Almost a third of IT professionals in the UK public sector are highly concerned about security risks associated with AI adoption, new research suggests. According to a new report published by SolarWinds, while AI is increasingly integrated into government IT operations, concerns over data privacy (48%), regulatory compliance (46%), and algorithmic transparency (37%) remain key barriers to broader implementation.
The ‘Next-Gen Government IT: AI and Observability Insights Report’ was based on a December 2024 survey conducted with Market Connections, and gathered insights from 100 UK public sector IT decision-makers and influencers. It examined security threats, AI adoption, digital transformation progress, and IT observability trends, revealing a complicated security landscape as government agencies transition toward modern IT infrastructure.
“It’s clear that UK public sector organisations are shifting operations and workloads to the cloud and embracing hybrid IT environments now more than ever,” said SolarWinds UK public sector and defence head Richard Giblin. “But this evolution, along with increased AI adoption, brings added complexity in maintaining data security and regulatory compliance, all while navigating increasingly tight budgets.”
Security risks and IT management challenges grow amid digital transition
The SolarWinds survey found that cybersecurity remains a pressing issue for UK public sector IT managers, with budget constraints (23%) cited as the most significant barrier to improving IT security. Additionally, 58% of respondents described their IT environments as highly complex, making security management increasingly difficult. The most prevalent security threat came from careless or untrained insiders (56%), followed by the general hacking community (55%) and foreign governments (53%). The report also found that as organisations transition to hybrid IT environments, security challenges are escalating, with 46% of respondents reporting significant monitoring and visibility gaps, increasing the risk of misconfigurations and compliance failures.
Despite ongoing digital transformation efforts, only 6% of UK public sector organisations have fully completed their transition, while 42% reported that efforts are well underway and 40% stated they had made limited progress. Workforce skill shortages, cited by 58% of respondents, were identified as a major roadblock, particularly in the defence and security sector, where 73% expressed concerns over a lack of AI and IT expertise. Data privacy and security issues (51%) and budget constraints (49%) were also highlighted as significant obstacles.
The report found that observability is increasingly valued as organisations work to strengthen their cybersecurity measures, with 51% of respondents stating that it is crucial to digital transformation. Enhanced security monitoring (73%), faster incident response (53%), and improved data-driven decision-making (49%) were identified as the key benefits of observability tools. However, despite these advantages, many organisations remain hesitant about full-scale adoption due to privacy concerns (67%), integration challenges (38%), and cost constraints (21%).
AI adoption in IT operations is also growing, with 23% of UK public sector organisations already leveraging AI for automation and observability. Another 40% of respondents stated they were actively planning AI adoption, while many others were considering it. AI’s most widely recognised advantages included faster issue detection (60%), automation of threat responses (49%), and predictive analytics (49%), all of which contribute to more efficient cybersecurity management. However, concerns over AI risks continue to slow adoption, with data privacy (48%), regulatory compliance (46%), and lack of transparency in AI decision-making (37%) being cited as the most significant challenges.
Looking ahead, digital transformation remains the top priority, with 52% of IT leaders listing it as their organisation’s primary focus over the next 12 months. However, AI integration ranked lower, with just 30% identifying it as a major priority, suggesting a more cautious approach to AI adoption. The findings indicate that public sector organisations are strategically investing in AI and IT modernisation while ensuring that security, compliance, and workforce development remain at the forefront of these efforts.
