AI in the Public Sector: Transforming Government and Healthcare

Public sector organisations are exploring how AI could improve efficiency and citizen outcomes, but progress with implementing the technology depends on people, governance, and trust.

Our Public Sector 2.0 roundtable brought together leaders from local government and healthcare to discuss how to build the right foundations for AI adoption and how data, AI, cyber and quantum can drive business transformation in public sector organisations. The discussions revealed a shared determination to modernise operations, but also a recognition of the significant challenges that must be addressed first.

Across every conversation, a key theme stood out: AI success depends as much on people and governance as on technology.

Public sector organisations are eager to harness AI, from the NHS using diagnostics tools to councils exploring automation. But trust, data quality, and security remain the biggest barriers to adoption.

Attendees highlighted that progress often stalls because:

• Governance frameworks are still evolving, leaving uncertainty about accountability and ownership.
• Data quality and fragmentation limit how confidently AI can be deployed.
• Skills gaps and trust issues slow down adoption, as teams question AI’s impact on roles and responsibilities.
• Siloed initiatives lead to duplication of effort and missed opportunities for collaboration.

Despite these challenges, there was strong optimism in the room. Leaders agreed that by starting small, demonstrating measurable value, and embedding security and governance into everyday operations, organisations can build both confidence and momentum.

AI offers the potential to significantly improve accessibility and outcomes across public services.

One key use case discussed was predictive workforce planning, using AI to forecast staffing needs and ensure resources are available where and when they’re most needed.

In healthcare, AI-driven discharge management can help predict patient discharges, reduce bed occupancy, and coordinate social care packages more effectively, improving outcomes for patients and easing pressure on staff.

Additionally, AI agents could help citizens access information more easily by automating responses to common public inquiries, streamlining services, and improving the user experience.

AI can strengthen decision making by creating smarter, data-informed governance across the public sector.

One area of focus was the potential to standardise information governance (IG) across organisations, ensuring consistency, compliance, and easier data sharing.

Other opportunities include:

• Automating risk management to identify and respond to emerging issues faster.
• Using AI tools to analyse financial and operational data for greater efficiency.
• Reducing duplication in bureaucratic processes through intelligent automation.

By integrating AI into governance processes, councils and NHS organisations can build more transparent, efficient, and citizen-focused services.

Innovation in AI must be balanced with strong ethical and governance practices. As one participant put it, “If you wouldn’t put it in an FOI, don’t give it to AI.”

The group emphasised that security should be an enabler, not a blocker. By embedding security and data governance teams within operational environments, organisations can empower innovation safely.

Key priorities include:

• Implementing clear data governance frameworks.
• Standardising access control and data-sharing agreements.
• Promoting staff awareness and confidence through training and transparency.

This approach not only reduces risk but also encourages a culture of responsible experimentation.

Looking ahead, the message from the roundtable was clear: AI is here and the public sector must embrace it, responsibly.

To succeed, organisations should start with targeted use cases that deliver visible benefits, laying the groundwork for broader adoption. With the new National AI Policy, collaboration between central and local government will be key to ensuring consistency, governance and avoiding a fragmented approach.

By sharing successes, frameworks, and lessons learned, the public sector can accelerate AI adoption, moving from isolated pilots to scalable, sustainable transformation.

So, what’s next?

Celerity and IBM Client Engineering are continuing the conversation, helping organisations identify practical use cases, develop governance frameworks, and demonstrate measurable outcomes from AI.

Interested in being part of this discussion? Join organisations like Transport for Greater Manchester, NHS Shared Business Services and Manchester City Council at our next roundtable in Manchester. Register your interest here.