18th Report - Use of AI in Government

Select Committee
Public Accounts Committee HC 356 26 March 2025
Report Status Government responded
Conclusions & Recommendations 27 items (8 recs)
Source View on Parliament website
Government Response (AI assessment · 27 of 27 classified)
Accepted 19
Acknowledged 8
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Eighteenth report from Session 2024-25 · published 10 Jul 2025
Read the government response ↗ Response on the tracker

Recommendations & Conclusions

27 results
2 Conclusion Accepted
Update committee on Algorithmic Transparency Standard compliance and high-risk AI spend controls.
Conclusion
Public trust is being jeopardised by slow progress on embedding transparency and establishing robust standards for AI adoption in the public sector. Public confidence that the AI technology used by government is fair, accurate, secure and safe is key to … Read more
Government Response Summary
The government has updated internal guidance for AI spend assurance, with spend controls now checking Algorithmic Transparency Recording Standard (ATRS) compliance, and DSIT will provide an update in Autumn 2025 on further changes to spend assurance and service assessments.
HM Treasury
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3 Conclusion Accepted
Explain how Digital and AI Roadmap reforms will resolve public sector skills gaps.
Conclusion
There are persistent digital skills shortages in the public sector and DSIT’s plans to address the skills gap may not be enough. 70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI … Read more
Government Response Summary
The government is implementing reforms including requiring digital leaders on executive committees and boards by 2026, refining pay and capability frameworks, and developing talent pipelines, with monitoring through bi-annual reporting and public updates in the forthcoming Digital and AI Roadmap.
HM Treasury
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4 Conclusion Acknowledged
Establish mechanism for AI pilot learning and scale successful products across government.
Conclusion
DSIT has no systematic mechanism for bringing together learning from pilots and there are few examples of successful at–scale adoption across government. At the time of the NAO report (March 2024), levels of AI use in government were low, but … Read more
Government Response Summary
The government agrees but states a proposal is currently being developed within the Public Sector AI Adoption programme, which will define scope, secure funding, and build a minimal viable product for a mechanism to scale AI initiatives.
HM Treasury
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5 Recommendation Accepted
Detail how AI sourcing framework will ensure value and competition for government procurement.
Recommendation
DSIT and Cabinet Office have a long way to go to strengthen government’s approach to digital procurement to ensure value for money and a thriving AI supplier market. The technology market is rapidly evolving with a shift from upfront capital … Read more
Government Response Summary
The government agrees and commits to defining a digital procurement strategy focused on AI sourcing, publicly articulating an AI procurement framework, and providing training and support resources like an AI Playbook for government professionals.
HM Treasury
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6 Conclusion Acknowledged
Ensure Government Digital and AI Roadmap has clear implementation plan with milestones and metrics.
Conclusion
Realising the benefits of AI across the public sector will require strong leadership from DSIT. Addressing the skills shortage, tackling the persistent issues with poor data quality and out–of–date technology, and providing the support and guardrails the public sector needs … Read more
Government Response Summary
The government agrees, stating DSIT is exploring mechanisms to enhance digital expertise and integrate senior digital professionals, aligning with existing intent to require digital leaders on boards and a dotted reporting line to the Government Chief Digital Officer, but does not detail a specific implementation plan for the proposed roadmap itself.
HM Treasury
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1 Conclusion Accepted
Committee hears evidence on the government's use of artificial intelligence.
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Science, Innovation and Technology (DSIT) and the Cabinet Office on the use of artificial intelligence (AI) in government.1
Government Response Summary
The government agrees with the implied recommendations, committing to GDS working with HMT to develop a methodology for tracking legacy system remediation funding and to improve cross-government data management practices, including for the National Data Library.
HM Treasury
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7 Conclusion Accepted
Legacy IT systems pose significant risks to government AI adoption and cybersecurity.
Conclusion
DSIT told us that it was a matter of urgency that the issue of legacy systems in government is addressed, not only to take advantage of the opportunities offered by AI, but also to address other risks including cyber security … Read more
Government Response Summary
DSIT, working with HMT, has conducted an assessment of proposals to address legacy IT and will use this to inform HMT's prioritisation of funding. GDS will also work with departments to ensure the highest risk systems receive the funding they need.
HM Treasury
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8 Conclusion Accepted
Government introduces new review and tracking for legacy technology remediation funding.
Conclusion
A blueprint for modern digital government sets out government’s intention to identify remediation funding for legacy technology. DSIT told us the new Government Digital Service will work with HM Treasury to review all spending review bids for legacy remediation to … Read more
Government Response Summary
DSIT, working with HMT, has conducted an assessment of proposals to address legacy IT and will use this to inform HMT's prioritisation of funding. GDS will also work with departments to ensure the highest risk systems receive the funding they need.
HM Treasury
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9 Conclusion Acknowledged
Inadequate access to good-quality data impedes government's AI implementation efforts.
Conclusion
Access to good–quality data was identified as a barrier to implementing AI by 62% of the 87 government bodies responding to the NAO’s survey.16 We received written evidence expressing a range of views on this topic, illustrating the complexity of … Read more
Government Response Summary
DSIT will set out details of its programme of work to address barriers to data sharing in the upcoming Government Digital and Artificial Intelligence (AI) Roadmap, including work to improve cross-government data management practices with a focus on data quality, as well as how this work will support successful realization of the National Data Library.
HM Treasury
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10 Recommendation Accepted
DSIT highlights need for cultural change and new initiatives to overcome data sharing barriers.
Recommendation
We challenged DSIT on what it was doing to address barriers to data sharing in government and it told us a change in culture is needed and government bodies need to think about the collective interest of the public when … Read more
Government Response Summary
DSIT will set out details of its programme of work to address barriers to data sharing in the upcoming Government Digital and Artificial Intelligence (AI) Roadmap, including work to improve cross-government data management practices with a focus on data quality, as well as how this work will support successful realization of the National Data Library.
HM Treasury
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11 Conclusion Acknowledged
Public trust is vital for AI adoption but remains low, requiring greater transparency.
Conclusion
67% of government bodies responding to the NAO’s survey said that support from the centre of government in fostering public trust in AI was very important.23 Written evidence we received from a wide range of stakeholders emphasised the vital importance … Read more
Government Response Summary
The government acknowledges the importance of public trust and data privacy in AI adoption.
HM Treasury
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12 Recommendation Accepted
The Algorithmic Transparency Recording Standard remains underused, hindering public sector AI transparency.
Recommendation
The Algorithmic Transparency Recording Standard (ATRS), is intended to support public sector bodies to improve transparency and provide information about the algorithmic tools they are using, but the NAO found it was not widely used.27 We challenged DSIT on this … Read more
Government Response Summary
DSIT will update the Committee in six months (January 2026) on departmental compliance with the Algorithmic Transparency Recording Standard (ATRS) and further action it is taking to tackle gaps in transparency to strengthen public trust, including to address public concerns over data privacy and the sharing of sensitive data.
HM Treasury
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13 Recommendation Accepted
DSIT acknowledges more work needed for AI transparency and redress mechanisms.
Recommendation
We asked DSIT for reassurances that there would be sufficient transparency and mechanisms for citizens to challenge AI assisted decisions. It told us that there were provisions in the Data (Use and Access) Bill to allow for redress and challenge … Read more
Government Response Summary
DSIT will update the Committee in six months (January 2026) on departmental compliance with the Algorithmic Transparency Recording Standard (ATRS) and further action it is taking to tackle gaps in transparency to strengthen public trust, including to address public concerns over data privacy and the sharing of sensitive data.
HM Treasury
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14 Conclusion Acknowledged
Significant recruitment and retention challenges hinder government's adoption of AI and digital skills.
Conclusion
70% of government bodies responding to the NAO’s survey identified difficulties in recruiting and retaining staff with AI skills as a barrier to AI adoption.31 In January 2025, the government’s State of digital government review set out the digital and … Read more
Government Response Summary
The government acknowledges the digital skills gaps and is taking steps to implement reforms, including refining frameworks, developing talent pipelines, and encouraging skills exchange. More detail is promised in the forthcoming Digital and AI Roadmap.
HM Treasury
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15 Recommendation Acknowledged
Addressing the AI skills gap is crucial for responsible and ethical public sector AI adoption.
Recommendation
Written evidence we received emphasised the importance of addressing this skills gap, raising concerns about the public sector’s ability to take advantage of the opportunities of AI responsibly and ethically without 28 Qq 10–11 29 Q 57 30 Q 20 … Read more
Government Response Summary
The government agrees with the recommendation to address the digital skills gap in the public sector but provides only general plans such as refining frameworks, developing talent pipelines, and encouraging skills exchange. More detail is promised in the forthcoming Digital and AI Roadmap.
HM Treasury
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16 Conclusion Accepted
Government's long-standing digital and data skills gap requires renewed efforts and diverse initiatives.
Conclusion
The digital and data skills gap in government is long–standing and this committee has raised concerns about this issue in the past.35 We challenged the Cabinet Office and DSIT on how they were tackling the problem and they told us … Read more
Government Response Summary
DSIT is implementing reforms, including refining the Government Digital and Data Pay Framework and Capability Framework, to address digital skills gaps. Talent pipelines are being developed and cross-sector skills exchange is encouraged through initiatives like TechTrack and the Digital Secondments Programme, with progress to be set out in the forthcoming Government Digital and AI Roadmap.
HM Treasury
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17 Conclusion Accepted
DSIT's blueprint prioritises reforms for digital leadership and employment models to address skills gaps.
Conclusion
DSIT’s A blueprint for modern digital government also sets out a series of priority reforms. These include commitments to assess the optimum employment models and the competitiveness of the overall package for digital and data staff. To strengthen digital leadership, … Read more
Government Response Summary
DSIT is implementing reforms, including refining the Government Digital and Data Pay Framework and Capability Framework, to address digital skills gaps. Talent pipelines are being developed and cross-sector skills exchange is encouraged through initiatives like TechTrack and the Digital Secondments Programme, with progress to be set out in the forthcoming Government Digital and AI Roadmap.
HM Treasury
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18 Conclusion Acknowledged
AI deployment not widespread across government, with most bodies still piloting or planning use.
Conclusion
At the time of the NAO report in March 2024 AI was not widely used across government, with just over a third (37%) of 87 government bodies surveyed reporting they had deployed AI. In contrast, over two–thirds (70%) were piloting … Read more
Government Response Summary
The government acknowledges the committee's observation about the new Government Digital Service and its aim to unite efforts to grasp the opportunities of technology and AI.
HM Treasury
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19 Conclusion Accepted
Systematic knowledge sharing on government AI adoption remains absent.
Conclusion
The NAO report set out the importance of knowledge sharing to learn from pilot activity, encourage innovation, promote consistent standards, and avoiding duplication of effort in AI adoption across government. However, it also reported that there was no systematic dissemination … Read more
Government Response Summary
DSIT is establishing workstreams to gather and share insights from AI pilots, including the Prime Minister's AI Exemplars, to identify conditions for successful scaling. This includes assessing maturity, identifying core components for scaling, resolving bureaucratic blockers, and creating guidance with HMT for consistent and rigorous impact evaluation.
HM Treasury
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20 Conclusion Accepted
Government still faces challenges in robustly evaluating and sharing AI pilot learning.
Conclusion
We questioned DSIT on how it is evaluating and sharing learning from AI pilot activity across government to avoid reinventing the wheel and to support AI adoption at scale. It told us that it was taking a range of approaches … Read more
Government Response Summary
DSIT is establishing workstreams to gather and share insights from AI pilots, including the Prime Minister's AI Exemplars, to identify conditions for successful scaling. This includes assessing maturity, identifying core components for scaling, resolving bureaucratic blockers, and creating guidance with HMT for consistent and rigorous impact evaluation.
HM Treasury
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21 Conclusion Accepted
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 … Read more
Government Response Summary
DSIT will publicly articulate an AI procurement framework, aligned with the overarching digital technology sourcing strategy, with a focus on Digital Partnerships and collaboration with Crown Commercial Service. DSIT will also help technology and procurement professionals work in a unified manner through training and support resources.
HM Treasury
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22 Conclusion Accepted
Departments are strengthening digital procurement to balance centralisation and SME opportunities.
Conclusion
We questioned DSIT and the Cabinet Office on how they were strengthening digital procurement in government to support competition and innovation. They told us these issues were an ongoing challenge and that they wanted to find a balance between guiding … Read more
Government Response Summary
DSIT will publicly articulate an AI procurement framework, aligned with the overarching digital technology sourcing strategy, with a focus on Digital Partnerships and collaboration with Crown Commercial Service. DSIT will also help technology and procurement professionals work in a unified manner through training and support resources.
HM Treasury
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23 Conclusion Accepted
Government is improving efforts to leverage public sector buying power for digital services.
Conclusion
The State of digital government review reported that government is not doing enough to ensure the public sector benefits from the scale of its buying power.56 The Cabinet Office and DSIT told us they are working to tackle this, giving … Read more
Government Response Summary
DSIT will publicly articulate an AI procurement framework, aligned with the overarching digital technology sourcing strategy, with a focus on Digital Partnerships and collaboration with Crown Commercial Service. DSIT will also help technology and procurement professionals work in a unified manner through training and support resources.
HM Treasury
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24 Conclusion Acknowledged
AI governance fragmented across government, but recent departmental transfers consolidate responsibility.
Conclusion
At the time of the NAO report, responsibility for AI in government was split across the Cabinet Office—which was primarily responsible for AI adoption in the public sector, through CDDO, i.AI and the Government Digital Service (GDS)—and DSIT, which held … Read more
Government Response Summary
The government acknowledges the committee's observation about the new Government Digital Service and its aim to unite efforts to grasp the opportunities of technology and AI.
HM Treasury
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25 Recommendation Accepted
Departmental moves aim to resolve AI accountability issues, but full impact unproven.
Recommendation
We questioned the departments on what benefits we would see from these departmental moves, and the Cabinet Office told us that the aim was, in part, to address the issues of accountability and complexity highlighted by the NAO report which … Read more
Government Response Summary
The government is introducing a requirement for all executive committees to include digital leaders and for boards to appoint digital non-executive directors by 2026, refining the Government Digital and Data Pay Framework and Capability Framework, and developing talent pipelines through initiatives such as TechTrack, the AI Accelerator, and the Digital Secondments Programme.
HM Treasury
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26 Recommendation Accepted
New inter-ministerial group and political leadership are key for AI coordination.
Recommendation
The Departments told us that the departmental moves had been supported by a new digital inter–ministerial group (IMG) which provides greater focus and links the work with wider cross–government work on public service reform and the government’s missions.66 DSIT emphasised … Read more
Government Response Summary
The government is introducing a requirement for all executive committees to include digital leaders and for boards to appoint digital non-executive directors by 2026, refining the Government Digital and Data Pay Framework and Capability Framework, and developing talent pipelines through initiatives such as TechTrack, the AI Accelerator, and the Digital Secondments Programme.
HM Treasury
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27 Recommendation Accepted
Public sector digital leadership found inadequate, DSIT to mandate roles and publish roadmap.
Recommendation
We challenged DSIT and the Cabinet Office on the scale of the challenge and whether the public sector would be able to grasp the opportunities offered by AI. DSIT told us that it had to be self–critical about digital leadership … Read more
Government Response Summary
The government is introducing a requirement for all executive committees to include digital leaders and for boards to appoint digital non-executive directors by 2026, refining the Government Digital and Data Pay Framework and Capability Framework, and developing talent pipelines through initiatives such as TechTrack, the AI Accelerator, and the Digital Secondments Programme.
HM Treasury
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