According to Rodolphe Malaguti, Product Strategy and Transformation at Conga, poor data structures and legacy systems are hindering the potential of AI in transforming public services.
Taxpayer-funded services in the UK, from the NHS to local councils, are losing out on potential productivity savings of £45 billion per year due to an overwhelming reliance on outdated technology—a figure equivalent to the total cost of running every primary school in the country for a year.
A report published this week highlights how nearly half of public services are still not accessible online. This forces British citizens to engage in time-consuming and frustrating processes such as applying for support in person, enduring long wait times on hold, or travelling across towns to council offices. Public sector workers are similarly hindered by inefficiencies, such as sifting through mountains of physical letters, which slows down response times and leaves citizens to bear the brunt of government red tape.
“As this report has shown, there is clearly a gap between what the government and public bodies intend to achieve with their digital projects and what they actually deliver,” explained Malaguti. “The public sector still relies heavily upon legacy systems and has clearly struggled to tackle existing poor data structures and inefficiencies across key departments. No doubt this has had a clear impact on decision-making and hindered vital services for vulnerable citizens.”
The struggles persist even in deeply personal and critical scenarios. For example, the current process for registering a death still demands a physical presence, requiring grieving individuals to manage cumbersome bureaucracy while mourning the loss of a loved one. Other outdated processes unnecessarily burden small businesses—one striking example being the need to publish notices in local newspapers simply to purchase a lorry licence, creating further delays and hindering economic growth.
A lack of coordination between departments amplifies these challenges. In some cases, government bodies are using over 500 paper-based processes, leaving systems fragmented and inefficient. Vulnerable individuals suffer disproportionately under this disjointed framework. For instance, patients with long-term health conditions can be forced into interactions with up to 40 different services, repeating the same information as departments repeatedly fail to share data.
“The challenge is that government leaders have previously focused on technology and online interactions, adding layers to services whilst still relying on old data and legacy systems—this has ultimately led to inefficiencies across departments,” added Malaguti.
“Put simply, they have failed to address existing issues or streamline their day-to-day operations. It is critical that data is more readily available and easily shared between departments, particularly if leaders are hoping to employ new technology like AI to analyse this data and drive better outcomes or make strategic decisions for the public sector as a whole.”
Ageing Infrastructure: High costs and security risks
The report underscores that ageing infrastructure comes at a steep financial and operational cost. More than one-in-four digital systems used across the UK’s central government are outdated, with this figure ballooning to 70 percent in some departments. Maintenance costs for legacy systems are significantly higher, up to three-to-four times more, compared to keeping technology up-to-date.
Furthermore, a growing number of these outdated systems are now classified as “red-rated” for reliability and cybersecurity risk. Alarmingly, NHS England experienced 123 critical service outages last year alone. These outages often meant missed appointments and forced healthcare workers to resort to paper-based systems, making it harder for patients to access care when they needed it most.
Malaguti stresses that addressing such challenges goes beyond merely upgrading technology.
“The focus should be on improving data structure, quality, and timeliness. All systems, data, and workflows must be properly structured and fully optimised prior to implementation for these technologies to be effective. Public sector leaders should look to establish clear measurable objectives, as they continue to improve service delivery and core mission impacts.”
Transforming public services
In response to these challenges, Technology Secretary Peter Kyle is announcing an ambitious overhaul of public sector technology to usher in a more modern, efficient, and accessible system. Emphasising the use of AI, digital tools, and “common sense,” the goal is to reform how public services are designed and delivered—streamlining operations across local government, the NHS, and other critical departments.
A package of tools known as ‘Humphrey’ – named after the fictional Whitehall official in popular BBC drama ‘Yes, Minister’ – is set to be made available to all civil servants soon, with some available today.
Humphrey includes:
- Consult: Analyses the thousands of responses received during government consultations within hours, presenting policymakers and experts with interactive dashboards to directly explore public feedback.Parlex: A tool that enables policymakers to search and analyze decades of parliamentary debate, helping them refine their thinking and manage bills more effectively through both the Commons and the Lords.Minute: A secure AI transcription service that creates customisable meeting summaries in the formats needed by public servants. It is currently being used by multiple central departments in meetings with ministers and is undergoing trials with local councils.Redbox: A generative AI tool tailored to assist civil servants with everyday tasks, such as summarising policies and preparing briefings.Lex: A tool designed to support officials in researching the law by providing analysis and summaries of relevant legislation for specific, complex issues.
The new tools and changes will help to tackle the inefficiencies highlighted in the report while delivering long-term cost savings. By reducing the burden of administrative tasks, the reforms aim to enable public servants, such as doctors and nurses, to spend more time helping the people they serve. For businesses, this could mean faster approvals for essential licences and permits, boosting economic growth and innovation.
“The government’s upcoming reforms and policy updates, where it is expected to deliver on its ‘AI Opportunities Action Plan,’ [will no doubt aim] to speed up processes,” said Malaguti. “Public sector leaders need to be more strategic with their investments and approach these projects with a level head, rolling out a programme in a phased manner, considering each phase of their operations.”
This sweeping transformation will also benefit from an expanded role for the Government Digital Service (GDS). Planned measures include using the GDS to identify cybersecurity vulnerabilities in public sector systems that could be exploited by hackers, enabling services to be made more robust and secure. Such reforms are critical to protect citizens, particularly as the reliance on digital solutions increases.
The broader aim of these reforms is to modernise the UK’s public services to reflect the convenience and efficiencies demanded in a digital-first world. By using technologies like AI, the government hopes to make interactions with public services faster and more intuitive while saving billions for taxpayers in the long run.
As technology reshapes the future of how services are delivered, leaders must ensure they are comprehensively addressing the root causes of inefficiency—primarily old data infrastructure and fragmented workflows. Only then can technological solutions, whether AI or otherwise, achieve their full potential in helping services deliver for the public.
(Photo by Claudio Schwarz)
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