By Emma O’Brien, Founder and CEO of people-first business transformation consultancy, Embridge Consulting
It would be reasonable to assume that public services continue to run smoother after Covid-19, given that lockdown prompted the urgent adoption of remote organisation technology. Recent data from the Office for National Statistics seems to suggest otherwise, however, revealing public-sector productivity levels 6.8% lower than 2019. With 2024 Q2 figures likewise 2.6% lower than the same period in 2023, it’s clear we’re dealing with an efficiency crisis.
A worrying disparity
The National Health Service was hit hardest by the pandemic, which has left doctors and nurses scrambling to deal with escalating waiting lists and increased public health requirements. Despite the government’s best efforts to tackle this – including a 30% increase in allocated resources according to Reuters – output has only risen by 6%, leaving us with an overall 8% decline in productivity and a concerning disparity in pressing need of address. Indeed, the year before last, the British Social Attitudes survey reported the lowest NHS patient satisfaction levels since records began in 1983 – with figures falling as low as 24%. This represents a 29% decrease since 2020, marking an unprecedented plumet in public satisfaction. A 2024 Ipsos survey further confirms this worrying fall, revealing that just 28% of the British public believe the NHS is providing good service. It’s clear, then, that the country needs more effective ways of boosting efficiency – with resurrection strategies centred around solutions that don’t cost the earth.
A catalyst for change
In the pursuit of enhancing public sector productivity – and by proxy, public satisfaction levels – the government has introduced ‘Humphrey’: a suite of artificial intelligence tools designed to improve efficiency within the civil service. Consisting of several different AI applications, this collection of tools aims to reduce bureaucratic delays, decrease reliance on external consultants and enhance data sharing – all elements that align with Labour’s broader aim of modernising public services.
Whilst Humphrey offers promising advancements, several limitations must nonetheless be addressed. An overreliance on AI to resolve all public service challenges could lead to public fear and rejection, for instance, with traditionally human-driven sectors requiring more nuanced technological approaches. Then, there’s the issue of energy consumption, with many AI systems like Humphrey threatening government net-zero targets because they can be energy intense. Finally, implementing AI in sectors like healthcare involves handling sensitive data, so privacy measures and ethics alike must remain a key priority.
Digital transformation
Rather than relying solely on AI to turn things around, then, the government must also turn to organisations specialising in digital transformation to ensure success. Though it may seem counterintuitive, with digital solutions at the fore, it’s important to take a ‘people-first’ approach, where new technologies are implemented in ways that empower public teams rather than overwhelming.
A key failing of many government-led technology turnarounds so far has been the assumption that implementing things like AI will automatically resolve deep-rooted structural inefficiencies. In reality, however, productivity gains depend on a combination of cultural change, training and digital systems that integrate seamlessly into existing workflows.
By implementing tailored Enterprise Resource Planning (ERP) solutions, public sector organisations like the NHS can unify their operations in a secure, reliable way, improving everything from financial management and HR functions to service delivery – without the cost and disruption of completely overhauling existing systems. This approach proves particularly vital in healthcare, where outdated IT infrastructure often creates admin bottlenecks responsible for hundreds of people still waiting for appointments. The same goes for patient record management and workforce planning – both of which are easily held back by legacy tech.
Of course, when used strategically, intelligent automation solutions can also reduce the administrative burden on frontline workers. Rather than replacing staff with AI, employees’ time must be freed up to focus on high-value tasks, as repetitive, time-consuming processes are left to be streamlined by the machines. This balance guarantees that technology enhances service quality, rather than hinder.
An issue of trust
Another of the key concerns surrounding AI-driven public sector reform is trust. Large-scale AI rollouts risk alienating both staff and the public if they are perceived as opaque, impersonal or imposed without inclusive consultation. The problem becomes particularly entrenched when technology is introduced without adequately warning and preparing employees for the impact to be expected on daily roles.
A successful digital transformation strategy must therefore prioritise transparency, ensuring that employees are active participants in shaping future implementation rather than feeling like passive recipients – or worse still, feeling replaced. By involving staff members early on in the process – through consultation, feedback loops and pilots – organisations can build the confidence required in their digital reforms to make them efficient.
Ultimately, even the most advanced technology is of little value if employees feel ill-equipped to use it. Change management strategies are equally as fundamental as the technologies themselves, preparing public sector teams with the skills they need to integrate digital solutions in a non-disruptive, cost-light way. A structured training programme can go a long way towards ensuring knowledge and technical expertise remain in house.
Smarter investment
The Labour government has taken a critical step towards revitalising the public sector with technology. But the focus must shift from AI hype to human-centred pragmatism if we are to see success. Investing in tailored solutions – like ERP systems, intelligent automation and strategic consultancy – will deliver more meaningful, measurable improvements, ensuring the tables are turned and we start to see a tangible return in investment: a rise in satisfaction on par with government spending on AI.
