Government trends 2026: Closing the digital gap

Constant change and the prospect of Local Government Reorganisation are putting pressure on government organisations to modernise. But how well are they adapting to the demands of digital transformation? Our latest Government Trends Report paints a picture of progress – tempered by persistent challenges.

Automation: ambition meets reality

Automation is no longer optional; it’s essential for efficiency and resilience. Encouragingly, 72% of government bodies report that automation and process improvements are underway. Yet only 18% have automated most processes, and 10% still rely heavily on manual or disconnected workflows. These gaps matter. Legacy systems and fragmented tools continue to slow operations, making it harder to respond to evolving citizen needs.

The message is clear: while the sector is moving forward, integration remains a sticking point. Without fully connected systems, the benefits of automation – speed, accuracy, and cost savings – are diluted.

AI: practical goals, persistent barriers

Artificial intelligence is shifting from hype to reality. Leaders see AI as a tool to improve workforce productivity, automate routine tasks, and support data-driven decision-making. But adoption is uneven. Budget constraints top the list of barriers, followed closely by compliance concerns and a lack of systems knowledge. Security worries also loom large, with over half of respondents unwilling to trust AI solutions that store data outside the UK.

Planned uses of AI focus on practical outcomes. Organisations aim to help staff work smarter, automate routine tasks, and improve decision-making. This pragmatic approach reflects a sector ready to embrace innovation – as long as trust and compliance concerns are resolved.

Cybersecurity: confidence under pressure

Digital transformation brings opportunity, but also risk. Cybersecurity remains a top priority, yet confidence levels vary widely. While some organisations feel well protected, most admit they need more investment to keep pace with evolving threats. Budget and resource constraints are the biggest challenge, followed by limited staff training and a lack of regular audits.

The stakes are high. Cyber-attacks are seen as the greatest risk, far outweighing concerns about AI misuse. Without robust protection, progress in automation and AI could be undermined.

Local government reorganisation: a readiness check

With structural changes on the horizon, technology readiness is critical. Yet confidence is mixed. Only 12% of respondents feel very confident their current systems can support Local Government Reorganisation (LGR), while nearly a third are unsure. This uncertainty underscores the need for future-ready platforms that can adapt to new demands.

The bottom line

Government is moving in the right direction, but the journey is far from complete. Closing gaps in automation, building trust in AI, and strengthening cybersecurity will define success in the years ahead. Organisations that act now will be better placed to deliver efficient, citizen-focused services.  

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Discover what’s shaping the future of public services – and how to turn challenges into opportunities. Secure your access to the full Government Trends Report 2026 today.