Wednesday, Jan 22, 2025
Rodolphe Malaguti, who oversees Product Strategy and Transformation at Conga, suggests that outdated data structures and legacy systems are restricting AI's ability to revolutionize public services.
In the UK, public services funded by taxpayers, such as the NHS and local councils, are missing out on potential productivity savings of £45 billion annually due to excessive dependence on obsolete technology—a sum comparable to the total annual cost of running all primary schools in the country.
A recent report reveals that almost half of public services remain inaccessible online. This situation compels British citizens to endure time-intensive and frustrating processes, such as applying for support in person, coping with long hold times, or traveling across cities to reach council offices. Likewise, public sector workers are bogged down by inefficiencies, such as wading through a sea of physical correspondence, which delays response times and results in citizens facing bureaucratic hurdles.
Malaguti commented, “This report demonstrates a disconnect between what the government and public bodies aim to achieve with digital initiatives and the outcomes realized. The public sector remains heavily reliant on legacy systems, facing challenges in addressing poor data structures and inefficiencies within key departments. Undoubtedly, this has impacted decision-making and essential services for vulnerable citizens.”
The challenges extend even to deeply personal and crucial moments. For instance, registering a death still necessitates an in-person presence, burdening grieving individuals with bureaucratic tasks during a time of loss. Other outdated procedures impose unnecessary strain on small businesses—take, for instance, the requirement to publish notices in local newspapers to obtain a lorry license, causing delays and obstructing economic development.
Poor departmental coordination exacerbates these issues. In some situations, government bodies rely on over 500 paper-based processes, leaving systems fragmented and ineffective. Vulnerable individuals suffer more under this disjointed framework. For example, patients with chronic health conditions may end up interacting with up to 40 different services, repeatedly providing the same information due to departments' failure to share data.
“The problem is that government leaders previously focused on technology and online communications, adding layers to services while still utilizing outdated data and legacy systems—this has ultimately created inefficiencies across departments,” Malaguti added.
“Simply put, they haven't tackled the existing challenges or streamlined their everyday operations. Making data more accessible and easier to share between departments is critical, especially for leaders looking to leverage new technologies like AI to analyze data and enhance outcomes or drive strategic decisions across the public sector as a whole.”
The report emphasizes that aging infrastructure incurs significant financial and operational costs. More than one in four digital systems across the UK's central government are outdated, and this figure rises to 70 percent in certain departments. Maintaining legacy systems can be three to four times costlier compared to keeping technology updated.
Additionally, an increasing number of these outdated systems are now labeled as “red-rated” concerning reliability and cybersecurity risk. Disturbingly, NHS England reported 123 critical service outages last year alone. These outages often resulted in missed appointments, necessitating a switch to paper-based systems, which complicated patient access to care at critical times.
Malaguti emphasizes that resolving these challenges entails more than just updating technology.
“The focus should be on enhancing data structure, quality, and timeliness. To ensure these technologies are effective, all systems, data, and workflows must be properly structured and fully optimized before implementation. Public sector leaders should clearly define measurable goals as they work to enhance service delivery and core mission impact.”
In response to these challenges, Technology Secretary Peter Kyle is announcing a comprehensive overhaul of public sector technology to usher in more modern, efficient, and accessible systems. By focusing on AI, digital tools, and “common sense,” the reform aims to reshape the design and delivery of public services, optimizing operations across local government, the NHS, and other critical departments.
A suite of tools known as ‘Humphrey’—named after the fictional Whitehall official in the popular BBC drama ‘Yes, Minister’—will soon be accessible to all civil servants, with some tools already available.
Humphrey includes:
The introduction of new tools and changes will help address the inefficiencies identified in the report while achieving long-term cost savings. By reducing the burden of administrative tasks, these reforms aim to allow public servants, such as doctors and nurses, to spend more time assisting the people they serve. This could lead to quicker approvals for essential licenses and permits, stimulating economic growth and innovation.
“The upcoming government reforms and policy updates, expected to deliver on its AI Opportunities Action Plan, should expedite processes,” Malaguti stated. “Public sector leaders need to adopt a strategic approach to their investments, executing projects methodically, recognizing each operational phase.”
This extensive transformation will also benefit from an expanded role for the Government Digital Service (GDS). Planned measures include utilizing the GDS to detect cybersecurity vulnerabilities in public sector systems that hackers might exploit, strengthening the robustness and security of services. Such reforms are vital to safeguard citizens, especially as reliance on digital solutions grows.
The wider objective of these reforms is to align the UK's public services with the efficiency and convenience that a digital-first world demands. By employing technologies like AI, the government aspires to make interactions with public services swifter and more intuitive, ultimately saving taxpayers billions.
As technology reshapes the future of service delivery, leaders must ensure they thoroughly tackle the core causes of inefficiency—primarily outdated data infrastructure and fragmented workflows. Only then can technological solutions, whether AI or otherwise, fully realize their potential in helping services meet public needs.
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