Grapevine

Governments can learn from Silicon Valley as they tackle AI and data science

A new study from the Oxford Internet Institute (part of the University of Oxford) and the London School of Economics examines how governments have gradually adopted Silicon Valley's way of working.

This shift offers valuable lessons as the new UK Labor government looks to embrace AI and data science in public services. However, the study also highlights ongoing challenges, such as outdated IT systems, reliance on conservative tech providers, and the dominance of big tech companies.

The study, titled "The Political Economy of Digital Government: How Silicon Valley Firms Drove the Adoption of Data-Science and Artificial Intelligence in Public Management," was published in the journal Public Money & Management.

It shows how governments in the U.S., U.K., and Australia were slow to modernize public services due to their dependence on traditional large-scale computer firms, known as "systems integrators." Public officials also hesitated to adopt Silicon Valley methods, which held back progress for decades. The study suggests that to better harness AI, the public sector must avoid repeating these past mistakes.

Professor Helen Margetts from the Oxford Internet Institute explains, "Our research looks at how government contracts for information systems have evolved over time. For years, public officials, working with highly traditional global tech firms, mistakenly believed that Silicon Valley's methods didn't apply to the public sector.