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by Sofia Villegas
10 March 2025
AI businesses to “skip admin” in overhaul of innovation spending

UK announces plans to overhaul spending on AI projects | Alamy

AI businesses to “skip admin” in overhaul of innovation spending

AI and innovation businesses will “skip the admin and get on with driving growing” under overhaul of funding processes, the UK's technology secretary has revealed.

The UK Government will take a “test and learn” approach and adopt a “start-up mindset” with spending on AI and digital projects in a bid to “saves taxpayers money” and “boost public services”, it is claimed.

Peter Kyle has said the changes would make innovation the “default” and allow AI innovators in government to create prototypes “almost immediately”.

It is hoped the move will help accelerate the integration of digital tools across the NHS and police.

Kyle, who is expected to announce further details on the plan later today, said: “Technology has immense potential to build public services that work for citizens. But a decades-old process has encouraged short-sighted thinking and outdated tech, while stopping crucial innovation before it even gets going.”

The move comes in response to research finding that the “overly complex spending approval process” were stopping projects from getting off the ground.  

Kyle added: “This review will help us build technology that will mean businesses can skip the admin and get on with driving growth, digital systems supporting the police are more reliable so they can keep our streets safe, and it will mean we can build new tools to speed up wait times for doctors’ appointments and get the NHS back on its feet are built.”

As part of the overhaul, the government will also create new outcome metrics and evaluation plans for major digital projects.

Chief Secretary to the Treasury Darren Jones said: “This government is determined that digital transformation of the state and our public services will deliver better outcomes for people, and ensure every pound of taxpayer’s money is spent well.

“Today’s review follows research revealing that one-in-four of the digital systems used by central government are outdated. For the worst affected organisations, this figure is almost triple that (70 per cent). This outdated technology can rack up huge maintenance costs, ultimately resulting in the taxpayer paying out three-to-four times more than if the technology was kept up to date. A growing number of these outdated systems are 'red-rated' for reliability and security risk.”

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