AI and system reform could help boost Whitehall productivity watchdog to say

Embracing new technology such as artificial intelligence and reform of public sector systems are among the actions Whitehall needs to take to boost productivity, the head of the Government spending watchdog will say on Tuesday.

Gareth Davies, comptroller and auditor general of the National Audit Office (NAO) will use his annual speech in Parliament to warn also that “money is wasted” and public services “compromised” when there is a lack of preparedness for “increasingly likely events” such as pandemics or extreme weather.

Mr Davies will lay out four fundamental points that he believes can help boost productivity in the UK and increase resilience to long-term threats such as cyber attacks.

Among other things, he will argue that departments should have effective accountability in place that means risks can be taken in a managed way, and harness new technologies such as AI.

The NAO is an independent body that reports on the finances of government departments and other public bodies, and Mr Davies has the statutory authority to examine the value for money of spending of public funds.

He will describe AI as “rightly at the top of the agenda” when it comes to improving productivity, with “clear potential for reducing the time taken for routine tasks”.

“The question is not whether AI will make a difference to productivity but how to maximise the benefits whilst managing the risks,” Mr Davies will add.

He will also say that “system reform” is on his “list”, which will mean “tackling the causes of avoidable demand and allocating resources in a redesigned system where they can have maximum impact on productivity”.

Mr Davies will also advocate more investment into people and skills, and ensuring assets are maintained so that services can be delivered.

The head of the watchdog will also argue that the UK should be “better prepared” at both a national and local level to be able to adapt to new information and events at speed.

“We have much evidence that money is wasted and services to citizens compromised when we’re unprepared for increasingly likely events, whether that’s pandemics, extreme weather or cyber attacks,” he is expected to say.

“All this evidence points to the same thing: we need to be better prepared nationally and locally; to have sound risk management in place; and to be ready to adapt to new information and events quickly and effectively.”

Recent reports released by the NAO have examined Britain’s resilience to cyber threats and the cost of the backlog in maintaining crumbling schools, hospitals and prisons.

A Government spokesperson said: “AI has immense potential to transform public services, and too much of our public sector is reliant on archaic digital infrastructure.

“Our six-point plan to transform public services with technology will drive responsible AI adoption, give public services the tools they need to coordinate themselves, and repair the foundations of their infrastructure to ensure they are resilient and secure – this includes GOV.UK Wallet and AI tools that streamline administrative processes, enhance decision-making and boost productivity across departments.”

Published: 04/02/2025 by Radio NewsHub