As the NHS launches a new AI-powered safety warning system for patient protection, behind the scenes, the Department of Health and Social Care is quietly reducing the data infrastructure needed to make AI work by £12 million over two years.

Data is playing an increasingly vital role, particularly as artificial intelligence is being rolled out throughout the NHS and government departments, with 70 per cent of government bodies already piloting or planning to use AI, highlighting the urgent need for high-quality, structured, and secure data.

New figures, obtained via a Freedom of Information request and analysed by the Parliament Street Think Tank, have revealed the Department of Health and Social Care has reduced its annual spending on data staff, technology and management across the department from £37.7 million in 2023/24 to £25 million in 2025/26.

This comes as the NHS prepares to roll out an AI early warning system across hospitals throughout the UK this November to monitor real-time hospital data to flag unusual spikes to trigger urgent inspections.

However, with overall budgets falling, concerns are mounting that the department is underinvesting in the data quality, governance and infrastructure needed for trustworthy AI.

Stuart Harvey, CEO of Datactics, commented: “As AI tools become increasingly embedded into front-line services within the government, the need for high-quality and well-governed data has never been more urgent. You can’t build trustworthy and accurate AI without clean, complete and well-understood data underneath it.”

“AI has incredible potential, but the real work happens long before the algorithm begins. It’s about managing data standards, access and governance, and if those foundations aren’t solid, the AI will fail.”

“We must remember, AI is only as good as the data that feeds it and cutting corners on data quality or infrastructure means accepting higher risks tomorrow. Real innovation comes from getting the basics right first.”

It comes as other government departments are all increasing their data budgets with the Crown Prosecution Service investing £52 million into data spending and staff over the past three years, showcasing their investment into digital infrastructure to support its operational effectiveness and security.

Richard Bovey, Chief of Data at AND Digital commented: “As artificial intelligence becomes more embedded within public services, the need for strong data foundations has never been greater and cutting data infrastructure funding at a time of growing reliance on AI sends a mixed message.

“To realise the full potential of AI in healthcare and beyond, the government must prioritise in-house data capability, data quality, and robust governance, these are the true enablers of safe, ethical, and high-impact innovation.”

“Ultimately, AI success is built on solid data foundations. By investing wisely in the teams, tools, and standards that underpin data, we can create a public sector that’s not only digitally advanced, but also grounded in trust, transparency, and long-term resilience.”

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Arkadiy Ukolov, Co-Founder and CEO at Ulla Technology Ltd, commented: “The Department of Health and Social Care’s decision to cut £12 million from data infrastructure spending is deeply concerning, especially as AI is being deployed to monitor real-time hospital data and protect patient safety. Without strong investment in secure systems, the privacy risks multiply.

“The UK is already grappling with an AI wild west, where staff in both public and private sectors are sharing sensitive information with third-party systems without proper oversight, often breaching privacy and compliance protocols in the process.

“For AI to be truly fit for purpose, particularly in healthcare, it must be built on privacy-first foundations. That means ensuring data remains under user control, processed within secure environments, and governed by clear ethical frameworks. Cutting back on the very infrastructure that underpins those protections threatens to undermine trust and safety at a time when both are needed most.”