The UK is set to overhaul how AI experiments and digital projects are funded in the public sector in an effort to simplify the process, cut down waste in taxpayer funding, and boost efficinecies.

According to the UK government, the overhaul will be centred around a ‘startup’ mindset, the change will offer a route to simplify how Government funds small AI projects and the replacement of outdated technology, after a review found that many digital projects face overly complex spending approval processes that can slow them down or prevent them from getting off the ground entirely.

The new review follows research revealing that one-in-four of the systems used by central government are outdated. For the worst affected organisations, this figure is almost triple that (70%).

This outdated technology can rack up huge maintenance costs, ultimately resulting in the taxpayer paying out three-to-four times more than if the technology was kept up to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 outdate systems are ‘red-rated’ for reliability and security risk.

Four new approaches to putting money behind innovation will be tested in April. This includes building on the rollout  of GOV.UK Chat, the government’s experimental generative AI chatbot, to provide staged funding for innovation.

Products will be supported through stages, with larger and larger tests if early trials show the potential to save money and improve public services.

There will also be a focus on developing new outcome metrics and evaluation plans for major digital projects, to ensure that these deliver value for money for the taxpayer.

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The review aims to stop chunks of the public sector’s technology bill not delivering on intended outcomes for the public. It follows the publication of a ‘blueprint for a modern digital government‘, which set out how technology will be used to improve public services, drive growth and deliver the Plan for Change.

“Technology has immense potential to build public services that work for citizens,” technology secretary Pete Kyle said.

“But a decades old process has encouraged short-sighted thinking and outdated tech, while stopping crucial innovation before it even gets going.

“These changes we’re making ensure innovation is the default. We will help give AI innovators in Government the freedom they need to chase an exciting idea and build prototypes almost immediately.

“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.”