Public Sector: Artificial Intelligence

(asked on 14th July 2025) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, how her Department plans to quantify the (a) costs and (b) savings associated with the adoption of artificial intelligence in (i) health, (ii) defence, (iii) education and (iv) other public services; and whether she considered including such an assessment in the recent Fiscal Risks and Sustainability report.


Answered by
Darren Jones Portrait
Darren Jones
Chief Secretary to the Treasury
This question was answered on 22nd July 2025

The government has committed to invest in upgrading essential digital infrastructure, modernise public services and drive a major overhaul in government productivity and efficiency by harnessing the power of Artificial Intelligence (AI). The Spending Review 2025 sets out plans for a step change in investment in digital and AI across public services, including an uplift of £1.2 billion for the Department for Science, Innovation and Technology (DSIT) to drive forward cross-cutting digital and AI priorities.

HM Treasury has not made a central assessment of AI adoption costs and savings in each public service area. The Office for Budget Responsibility (OBR) provides independent analysis of the UK's public finances and publishes the Fiscal Risk and Sustainability Report and, as such, determine the scope and details within the report. The OBR has full discretion over the judgements underpinning their forecasts.

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