AI Business Strategy

How AI is transforming public sector services

By Ashish Devalekar, Executive Vice President and Head of Europe at Mphasis

Artificial intelligence (AI) is moving away from experimentation to everyday reality across the UK’s public sector. The public sector is already using AI to tackle some of their most complex challenges, from detecting fraud and streamlining processes to improving services across areas such as welfare, tax, immigration, healthcare, and justice. 

AI is not only changing how public services operate; it’s also reshaping the wider technology industry. Large language models (LLMs) are transforming the way software is designed, built, and maintained. Tasks that previously required significant engineering effort can increasingly be accelerated through AI-assisted development – changing delivery models. 

For technology providers, this changes the rules of the game. Traditional approaches built around scaling engineering capacity alone are under pressure as organisations seek faster outcomes, greater value, and new approaches to innovation. 

However, disruption also creates opportunity. Every major technology shift changes how organisations operate and creates space for new services, new ideas, and new ways of working. The organisations that succeed will be those that use AI not simply to reduce costs, but to deliver better outcomes and solve more meaningful challenges. 

Trust must come before scale 

For the public sector, the opportunities created by AI are significant, but so are the responsibilities. Public sector organisations hold some of society’s most sensitive information, including citizen identities, health records, financial details, and data relating to essential services. 

As AI systems increasingly rely on this information, protecting it becomes even more important. 

AI is only as trustworthy as the data, processes, and safeguards behind it. Without strong data governance, cybersecurity controls, and clear accountability, adopting AI into key processes becomes significantly more complex. 

Many AI initiatives depend on data being shared securely across departments and agencies responsible for areas such as taxation, welfare, healthcare, education, immigration, and justice. These connections allow public sector organisations to respond more effectively to citizens’ needs, but greater connectivity also creates greater responsibility. 

A vulnerability in one part of the ecosystem can have consequences far beyond a single organisation. Cybersecurity, therefore, cannot be treated as a separate technical issue – it must be built into every stage of AI integration. 

Addressing the legacy challenge 

Across the public sector, modern digital services often sit alongside legacy platforms that were never designed for today’s level of connectivity or cyber risk. 

Data can be fragmented, systems can lack visibility, and information can remain disconnected across environments. This creates a persistent gap between the speed at which threats evolve and the ability of organisations to defend against them. As attacks become increasingly sophisticated, static defences are no longer sufficient. Security teams need real-time visibility and the ability to act quickly, supported by intelligence that identifies emerging risks and helps prioritise action. 

But adding AI on top of these foundations without addressing underlying challenges creates unnecessary risk. Organisations need a clear understanding of where data comes from, how it moves through systems, who has access to it, and how it influences automated decisions.  

When automated systems influence decisions that directly affect citizens’ livelihoods and rights, public sector security and risk leaders must prioritise cyber-resilient architectures supported by strong identity management, access governance, traceability, and model transparency. 

This is why successful AI adoption is not just about implementing new tools. AI is only as secure as the governance, policies, and infrastructure surrounding it, making cybersecurity a central pillar of any public sector transformation. 

Turning disruption into growth 

Turning strategy into practice is where many public sector organisations face the greatest challenge. Embedding AI requires more than policy frameworks – it demands operational consistency across systems, teams, and processes, with AI solutions grounded in the wider context of how organisations operate. This includes integrating security controls directly into data pipelines, ensuring continuous monitoring of how data is accessed and used, and establishing clear lines of accountability for both data and model governance. 

Organisations must also be able to track how data flows between systems, how it is transformed, and how it contributes to automated decisions. Without this level of insight, it becomes difficult to detect misuse, respond to incidents, or demonstrate compliance. Connecting this information across the organisation is essential if AI is to support better decisions rather than simply automate existing processes. 

The public sector has also put in place cross-department coordination mechanisms to facilitate secure data sharing, including governance frameworks that set common principles and standards, expert networks that resolve complex cases, and controlled data marketplaces that allow departments to request datasets safely.  

The changes happening across the technology services industry are equally significant. AI is reducing the time and effort required for many traditional delivery activities, creating pressure on models that have historically relied on scaling engineering capacity. But this does not mean the role of technology partners is disappearing. Instead, it is evolving. 

The next generation of technology services will focus on helping organisations solve more complex problems as AI enables teams to rethink how services are designed, how decisions are made, and how technology creates value. The organisations that succeed will be those that combine AI capabilities with the operational knowledge, governance, and expertise needed to turn experimentation into meaningful outcomes.  

For firms willing to adapt, AI is not simply a challenge to overcome – it is a catalyst for reinvention. 

From data foundations to stronger cyber defences 

The public sector’s AI journey will hinge on getting the balance right.  

Innovation must be partnered with responsibility, speed must be supported by security, and automation must be built on trust. 

Strong governance, collaboration across departments, secure data-sharing frameworks, and robust data foundations will all be essential for responsible AI adoption. Establishing clear ownership of data, consistent classification standards, and enforceable access policies can help reduce ambiguity and ensure accountability across systems. 

AI can also strengthen security outcomes by identifying patterns of fraud across large datasets, detecting unusual activity indicative of abuse or compromise, highlighting cyber risks, and helping organisations prioritise investigative effort where risk is greatest. These capabilities allow security teams to move from reactive responses to more proactive and predictive approaches, improving both efficiency and effectiveness. 

Protecting the future of public services 

As the public sector relies on AI to support more critical public services, protecting the infrastructure and data behind those systems becomes increasingly important. Cybersecurity is no longer just an operational concern; it is a matter of national resilience. Attacks on public sector systems can disrupt services, undermine public confidence, and have far-reaching societal consequences. 

Innovation and efficiency cannot come at the expense of robust cybersecurity and resilient digital infrastructure. 

AI is already transforming public services and will continue to redefine how the public sector delivers value to citizens. But achieving this potential depends on more than adopting new technology; it requires the data, context, and governance needed to make AI effective in practice. 

The real test will be whether organisations can turn AI ambition into lasting value – building systems that are secure and reliable, while earning the trust of the people they serve. 

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