Select committee: Public Accounts Committee
Conclusion 21
18th Report - Use of AI in Government
Published 26 Mar 2025
Addressed to HM Treasury
Public Accounts Committee Use of AI in Government All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
In its January 2025 State of digital government review, DSIT reported that government procurement processes had not adapted to the changing nature of the technology market, which has seen a shift from upfront capital purchases to subscription–based models, and greater consolidation of the supply chain.51 Written evidence we received from technology suppliers, third–sector bodies and academics raised concerns that the dominance of a small number of large technology suppliers in the AI market risks stifling competition and innovation.52 Concerns were also raised that government procurement approaches were ill–suited to a dynamic, fast–paced market, increasing risks to value for money from vendor lock–in and the inability to adapt and take advantage of rapid technological development.53
From: Public Accounts Committee, 18th Report - Use of AI in Government (HC 356), 26 March 2025
Government response
Latest Treasury Minutes progress report to the Committee of Public Accounts on the Eighteenth Report of Session 2024-26
The government responded to the whole report on 4 June 2026.
Treasury minutes: Government response to the Committee of Public Accounts on the Eighteenth report from Session 2024-26
Published 18 September 2025.
Treasury minutes: Government response to the Committee of Public Accounts on the Eighteenth report from Session 2024-25
Published 10 July 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it agrees with each of the Committee's recommendations, setting target implementation dates between October 2025 and June 2026.
- On legacy technology, it agrees and says GDS will define "consistent metrics and methods" to measure the ongoing costs of legacy systems and the estimated cost of failing to remediate or replace them, with a target date of January 2026.
- On transparency, it is "aiming to publish" Algorithmic Transparency Recording Standard records for all currently identified in-scope tools in government departments (not including arm's-length bodies) "by the end of 2025".
- On digital skills, it agrees and says all executive committees will be required to include digital leaders and boards to appoint digital non-executive directors "by 2026", with further detail in the forthcoming Government Digital and AI Roadmap.
- On scaling AI pilots, it agrees and says a proposal is "currently being developed" in the Public Sector AI Adoption programme, with a target implementation date of May 2026.