Labour signs up to five years of Microsoft AI

The UK government, via Crown Commercial Services (CCS), has entered into a five-year agreement with Microsoft to access its array of AI-powered products and services.

Effective from 1 November, Microsoft stated that the agreement will allow eligible public sector organizations to achieve cost savings on Microsoft 365, the Azure Cloud platform, business applications, and Microsoft 365 Copilot through their chosen procurement route.

Roger Gonourie, CCS’s chief commercial officer, expressed that this agreement will assist eligible public sector organizations in pursuing their digital transformation and innovation goals by leveraging the size and scale of the UK public sector. It reflects CCS’s ongoing dedication to delivering maximum commercial value and removing growth barriers across the public sector for a better future.

Microsoft highlighted that this partnership will aid the UK government in its efforts to drive economic growth, support public services, address the cost-of-living challenges, and create job opportunities.

During Microsoft’s AI Tour in London, CEO Satya Nadella emphasized the transformative power of AI for the UK government, stating, “The government will be revolutionized through this technology, starting with empowering civil servants.”

Nadella explained that implementing AI technology in the civil service will enhance productivity over time, leading to improved government services and better support for citizens.

The UK government aims to equip its workforce with digital skills essential for thriving in the AI era. Microsoft is developing new certifications and skilling programs for public sector employees, alongside additional investments in its Enterprise Skills Initiative. The company plans to offer events, workshops, self-paced learning, and certifications to government users, promoting the adoption of new digital skills and capabilities.

Nadella emphasized that the combination of human capital development and infrastructure in the UK will significantly enhance its capabilities in the AI era. He likened the impact of AI in the workforce to the significant influence lean manufacturing has had in manufacturing.

AI enables organizations to create innovative workflows, such as using AI to generate ideas or artifacts shared among colleagues to enhance AI technology’s effectiveness. Microsoft’s Copilot technology exemplifies this approach, going beyond chat interfaces to facilitate more advanced workflows and collaboration.

Clare Barclay, CEO of Microsoft UK, added, “Microsoft remains committed to supporting the UK government in building a world-class, digital-first public sector infrastructure to enhance service delivery for citizens nationwide and create opportunities for all.”