Public Sector
21 March 2025 • 4 min read
With 47% of services offered by central government still relying on non-digital methods, and local governments facing even bigger challenges, AI offers a unique opportunity, not just to improve services, but to rethink them entirely.
During Digital Leaders’ AI Week, we hosted a webinar where Sam Parker, Client Partnerships Principal, Rick Boyce, Chief for Technology, and Tristan Wilkinson, Chief for Public Sector, explored how AI can address the digital skills gap in the public sector. Here are 8 key insights:
1. Understanding the skills gap
The digital skills gap spans technical, organisational and leadership skills. It’s not just about having programmers or data analysts; it’s about building digital fluency at every level of the organisation, and the public sector is conspicuous in that some levels are particularly under-skilled. Leaders need to be able to understand the opportunities and limitations of technology and AI to ask the right questions and steer change effectively.
2. Public sector's unique barriers
Unlike the private sector, where ROI can be tracked in days, public sector value can take much longer to realise, because of limitations with measurement tools and processes. Cultural barriers, slow structures and legacy perceptions of technology are hurdles, but AI offers the chance to level the playing field between the two sectors, by accelerating outcomes, even with fewer resources.
3. Break down organisational silos
The State of Government Digital Review identified 4 areas of concern: fragmented technology, underused data, outdated funding models, and low service reliability.
These stem from viewing technology and IT as a side function disconnected from the main business. Learning from the private sector, where digital roles and leadership have been introduced across the organisation, is key to being able to use AI effectively.
4. Rethink service delivery with AI
AI in a service-led, citizen-centric organisation like local government can be used not just to improve existing services, but rethink them entirely.
One local council fitted refuse trucks, already covering every mile of road, with high-definition cameras, using AI to detect potholes. By combining resources from two separate government services, they could triage and prioritise repairs more efficiently. It’s a clear example of how AI can help rethink service delivery and make smarter use of diminishing resources.
AI can also ease administrative burdens. For example, in planning departments, AI can assist with processing backlogs, and highlight cases for human review that require more attention.
At a more advanced level, AI enables predictive insights. In EdTech, early analytics used historic attendance data to help predict when a student’s attendance would become serious enough to affect their record, allowing teachers to proactively intervene.
5. Scale talent without scaling headcount
With a 35% pay gap between public and private sector architects, attracting top talent can be a challenge. But AI can reduce the need to scale headcount by streamlining repeatable processes.
For one of our clients, a significant regulator in the UK, they faced soaring demand, but scaling their service model would have required a 30% increase in headcount. By using AI for automation and data analysis, they maintained quality while allowing their team to focus on higher-value work.
6. Build confidence in non-technical employees
With 52% of UK adults lacking essential digital skills, AI tools like chatbots can serve as an educational resource. They give non-technical employees the ability to explore, challenge and understand in more depth than was previously possible.
Upskilling and reskilling are essential investments as AI transforms job roles and required skills. By providing training and opportunities to develop new skills, companies can help employees work effectively alongside AI, fostering confidence and adaptability rather than fear.
7. Put digital at the heart of local government
We are embarking on the biggest disruption in local government in a generation, which will require a complete rethink of systems.
Councils should promote digital leadership, attract skilled talent, and integrate AI and digital into every strategy, not as an add-on, but as the foundation for improved service delivery.
8. Blur the lines between technical and non-technical roles
Private organisations are increasingly embracing cross-functional teams, where technical and non-technical roles collaborate based on the needs of the business.
In the public sector, the same mindset is needed. AI accelerates the need for collaboration, where non-technical staff understand the problem space, and technical staff know the detailed solution. Role divisions can limit innovation; embracing fluid teams will unlock real transformation.
AI doesn’t replace the need for digital skills, but it amplifies capabilities, unlocks efficiency, and allows public sector organisations to meet growing demands with fewer resources.
You can watch the full webinar here.
AND Digital is a trusted delivery partner for the public sector, helping organisations build better services and stronger digital capabilities. Get in touch to explore how we can support your AI strategy and close the digital skills gap.
