Labour signs up to five years of Microsoft AI

The UK government, through Crown Commercial Services (CCS), has signed a five-year agreement with Microsoft for access to its portfolio of artificial intelligence (AI)-powered products and services.

Microsoft said the agreement, which will be effective from 1 November, will enable eligible public sector organisations, via their chosen procurement route, to achieve cost savings on Microsoft 365, the Azure Cloud platform, business applications and Microsoft 365 Copilot.

Roger Gonourie, chief commercial officer at CCS, said: “This agreement will support eligible public sector organisations to pursue their digital transformation and innovation ambitions by enabling them to benefit from leveraging the size and scale of the UK public sector. It shows CCS’s continued commitment to providing maximum commercial value for our customers, removing barriers to growth across the public sector. It’s about securing a better future for us all.”

Microsoft said the partnership provides a platform to support the UK government in its mission to deliver the economic growth needed to help fund public services, ease the cost-of-living crisis and create employment opportunities for all.

Speaking at the start of Microsoft’s AI Tour in London, CEO Satya Nadella discussed the benefits of AI for the UK government, saying: “The government will be transformed using this technology. It starts by putting it in the hands of civil servants.”

According to Nadella, deploying AI technology across the civil service will gradually improve productivity, which will then have a positive impact on government services and the citizens supported by these services.

The UK government aims to create a workforce equipped with the digital skills necessary to flourish in the age of AI. Microsoft said it has been developing new certifications and skilling programmes for public sector employees, as well as further investment in its Enterprise Skills Initiative. In addition, Microsoft intends to make available events, workshops, self-paced learning and certifications for users across government, driving the adoption of new digital skills and capabilities.

Nadella said the human capital being developed in the UK, combined with the infrastructure being built, will help to catapult what it can do in the AI era. He sees AI in the workforce as being as significant as the impact lean manufacturing has had across manufacturing.

He said AI enables organisations to create new workflows. For instance, AI can be used to help formulate an idea or an artefact that can then be shared among work colleagues to amplify the effectiveness of AI technology. This is how Microsoft sees its Copilot technology being applied. “Copilot is not just about a chat interface. Chat is just one modality of being able to retrieve information,” said Nadella, adding that this leads to more sophisticated workflows and collaboration.

Clare Barclay, CEO of Microsoft UK, added: “Microsoft can continue to support the UK government to create a world-class, digital-first public sector infrastructure that will improve service delivery for citizens across the whole of the UK and create opportunities for all.”