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AI can save UK govt £40B annually, revolutionize public services: Blair Institute

AI can save UK govt £40B annually, revolutionize public services: Blair Institute

AI will soon be used to pre-check applications for correct information, triage cases by calculating complexity and routing them appropriately, automate low-risk repeatable tasks, identify important information, summarize key features of cases and conduct quality assurance on cases using anomaly-detection tools, a new report states.

AI can assess the complexity of cases and triage them accordingly. By calculating the complexity level, AI systems can route simpler cases through expedited processes, reserving human expertise for more complex or high-impact applications.

In a joint report titled “Governing in the age of AI: A new model to transform the state,” the Tony Blair Institute for Global Change and Faculty have collaborated to explore how AI can revolutionize government operations.

The report highlights that AI can streamline government processes, making them more efficient, cost-effective, and transparent. For instance, implementing AI could save the UK government up to £40 billion annually by optimizing routine tasks and services. AI’s ability to handle repetitive processes can transform public services, making them more personalized and human-centric.

According to a recent report by McKinsey Digital, generative AI is expected to increase productivity for private-sector companies by between $2.6 and $4.4 trillion annually.

The future of Britain initiative also details how AI tools can address current inefficiencies in public services, including the reduction in bed occupancy rates in the NHS, saving teachers’ time by automating lesson planning and grading, expediting benefit claims processing, and slashing consultation costs, accelerating decision-making processes in various departments.

In addition to this, the report calls for decisive action to leverage AI’s transformative potential, positioning the UK as a leader in governing in the age of AI.

The report claims that unlocking the benefits of AI will involve both initial and ongoing costs, with analysis suggesting that over five years, the total cost might reach £9.2 billion (roughly $11.7 billion), or £1.8 billion per year (around $2.3 billion), with a total return in productivity gains of £199.7 billion (roughly $254.9 billion), or £40 billion (around $51 billion) per year.

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