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AI

The shift from AI experimentation to AI readiness in UK public services

1/10/2026 Read time: 1 min

AI continues to reshape the UK public sector as regional and local agencies discover ways the technology can help improve productivity, relieve pressure on overstretched services, and deliver better experiences.

The National Health Service (NHS) has used AI to perform 2.4 million chest X-rays. The UK government has worked with industry to deliver more than 1 million AI courses toward a goal of upskilling 10 million workers by 2030. The government also has designated five AI Growth Zones to facilitate investment and accelerate data center buildout.1

With progress comes some growing pains.  

Government officials find that deploying AI effectively is far more complex than rolling out new software. The true challenge — and the variable that increasingly determines success or failure — is readiness. Agencies must ensure underlying technology estates, data, governance and operating models can support AI safely and reliably at scale.

Neil Bacon and John Cheal, associate partners in Kyndryl Consult, share why AI readiness is less about chasing use cases than making targeted modernization decisions without losing control as AI becomes more powerful and commonplace.
 

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Government interest in AI is growing rapidly. Where are agencies running into the most challenges?

Bacon: The biggest constraint we’re seeing is everything around the model. Many public sector organizations are working with estates built over decades, with technical debt, dispersed data and dependencies that make even small changes difficult.

AI increases the pressure, making integration, security, assurance, skills and service management even more important. The challenge is now to create the right conditions for governing, supporting and scaling AI.

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How does AI change the work of understanding and modernizing complex estates?

Bacon: One of the most useful roles for AI is speeding up discovery. AI-enabled tools can help teams examine applications, dependencies and infrastructure. They can also surface patterns and identify opportunities that might otherwise take specialists months to uncover.

But faster analysis doesn’t make decision-making automatic. People still need to interpret evidence, understand context, and weigh risk, necessity and cost. AI can help specialists shift their focus from information gathering, but the demand for critical thinking doesn’t change.

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Why not respond with a major, estate-wide transformation program?

Cheal: Large, estate-wide transformations can still be necessary and deliver important outcomes. However, scale isn’t the same as progress. A major program can look decisive, but it can also create long timelines, complex dependencies and pressure to show value before the underlying work is completed. These issues are particularly challenging in public services because continuity isn’t optional.

A better approach is to think in terms of what has to change to improve a specific service or outcome. Some systems need substantial modernization. Others may be stable, well-controlled and fit for purpose. The goal isn’t to replace everything but to make continuous changes that remove barriers without introducing unnecessary risk.

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If replacement isn’t the goal, how should leaders decide what to modernize?

Bacon: Workload by workload. A citizen-facing service, a case-management platform, a finance system and a policy function don’t carry the same risks, dependencies or sources of value. That means they shouldn’t be pushed through the same transformation pattern.

Deciding whether to retain, remediate, replatform, replace or retire certain applications or systems is an important choice, but what really matters is how and why the decisions are made. Think in terms of mission value, feasibility, service criticality and risk. This approach keeps investments tied to results such as better citizen journeys, reduced administrative lag, stronger data quality, lower operating costs or improved recovery.

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What does outcome-led modernization look like in practice?

Cheal: It starts with a service problem, not a technology target.

Here’s a good example from the United States. When the US federal government began to wind down pandemic-era programs, one state government had to ask more than 1.5 million existing recipients to reapply for benefits. Older technologies and working practices in the state’s contact centers forced citizens to wait up to two hours on calls, and post-call work could take as long as 25 minutes.

As part of a broader modernization program, Kyndryl helped replace interactive voice response and call center solutions, redesign workflows, and improve routing and authentication. After launch, nearly 3,900 agents were able to automatically receive information about past conversations and transfer calls more easily to relevant community partners. The platform also supports generative AI, and improved reporting and controls give both the public and the legislature better visibility into operations and performance.

But the technology work isn’t the core lesson. What matters in this context is that modernization was anchored in service capacity and continuity.

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What changes when AI becomes part of a live public service?

Bacon: You have to design trust, fairness, governance, resilience and control into the service from the start. Public agencies need to show how decisions are made and challenged: who owns the service, where human review sits, how issues are escalated and what can be audited. Trust can’t be added as a communications exercise after deployment.

Resilience is particularly important. Public services can’t simply stop if a model, data source or underlying system fails. Continuity and recoverability need to be reflected in the architecture, testing, operating processes and governance from the outset. And because models, data, user patterns and risks change over time, teams have to continuously maintain those controls.

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How does digital sovereignty fit into this conversation?

Cheal: Selectively rather than as a single, universal requirement. Since the UK government doesn’t have an overarching digital sovereignty policy and there’s no universal definition or agreed outcome, it’s more useful to treat sovereignty as a workload question than as a blanket objective for the entire estate.2

Leaders should instead focus on understanding where sensitive data is processed, who can access it, how services can be recovered, how risk is managed and whether workloads can move or work together as requirements change. The right answer may differ by service.

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What should organizations assess before trying to scale AI?

Cheal: Start with the mission outcome and then test whether the surrounding environment can support it. That means looking at the service requirements, intended uses and measures of success, then examining data quality and lineage, integration, privacy, security, continuity and recovery.

The operating model matters just as much. Who owns the service? Where does human control sit? Are assurance responsibilities clear? Does the workforce have the skills and leadership support to adopt the change?

The point isn’t to produce another maturity score. It’s to expose practical barriers, prioritize investment, and create a roadmap that can be funded, governed and measured. From there, teams can test a structured use case and reuse what works.

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Once those readiness gaps are clear, how do agencies move from assessment to action?

Bacon: The work becomes more deliberate. Agencies first need to align on the service outcome, priority services, acceptable levels of risk and decision-making criteria. From there, they can assess readiness gaps across the estate and operating model, then prioritize opportunities based on value, feasibility and risk.

The next step is to prove the approach through a bounded delivery or use case that tests the technology and the controls and operating model needed to support it. Once that foundation is proven, agencies can scale by reusing assurance evidence, platforms, skills and delivery patterns spanning other services.

Overall, the question shifts from “Can we deploy this?” to “Can we operate it safely, recover it when necessary, and improve it over time?”

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Within the current climate, how does Kyndryl think about building AI-ready public services?

Cheal: Our perspective comes from decades of operating complex, mission-critical environments. That experience has taught us that a promising AI use case isn’t enough. Systems and processes have to work within the realities of the estate and remain governable, resilient and supportable after launch.

That means being selective about what you modernize, understanding the environment before making decisions, and bringing the right people together around a clear service outcome. Human accountability and continuous operational improvement are equally important.

It’s worth noting that these aren’t uniquely AI disciplines. However, AI makes them more important. The real test is whether the organization can keep adapting as the technology, data and risk environment change.

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How can Kyndryl help agencies build a modernization roadmap?

AI is giving public sector leaders a reason to rethink modernization, not as a one-time replacement program but as a series of targeted decisions. Within this framework, the goal isn’t to modernize everything at once. The strategy is to make deliberate changes that strengthen resilience, improve services and create the foundation to scale AI so it can consistently deliver meaningful value.

A Kyndryl AI Readiness Assessment and Executive Workshop can help you identify priority opportunities, uncover readiness gaps, define a practical 90-day modernization roadmap, and establish a controlled proof of value.

References

1 AI opportunities action plan: One year on, Department for Science, Innovation and Technology, January 2026

2 Digital sovereignty, House of Commons Library, March 2026