Google says generative AI can help public sectors save money—£38 billion annually

Researchers warn that without AI, the UK will need £12 billion more next year

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Key notes

  • A study funded by Google says generative AI could save the UK public sector £38 billion annually by 2030.
  • The study says that AI could boost productivity, improve services, and ease pressure across sectors.
  • Over 50% of public sector jobs could also be supported by AI, helping ease worker stress caused by labor shortages.
Google building

Google has been betting big on AI, and rightfully so. A recent study—funded by the tech giant—now says that generative AI can transform the UK public sector & help them save money by at least £38 billion annually by 2030.

The report, based on a survey of 415 public sector workers, reveals that AI could improve productivity, improve service quality, and ease capacity constraints in sectors like healthcare and policing.

It does so by automating up to a third of a public sector employer’s daily tasks, and in its domino effect, can free up more time & more vital resources for other tasks.

“If the UK cannot leverage generative AI to boost public sector productivity, which has not increased in over 25 years, the Treasury will have to find another £12 billion in revenue for the next fiscal year,” says researchers from Public First.

The study also finds that, while many public administration managers are still early in adopting AI, the tech could help increase primary care doctor appointments by 3.7 million & improve teacher-to-student ratios. The study also finds that over 50% of public sector jobs are likely to be “augmented” by AI, meaning to be supported instead of being fully replaced.

There’s a high level of stress on public sector workers as the UK is facing labor shortages within the sector. In the past five years alone, as the study says, 79% of respondents have felt their workload has grown, while 61% report being overworked.

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