The UK Government’s AI contracts have reached £573M

The UK government has so far invested a total of £573M ($770M) in AI-related projects up until July 15, 2025, significantly surpassing the amount invested in AI projects in the whole year of 2024. 
Government spending on artificial intelligence (AI) projects has already surpassed last year’s total, denoting an increased commitment to AI adoption within the UK.
The UK Government’s AI contracts have reached £573M
Figures compiled by the government procurement data provider, Tussell, show that contracts worth £573M have been awarded for AI-related projects so far in 2025, covering the period up to July 15. The amount surpasses the £468M ($628M) total for 2024, showing a sharp acceleration in public sector investment.
The definition of AI contracts is broad, encompassing projects related to generative AI, predictive and data analytics, image recognition, and automation.
The Starmer government has positioned AI as a tool to streamline bureaucracy and eliminate inefficiencies across government departments. In March, ministers said that the deployment of new technology would save the civil service at least £45B ($60B) annually, arguing that innovation would be essential to rebuilding public trust in institutions.
A Cabinet Office spokesperson agreed with this position, saying that “Sluggish, outdated systems have held back public services for too long — costing time, money and public trust. From improving services and cutting waste, AI is helping us build a smarter state.”
AI spending leads to major contracts and corporate winners
This year’s single largest award was a £234M ($314M) contract to the LGC Group, the scientific services company formerly known as the Laboratory of the Government Chemist. The deal covers research into a national measurement system.
Other major beneficiaries of government <a hre