The government has announced a new ‘test and learn’ approach for spending on AI and digital projects in the public sector.

The technology department said that how AI experiments and other digital projects are funded will be “overhauled and simplified” in order to cut down waste in taxpayer funding.

This will involve bringing in a “start-up mindset" to testing the application and use of AI experiments on small budgets, and then building on proof of success.

Progressing in stages, projects will be supported by increasingly larger tests if early trials demonstrate the potential to save money and improve public services.

The move comes after a review into current spending practices reveals that they can be “too complex” for AI and digital projects, leading to delayed decision-making and innovation.

The government said that from April, four new approaches to spend on innovation will be tested, including building on the success of Gov.uk Chat, the government’s experimental generative AI chatbot, to provide “staged funding” for innovation.

There will also be a strong focus on developing new outcome metrics and evaluation plans for major digital projects, to ensure that that these deliver value for money.

“Technology has immense potential to build public services that work for citizens," said technology secretary Peter Kyle ahead of a speech to announce the reforms at techUK. "But a decades old process has encouraged short-sighted thinking and outdated tech, while stopping crucial innovation before it even gets going.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."

The government's review follows research that demonstrates one in four of the digital systems used by central government are outdated. For the worst affected organisations, this figure is nearly triple that at 70 per cent.

With this in mind, alongside an overhaul to AI and digital funding, the government is also testing a new funding model for technology and cybersecurity problems, taking into account the spending and security risks posed by depending on archaic systems that are no longer fit for purpose.

“This review will help us build technology that will mean 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, and it will mean we can build new tools to speed up wait times for doctors’ appointments and get the NHS back on its feet are built," continued Kyle.

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