Government plans to embed AI across public services face serious challenges due to outdated IT systems, insufficient funding, and a shortage of skilled workers, MPs have warned.

A report by the Public Accounts Committee (PAC) revealed that over 20 legacy systems still await financial support for upgrades, with nearly a third of central government systems considered obsolete as of 2024.

While the government has outlined an ambitious AI strategy to improve efficiency and stimulate economic growth, including the recruitment of 2,000 new tech apprentices, the PAC report casts doubt on the public sector's readiness.

The committee highlighted ongoing digital skills shortages, driven partly by uncompetitive pay compared to the private sector, and raised concerns over the lack of transparent systems to track and assess AI-driven decisions.

The PAC urged the Department for Science, Innovation and Technology to set a clear funding plan within six months for the most at-risk systems and warned that failing to act could lead to greater costs down the line.

It also called for stronger leadership, better oversight of AI pilot schemes, and increased public transparency to build trust in how government uses AI.