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Michigan Post > Blog > Tech / Science > Revealed: How a lot the federal government’s spending on AI
Tech / Science

Revealed: How a lot the federal government’s spending on AI

By Editorial Board Published November 4, 2025 4 Min Read
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Revealed: How a lot the federal government’s spending on AI

Sir Keir Starmer says AI will enhance public companies, put cash in your pocket, create jobs and enhance your kids’s future.

Politicians are betting the home on it – however how a lot are they really spending? And on what?

Revealed: How a lot the federal government’s spending on AI

Picture:
AI is form of an enormous deal for the prime minister. Pic: PA

Over £3.35bn is the general spend by authorities departments on AI contracts, infrastructure and companies, because the know-how actually since on the scene in about 2018. The variety of contracts has been going up annually.

The most important by far is a 2021 contract by the Met Workplace with Microsoft to construct the world’s strongest climate and local weather forecasting supercomputer, plus just a few small contracts for departments to make use of its Copilot AI.

It is price greater than £1bn total.

One other huge contract is for Init – the German public transport know-how firm – with Transport for London, price £259m.

skynews ai sam coates contracts 7071160

However this could be shocking: one of many smallest recipients is Alphabet.

The corporate behind Google, and an enormous AI investor, has simply two contracts with the Cupboard Workplace and the Ministry of Justice, price £2.5m.

Fellow US agency Palantir has a lot of smaller worth contracts – 25 in complete, price £376m.

Requested whether or not individuals had been proper to be involved about huge AI corporations coming in and utilizing their information, he replied: “Those are very legitimate concerns, and they’re right to interrogate this, but Palantir is actually the answer to those problems. We are the way you keep data secure, and we are the way you make AI transparent and auditable”.

skynews ai contracts sam coates 7071162

‘Ministers must be courageous’

Nevertheless, Mr Mosley mentioned the federal government might go additional.

“What they’re saying publicly is what they’re saying privately, but the challenge is always a fear of change,” he mentioned.

“And in this case, you’ve got to embrace change. And ministers need to be brave. They need to take on the system and tell them this is the way things need to work today.

“There’s a whole lot of concern that tomorrow I will must do a distinct factor to what I used to be doing yesterday.”

Who’s spending probably the most?

However the greatest, most data-intensive departments characteristic low down the desk.

skynews sam coates ai screengrab 7071159

The Treasury, which encompasses the taxman, and the Division for Work and Pensions (DWP), which handles advantages, are within the backside three.

The DWP has an annual IT funds of over a billion kilos a 12 months, but has spent lower than £100m cumulatively since 2018 on AI.

Trade insiders blame a short-term authorities mindset, lack of IT experience and backwards know-how – as much as 60% of some bits of presidency are working on legacy, older variations, of IT.

The areas of presidency the place a revolution might save us probably the most cash seem largely as but unexplored. The AI journey has barely begun.

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