Powering Up the UK Economy — With AI

Inside the government’s new AI initiative to drive efficiency and unlock billions in public sector value

What if AI could help the UK government save tens of billions of pounds, by working smarter?

That’s the ambition behind a bold new fellowship scheme recently announced by the Department for Science, Innovation and Technology. It’s all part of a wider “plan for change” from Prime Minister Keir Starmer, who’s made it clear he sees AI as a core lever for improving the UK’s economic performance and modernising public services.

And the government isn’t doing it alone. This new push is being backed by Meta (the people behind Facebook) and the Alan Turing Institute, and aims to bring top AI experts into the heart of government, helping departments harness the technology for real-world impact.

So what’s actually happening — and why should business leaders be paying attention?

In short: the government is ramping up its use of AI with a new £740,000 programme to recruit 10 AI experts. These new appointments will be embedded across departments to help solve operational challenges and boost public sector performance, from planning and infrastructure to national security and emergency response.

It’s a practical move with big ambitions. The government hopes these tools could contribute to tens of billions in savings and efficiencies.

It’s also a welcome sign of strategic thinking. Rather than expecting existing teams to simply “pick up AI” alongside their day jobs, the government is investing in dedicated expertise to lead the charge. And that’s a lesson every organisation can learn from.

We often tell our clients: successful AI adoption doesn’t happen by accident. It needs leadership. Whether that’s appointing an internal AI champion, setting up a taskforce, or bringing in external support — someone needs to drive the change, guide the rollout, and ensure AI is used safely and effectively across the organisation – whatever the size of organisation.

The government’s decision to bring in a specialist cohort shows they understand this. It’s not just about having the tools; it’s about having the right people in place to help provide strategic direction, lead the change and support employees with adopting AI.

Why this is relevant for business leaders

This scheme is more than just political headlines. It’s a sign of the direction of travel, and one that every organisation should take seriously. Here’s why:

• It signals government commitment to AI at a national scale — and that means regulation, funding, and infrastructure will likely follow.
• It’s proof that AI isn’t just for Big Tech. If the public sector — notorious for complexity and bureaucracy — can benefit, so can your business.
• It highlights the importance of AI models. These tools are increasingly being used to create custom internal assistants, automate knowledge work, and support frontline staff — just like we help our clients do every day.
• Most importantly, this is a moment of validation. AI isn’t a passing trend. It’s becoming a cornerstone of how work gets done – across sectors, departments, and disciplines.

Putting AI to Work

The fellowships, due to start in early 2026, will sit within the government’s AI “incubator” programme. The idea is to match top-tier AI talent with real-world public service problems and build practical tools with tangible benefits.

According to Technology Secretary Peter Kyle, this isn’t about abstract theory. It’s about “delivery, not just ideas.”

One early success story comes from a tool called Caddy, developed with Citizens Advice, which helps call centre workers instantly search government documents. An initial trial suggested it could cut call waiting times by half. That’s a serious win for both staff and service users and a glimpse of what’s possible when AI is done right.

At South West AI Solutions, we’ve seen this play out firsthand. We help organisations build similar tools, like internal AI buddies that assist with customer enquiries, internal HR buddies to support with internal staff enquiries, and AI assistants that help reduce hours of work into seconds.

This new scheme is a clear step in the same direction: applied, open, and human-focused AI that works with people, not around them.

Final Takeaway

If the UK government is hiring AI experts to boost productivity and improve decision-making, that’s a strong signal for business leaders. This isn’t about hype. It’s about delivering real results.

Want to Build Your Own AI ‘Buddy’?

At South West AI Solutions, we help organisations across the South West adopt AI in a structured, human-first way. From custom internal assistants to team training and governance, we make AI simple, safe, and strategic.

If you’re wondering where to start — or how to scale what you’ve already begun — get in touch. Let’s help make AI work for your and your organisation.