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Government AI procurement processes remain ill-suited to dynamic technology markets.

Conclusion
In its January 2025 State of digital government review, DSIT reported that government procurement processes had not adapted to the changing nature of the technology market, which has seen a shift from upfront capital purchases to subscription–based models, and greater consolidation of the supply chain.51 Written evidence we received from technology suppliers, third–sector bodies and academics raised concerns that the dominance of a small number of large technology suppliers in the AI market risks stifling competition and innovation.52 Concerns were also raised that government procurement approaches were ill–suited to a dynamic, fast–paced market, increasing risks to value for money from vendor lock–in and the inability to adapt and take advantage of rapid technological development.53
Government Response

A response document is linked to this report, dated 10 July 2025. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.5 yrs
Report published 26 Mar 2025