The use of artificial intelligence (AI) in the UK government could result in annual savings of nearly £5 billion and reduce the need for tens of thousands of administrative staff, according to Alex Chisholm, the civil service chief operating officer and permanent secretary of the Cabinet Office. Chisholm stated that AI and automation are expected to reduce government operational delivery costs by 31%, with potential productivity savings of £4.8 billion per year. The aim is to streamline administrative tasks and create a more efficient system where citizens only need to provide information once, rather than repeatedly for various government services. The government is also working on digital transformation initiatives to save an additional £365 million annually and improve the quality of services.

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In parallel, the government is focusing on addressing legacy IT systems and has identified 153 high-risk systems that require remediation. These efforts, along with funding commitments, are part of a broader strategy to modernize government operations and reduce costs. Chisholm emphasized the need for reform as healthcare spending rises faster than GDP and the aging population places greater demands on government services.

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