"If you're talking about productivity improvements - improvements of service of the value of £45 billion - that could be delivered with existing spending. I think that is more achievable. There is certainly kind of inefficiency, duplicative spending across the public sector that you could spend more effectively so but without knowing more about where that £45 billion comes from, it's harder to say."
"Unless you have serious plans to make pretty meaningful headcount reductions or reduce capital expenditure, it's going to be very difficult to achieve that £45 billion."
"huge amount, given that most of what government is spending on is either salaries or is on different kinds of infrastructure."
The UK projects £45 billion in productivity savings from AI across publicly funded services including the NHS, local councils, and central government. A DSIT study estimates AI could save the equivalent of nearly two working weeks per person per year and cites research showing half of office work can be aided by AI. The scale of the projected savings is large relative to common public spending categories such as salaries and infrastructure. Realising actual spending reductions of £45 billion would likely require meaningful headcount cuts or reduced capital expenditure, while comparable service-value gains might be achieved by cutting inefficiencies and duplication.
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