Government turns to ‘startup’ funding model for public sector AI  – UKTN

The UK’s tech department is switching to a “startup mindset” for funding AI projects for the public sector to cut down on “overly complex spending approval processes”. 

Throughout the government there has been strong ambitions to deploy artificial intelligence tools throughout its digital processes – part of its growth ambitions to boost efficiency and cut waste. 

To that end, the Department for Science, Innovation and Technology (DSIT) is changing the funding model for researchers and companies working on AI pilots for the state. 

Under the new system, DSIT will be deploying “staged funding” – not unlike the various investment rounds that startups go through. 

These stages will include progressively larger tests (depending on the success of early trials) and the department aims to provide appropriate funding at each step. 

DSIT said the changes were to combat issues revealed in a review that found “many digital projects face overly complex spending approval processes that can slow them down or prevent them from getting off the ground entirely”. 

The model was in part inspired by its successful trial of Gov.uk Chat, a generative AI chatbot that can be used to access government services. 

“Technology has immense potential to build public services that work for citizens. But a decades old process has encouraged short-sighted thinking and outdated tech, while stopping crucial innovation before it even gets going.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,” said Tech Secretary Peter Kyle. 

“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.” 

Research commissioned by the government found that a quarter of the digital systems it uses are outdated, with the figure rising to 70% for the worst-affected public organisations. 

With its new funding model, it hopes not only to launch new AI tools, but also to update worn out systems. 

“This government is determined that digital transformation of the state and our public services will deliver better outcomes for people and ensure every pound of taxpayers money is spent well,” said Chief Secretary to the Treasury, Darren Jones. 

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