Today, in the UK Government’s Spring 2025 budget, the UK chancellor has committed £3.25 billion to integrate AI and technology into public services, aiming to boost efficiency and economic growth. A minimum of 10% of the defence budget will be allocated to new technologies, including AI and drones, which will create opportunities for tech firms and startups.
The integration of AI and technology into public services and defence is likely to have several effects on jobs:
- Demand for Skilled Workers: There will be an increased demand for highly skilled workers, particularly in engineering, AI development, and data analysis. This could lead to job creation in tech and related sectors.
- Reskilling and Upskilling Needs: Existing public sector employees may need to undergo training to work effectively alongside new technologies, leading to initiatives focused on reskilling and upskilling.
- Potential Job Displacement: Some traditional roles may be automated or become redundant, necessitating workforce adjustments and support for affected workers.
Overall, while there are opportunities for job creation and transformation, there will also be challenges related to job displacement and the need for reskilling.
The Office for Budget Responsibility future projections have been readjusted too.
Every cloud has a silver lining, and Jamie Snaddon, EMEA Managing Director, 8×8 provides some commentary and insights into today’s news.
All comments below are attributed to Jamie Snaddon:
“The news about jobs being cut from the Civil Service will come as a blow to those in the Service, even if it had been pre-announced. Talk about it being over five years or that it’s just restoring the staffing number to pre-pandemic levels will be little comfort to those impacted.
“As the UK Government has said, ‘the world has changed’ and we need to accept this. While some may resist or try to deny this shift, the reality is clear: the world has changed — and we must adapt.
“Technology is the answer — technology can solve both ends of the Civil Service problem for a better customer experience and staff user experience – as well as modernising the skillset of the civil servants.
“AI-enabled technology will help streamline back-end operations – eliminating duplication, providing quality insights, and ensuring a more joined-up picture across departments. But those internal gains aren’t just about efficiency; they directly impact the experience citizens have when they try to engage. The real test of any transformation is how it improves people’s lives – and that starts with how they interact with government services.
“Let’s start with one of the most basic engagement points between the public and the civil service: when you need to contact a government service – DWP, HMRC, or the Passport Office to cite three examples. You can be on hold for hours. That’s especially frustrating in an era where people want the same speed and simplicity from government services as they do from ordering a taxi, streaming a film, or checking bank details online.
“Far too many government departments rely on siloed systems for voice calls, email, live chat, and internal messaging. These systems often don’t talk to each other, and worse, don’t provide a unified view of the citizen journey. That leads to frustration on both sides: citizens feel like they’re being bounced around, and staff are constantly playing catch-up. It’s not a time sink, it’s a time dump. Hours that people never get back.
“When integrated into communications platforms, AI can handle many of the routine tasks that currently occupy civil servants’ time—everything from routing calls to answering frequently asked questions. Intelligent virtual assistants can be deployed across voice and chat channels to handle common queries 24/7, freeing up human agents to focus on more complex or sensitive issues. Natural language processing ensures these interactions feel human, not robotic.
“That’s where digital transformation comes in. But not just digitising paper forms or moving call centres to the cloud—though those things matter. There can be a deeper, structural shift in how services are designed, delivered, and measured. One that puts customer experiences and user experience first, removes duplication, and automates what can be automated.
“What’s more, AI-powered analytics can monitor service levels in real-time, identify bottlenecks, and suggest process improvements before problems escalate. That means smarter decisions, faster responses, and better outcomes for the public.
“And this isn’t science fiction—it’s already happening. In local councils, for instance, AI chatbots are being used to handle thousands of housing benefit queries, significantly reducing workload. In the NHS, AI-driven triage systems are speeding up patient access to care. These examples show that when used thoughtfully, AI can enhance—not replace—human judgment and compassion.
“But for all this technology, it still needs people at the heart of it and that’s where this is an opportunity. People aren’t being made redundant overnight, so there’s a chance here for every single civil servant to go and train up on AI and learn how to use it and work with it. In many cases, people won’t lose their jobs to AI, they’ll lose their jobs to colleagues who know more about using AI.
So, what does the future look like?
“In my view, the civil service of 2030 will be smaller, yes—but smarter, faster, and more responsive. It will be underpinned by cloud-native platforms that unify communication, automate routine work, and empower staff to do what they do best: serve the public. It will use data, not guesswork, to shape policy and delivery. And it will be resilient—able to adapt quickly to changing needs and crises.
“This transformation won’t happen overnight, and it won’t be easy. But with the right partners, like 8×8, the UK civil service can turn the challenge of workforce reduction into a catalyst for innovation.
“We have the tools. We have the talent. Now is the time to build a smarter state – one conversation at a time.”
