretary Peter Kyle said: “Sluggish technology has hampered our public services for too long, costing us a fortune in time and money.”
AI divide within the sector
The report paints a stark picture of uneven digital maturity across public bodies.
While nearly half expect new government policy to push AI usage by 2028, and most anticipate significant integration efforts by 2030, their existing systems are ill-equipped for this level of transformation.
Even more concerning, the average time it takes for a public sector organisation to change its contact centre provider is more than a year.
The report warned that without action, the UK public sector risks falling behind its own digital targets, and even behind other countries’ more agile, AI-ready public infrastructure.
With 59 per cent of respondents citing AI as the most transformative factor for public services by 2030, the sector must move quickly to close the readiness gap.
Jamie Snaddon, EMEA managing director at 8×8, said the findings underscore the importance of unified platforms: “Public sector teams want to deliver better outcomes, but they’re being let down by fragmented systems”, whereas AI platforms can “help field teams stay connected”.
Recognising the demand, the government has launched a new digital strategy to modernise public services, using a series of artificial intelligence (AI) tools to fix government inefficiency.
The science and technology secretary Peter Kyle announced the initiative following a review which revealed various efficiencies within the government.
Daily, HMRC was dealing with over 100,000 phone calls, while DVLA was processing over 40,000 letters, the research found.