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bespoke procurement services
Our bespoke procurement services provide you with access to experienced practitioners, promptly and efficiently meeting your needs when required.
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Explore our latest energy updates
We know that securing energy contracts can be a complex and difficult process, but we are here to help you. Explore our Energy Hub to find help and guidance, latest updates and more.
Explore now

Artificial intelligence (AI) and automation are revolutionising the ways in which everyday people live and work. Already, AI initiatives are being rolled out at a startling pace ‒ to fast-track patient diagnoses in NHS trusts, for example, or drive value and efficiency across the civil service.

Today, AI is fundamental to the UK government’s strategy for delivering a ‘decade of national renewal’. January 2025 saw the launch of the AI Opportunities Action Plan, for instance, which lays the foundations for AI adoption and growth of its capabilities across the public and private sectors – and establishes how the UK intends to position itself as a global leader on AI.

In response, a key question to for organisations across all sectors is: do the efficiency gains of artificial intelligence outweigh the technical, ethical and sustainability risks associated?

Unlocking the benefits of automation and AI

One of the most obvious benefits of artificial intelligence is its utility. It can automate repetitive and controlled tasks, but also creates efficiencies in higher-level decision-making and data collection. Once fully implemented, AI will touch every aspect of our personal and working lives. In many ways, this is already the case – and the potential for organisations to radically redefine how they operate is very real.

Whether it’s the introduction of game-changing AI healthcare assistants to reduce administrative bottlenecks and improve patient care or the rollout of experimental AI tools to increase the availability of planning data and empower councils to make more informed planning decisions – AI has potential applications across every sector and within almost every organisation.

Recognising this, the UK government has pledged to back AI adoption ‘to the hilt’. “Artificial Intelligence will drive incredible change in our country,” confirmed Prime Minister Sir Keir Starmer. “From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.”

Crucially, with resource and budget a recurrent issue, AI and automation has emerged as a means of driving value, delivering efficiency and safeguarding essential services. In the very near future, these technologies won’t be optional extras ‒ they will be key strategic enablers for economic and environmental prosperity and growth.

For instance, in January 2025, the UK government announced that an average of £200 million in private sector investment had been funnelled into the UK’s burgeoning AI sector every day since summer 2024. And, that same month, it was announced that a reliance on old and outdated technology has resulted in the public sector missing out on £45 billion in productivity savings annually. Collectively, these statistics help to highlight the sheer scale of AI opportunity – but there are valid concerns with the implementation of these new technologies.

The challenge of AI implementation

AI adoption will require transformation on all fronts – from a technical standpoint, most notably, but also from a skills, workflow and workplace cultural perspective. Even at the best of times, change is an uncomfortable process – but the rapid uptake of AI means that organisations and their employees will now have to move at a much quicker pace.

On the technical front, the UK government is fast-tracking the rollout of critical infrastructure – from data centres to high-capacity energy connections – to power its network of upcoming AI Growth Zones.

But, for the most part, public and private sector organisations will still be left to their own devices where AI investment is concerned. At a time when many organisations are preoccupied with more immediate challenges – service demand, for example – it calls into question if there is enough budget, buy-in and internal resource to fully commit to AI investment in the immediate term.

Additionally, while AI has the potential to provide ground breaking solutions to urgent issues like climate change, the infrastructure required comes with a significant energy and emissions burden. From increased water usage to greenhouse gas emissions and the potential for electronic waste, AI infrastructure must be managed, monitored and measured responsibly to ensure environmental impacts are minimal – and that requires robust legislation that compels organisations to act.

Of course, AI infrastructure means little without the skills necessary to make the best use of it. In many cases, organisations will have to invest in rapid training and upskilling initiatives to give employees the confidence and baseline knowledge needed to use AI effectively. As everyday tasks are automated, workflows will change dramatically – leading to significant time and resource savings. However, there’s also likely to be disruption in the short-term as employees acclimatise to new ways of working – and, if poor AI practices take root, the benefits to organisations and employees will be severely limited.

Finally, just as important as training is workplace culture and change management. Naturally, whenever transformation is on the agenda, there will always be some resistance to change – and AI adoption is no different. Organisations may have to go further to demonstrate how AI can directly benefit frontline employees ‒ by prioritising employee awareness and education, for instance.

 

Ensuring ethical use in the AI era

The introduction of AI also raises many ethical concerns. For instance, as more organisations prioritise digitisation – specifically AI and automation – to cut costs and streamline services, there are valid concerns that job losses will follow. Already, 10,000 civil service jobs are said to be at risk. Employees will be understandably resistant to buy into innovations that may end up replacing them. For organisations, finding the balance between efficiency and the fair and ethical treatment of employees will be essential.

Similarly, as more processes are automated, we need to guarantee that AI won’t discriminate against organisations or individuals. We know from experience that technology can have built-in biases. If hiring, planning or procurement decisions are automated, organisations must ensure that the criteria used are fair and balanced. It’s why some level of human oversight will always be required. However, with few legislative levers to enforce fair and ethical use, organisations will have no formal obligation to screen out discrimination.

Consider the implications for SMEs, VCSEs and start-ups. In recent years, the UK government has emphasised public sector engagement with smaller, more agile organisations. It’s one of the cornerstones of the Procurement Act 2023. But with fewer resources to hand, there is a risk that smaller organisations may find themselves at a disadvantage. AI and automation are intended to level the playing field, allowing SMEs to engage with opportunities that were previously out of reach. But any organisation unable to take advantage of the AI opportunity may find itself at a significant disadvantage. In this sense – rather than an enabler – AI may become yet another barrier to entry.

Ultimately, the efficiencies that AI can bring are a positive force. Providing it is used safely with the relevant security controls in place, AI is poised to become the cornerstone of public service provision – automating workloads and alleviating pressure points for public sector professionals and procurement teams alike.

To find out more, visit our technology and communication hub where we help organisations to source cost-effective solutions with our range of frameworks covering hardware, software, multi-functional devices and more.
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The YPO Team

YPO supplies products and services to a wide range of customers including schools, local authorities, charities, emergency services, public sector and other businesses such as nurseries and care homes. YPO are 100% publicly owned, by 13 local authorities, which means the profits made are returned to public sector customers, delivering even better value for money.