Why AI‑powered managed services matter for UK public sector

As public sector organisations face mounting pressure to provide efficient, secure, and user-centric services, managed services and AI are key to overcoming systemic challenges. The UK Government’s 2025 blueprint outlines a vision for modern digital government, focused on transparency, resilience, productivity, and agile delivery, empowering both civil servants and citizens through technology-driven transformation.

The stakes for public sector have never been higher. What if there were proven ways to not only meet these challenges, but to turn them into opportunities for transformation and lasting impact? As you explore the article below, consider this: how can managed services and AI unlock the full potential of public service delivery and redefine what’s possible for our communities?

The Government’s digital blueprint: Challenges and opportunities

The UK Government’s ambition is clear: to achieve £45bn in annual AI-driven productivity savings by 2030, with one in ten civil servants evolving into digital professionals. But the path to this future is obstructed by the reality of the present.

In January 2025, the Government’s Blueprint for Modern Digital Government laid bare the “deep systemic challenges” holding us back: institutionalised fragmentation, persistent legacy risks, siloed data, and a critical skills shortfall.

For the civil servant, this reality often looks like time-consuming manual processes and “firefighting” technical issues instead of delivering policy. For the citizen, it creates a disconnect between the seamless digital services they use in their private lives (banking, shopping) and the friction they face when accessing public services.

The question is no longer if we should transform, but how. How do we bridge the gap between legacy infrastructure and an AI-enabled future?

The blueprint for modern digital government carried on to outline the vision for a modern digital government, which was as follows:

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Easier lives:

delivering transparent, next-generation public services that do the hard work for the public, can be accessed and used by everyone who needs them, and are designed around the user.

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Faster growth:

helping businesses start and scale by delivering services that work as well as they do for citizens.

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Firmer foundations:

securing public services so they are trustworthy and resilient.

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Smarter organisations:

changing how delivery is done to embed the right ways of working, moving at the same pace that people’s lives do, and working as agile, user-centred, multidisciplinary teams by default.

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Higher productivity and efficiency:

saving public money, delivering outstanding public services at a price we can afford, and enabling front-line workers to focus on delivery.

The digital experience is no longer a luxury; it’s a necessity …

Before departments can scale AI safely and effectively, they need something fundamental. The operational stability, data foundations and freed-up capacity to innovate. That’s where intelligent managed services becomes essential.

Lets take a look at the key ways that all of this can be achieved through a values-driven, efficient, and innovative managed service, with AI woven throughout as a catalyst for change.

Breaking down barriers: From legacy systems to agile delivery

Public sector organisations are contending with the complexities of outdated systems, disjointed data, isolated processes, and the urgent need to build AI-ready infrastructure and skills. Consequently, civil servants and front-line workers frequently find themselves weighed down by time-consuming manual processes, inefficient workflows, and ongoing technical complexity, as opposed to focusing on what matters: serving the public across the country.

At the same time, citizens have come to expect digital services that are not only intuitive, efficient, and reliable but also secure and increasingly intelligent; regardless of whether they are renewing a licence, accessing their health records, or interacting with local authorities.

The disconnect between what the public anticipate and what is delivered can undermine trust and impede meaningful progress.

How managed services unlock efficiency, security and innovation

AI-enabled managed services play a pivotal role in supporting and enabling effective, intelligent, and cost-efficient digital experiences for the public. By embedding AI into service delivery, public sector organisations can automate routine tasks, gain actionable insights from data, and deliver more personalised, proactive services.

Innovative managed services should do more than just keep the lights on – they should underpin the delivery of smarter, AI-powered public services.

By expertly managing IT infrastructure and creating applications tailored to the needs of establishments and their stakeholders, partnering with an appropriate managed services provider, such as Version 1 and our ASPIRE framework, allows the public sector to update operations and minimise manual work. This leads improved public spend and greater efficiency, improving experiences for both civil servants and citizens.

Empowering civil servants and citizens through AI‑powered transformation

Value, agility, and innovation

Managed services built on a foundation of agility, innovation, measurable value, and AI-driven continuous improvement place automation, and business outcomes at the heart of service delivery. Agile services streamline operations and eliminate unnecessary overheads, helping to spend less public money while delivering greater return on investment

Efficient services: communicate and automate

Efficient managed services should include clear communication, knowledge sharing, automated testing, AI-powered analytics, and proactive support. These enable quicker problem resolution, improve service quality, empower front-line workers to focus on strategy, and deliver more consistent services to citizens. Our AI-powered service delivery, which includes Gen-AI prompting, delivers a 60% improvement in problem resolution

Empowering staff: from reactive to proactive

AI-powered automation of routine tasks and round-the-clock support allows front-line workers to move beyond technical firefighting, focus on innovation, and collaborate with AI squads to deliver greater value to citizens. Zero-touch support through simple conversational prompting dramatically reduces the support burden for frontline workers

Continuous improvement: measuring what matters

Value-led managed service agreements drive continuous improvement through regular reviews, AI-powered analytics, and feedback, helping public sector organisations adapt, improve efficiency, lower costs, and increase satisfaction for front-line workers, civil servants, and citizens. In one such customer case, ongoing management and optimisation of software assets resulted in a saving of approximately €33m over a 9-year period

Enhancing citizen and civil servants experience: accessibility, and reliability

Managed services can deliver secure, user-focused digital platforms, leveraging AI to personalise citizen interactions, predict needs, and ensure equitable access to public services. Automation and cloud technology keep services optimised, current, and always available, while protecting sensitive information. AI-infused service delivery exemplified in our Engage model, takes advantage of AI-driven digital channels, AI operations and automation to deliver an optimal experience to civil servants

Building trust in public services

Managed services build public trust by ensuring transparency, robust security, compliance, and responsible AI governance, enabling citizens to interact with digital platforms confidently and safely, fostering long-term engagement and satisfaction with public sector services.

Support stable business growth

AI-enabled managed services power start-ups to scale efficiently by automating routine tasks, providing real-time analytics, and ensuring robust security. This proactive approach minimises risks, supports rapid adaptation to market changes, and frees teams to focus on innovation, driving stable and sustainable business growth. We used advanced AI and machine learning to create a solution that shortened sales cycles by up to 90% in some instances and boosted prospect conversion efficiency by 50%

Underpin smarter organisations

AI-enabled managed services drive transformation by embedding agile, user-centred, multidisciplinary teams at the heart of delivery. We empower organisations to adapt rapidly, integrate best practices, and align services with citizens’ evolving needs – ensuring that operations keep pace with real life and foster a culture of continuous improvement

ASPIRE: Driving public sector transformation forward

Our ASPIRE managed services, powered by AI, enable public sector transformation by empowering staff, enhancing citizen experiences, and delivering value. The framework accelerates responsible AI adoption through specialist teams, strong governance, and skills development, embedding ethics and transparency to build public trust and promote sustainable innovation.

Our case studies speak for themselves: when technology is harnessed with vision and expertise, the digital experience becomes a source of trust, efficiency, and progress for all.

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London Borough of Croydon:

Accelerated transition and digital transformation

Faced with the challenge of transitioning to cloud-based infrastructure under tight timelines, Croydon Council partnered with us for ASPIRE managed services. The result was a seamless migration, proactive problem-solving, and rapid identification of areas for improvement. Staff benefited from responsive support and pragmatic solutions, while citizens experienced more reliable and accessible public services across education, housing, transportation and social services.

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TRL and National Highways:

Next generation road asset management

We collaborated with TRL to deliver a new Microsoft Azure platform for road asset management, replacing legacy systems and enabling efficient data migration. Working together, we ensured 100% SLA achievement, automated database restores (reducing manual hours by 95%), and optimised non-production environments (cutting consumption by 70%). Front-line workers enjoyed streamlined workflows and improved reporting, while citizens benefited from reduced congestion, more reliable journey times, and better air quality.

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ASPIRE managed services

The UK Government’s 2025 Blueprint asks for easier lives, faster growth, and smarter organisations.

AI-enabled Managed Services is a critical component to delivering this. By breaking down the barriers of legacy technology and securing the data foundations, we give public sector organisations the gift of capacity. The capacity to innovate, the capacity to serve, and the capacity to lead.

With ASPIRE, we are empowering the digital experience to transform outcomes for civil servants and citizens.

To learn how your establishment can benefit from our expertise and discover the possibilities for your AI transformation, please contact us today.

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