Reflections from 'Building the Smarter State': Moving from AI Hype to Public Sector Reality

Published 19/05/26 under:

Members of the Kerv Public Sector team attended techUK’s Building the Smarter State conference in London recently, bringing together leaders from across government and the technology community.

The conversations were frank, insightful, and grounded in the realities of delivering public services today.

While there is strong optimism around AI and digital transformation, a consistent message emerged: the challenge is no longer about whether to innovate, but how to make it happen, and how to make it happen at scale.

From Optimism to Execution

Across the panel sessions, local and regional government leaders described their current position with AI using a few telling words: optimism, fragmentation, and scale. There’s no shortage of ideas or pilots – in fact, one speaker talked about having “more pilots than BA” – but too few initiatives are actually making it into fully operational services. The blockers are rarely technical. Instead, they lie in fragmented systems, complex governance and procurement processes, cultural resistance and gaps in skills and confidence. The result? Innovation exists, but struggles to take hold.

Culture, Not Technology, Is the Barrier

A recurring theme was that culture is the single biggest barrier to transformation. Public sector organisations want to innovate, but often feel constrained by fear of getting things wrong, and are often hampered by a lack of permission to take risks. At the same time, there’s a clear desire for change. Leaders called for a shift towards “moderated risk-taking” (supported by strong governance!) and more collaborative, joined-up ways of working. In short, transformation requires not just new tools, but new behaviours.

AI as an Accelerator – Not a Silver Bullet

Another important takeaway: AI is not a cost-cutting tool – it’s an accelerator. The most effective use of AI is not to fix broken systems, but to scale and enhance services that already work well. That means getting the fundamentals right first:

• Clear service design
• Strong data foundations
• Citizen-centred thinking
• Governance that enables scale

There’s also a growing recognition that trust is critical. Responsible AI requires ongoing risk assessment, clear governance frameworks, and critically, human oversight and accountability.

The Shift to Citizen-Centric Services

Despite years of ambition, many public services are still designed around organisational silos rather than citizen needs. The goal is clear: services that feel personal, seamless, and human-centred. But achieving this requires a fundamental shift in how services are designed and delivered – breaking down silos and joining up data, systems, and teams.

Where Kerv can help

This isn’t just about deploying new technology – it’s about helping organisations bridge the gap between ambition and execution. Here’s where we’re already supporting public sector organisations:

• Connecting Fragmented Systems
  We help break down silos by integrating platforms, data, and workflows – enabling truly joined-up services across departments and organisations.
• Scaling Beyond the Pilot Phase
  We focus on moving from proof of concept to production, using proven architectures and delivery approaches that turn ideas into operational services.
• Building Strong Foundations
  From data strategy to service design, we ensure the basics are in place so that AI and digital tools can deliver real impact.
• Embedding Responsible AI
  We support organisations with governance, assurance, and our AI Enablement Framework that enables innovation while maintaining trust.
• Enabling People and Change
  Technology alone isn’t enough. We help build the skills, confidence, and cultural shift needed to embed new ways of working.

Closing the Gap

Perhaps the most striking insight from the event was the sense of a “chasm” between where public services are today and where they need to be.  Closing that gap will require collective effort – across central and local government in partnership with the technology community. The ambition is there. The ideas are there. Now the focus must shift to joining things up, scaling what works, and delivering real outcomes for citizens.

Contact us at hello@kerv.com