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Opinion

How Government Could Actually Buy Good AI

A Practical Framework for Fixing Public Sector AI Procurement

Sammy Harris|Co-Founder, Stealth Labs20 January 202610 min read

The UK government procurement system locks out the best AI companies and rewards the slowest movers. Here's how other countries do it better - and what reform could actually look like.

The Waiting Game

If you're an AI company wanting to sell to UK government, the first thing you learn is patience. The procurement cycle doesn't move at the speed of technology - it moves at the speed of frameworks, compliance checks, and approval committees.

Miss a G-Cloud window and you could be locked out for over a year. In that time, the technology landscape shifts completely. The AI model that was cutting-edge when you applied is old news by the time you can actually sell it.

Interactive Demonstrator

The Procurement Timeline

Drop a pin on the calendar. See how long you'd wait to sell AI to government in different countries.

G-Cloud framework windows every 12 months with 4-6 month lead time.

Often 12+ months locked out

Month 0Month 12Month 24
Open
Open
Lead
Lead
Click to place your pin
Open window
Lead time required

Incentives Drive Behaviour

The procurement system isn't broken by accident. Every behaviour you see - the risk aversion, the preference for large incumbents, the multi-year lock-ins - is a rational response to the incentives in place.

When "lowest price wins" is the primary criterion, you get a race to the bottom on quality. When process compliance is valued over outcomes, you get box-ticking. Change the incentives and the behaviours follow.

Interactive Demonstrator

The Incentive Mapper

See how procurement rules create behaviours. Then toggle to see what reform could change.

Current SystemReformed System

Incentives

Lowest price wins
Multi-year frameworks
Process compliance
Risk aversion culture

Behaviours

Race to bottom on quality
Lock-in, no switching
Box-ticking over outcomes
Safe choices, not good choices

Current incentives reward compliance over capability. Vendors optimise for process, not results.

The Experimentation Gap

Most government IT budgets have zero allocation for experimentation. Every pound must be justified upfront with a business case, ROI projection, and risk assessment. That works for replacing a server. It doesn't work for exploring whether AI can transform a service.

Even when budgets exist, procurement overhead eats 40-60% before a single line of code is written. Compliance reviews, security assessments, vendor evaluations, contractual negotiations - all necessary, but all consuming resources that should be going to actual delivery.

Interactive Demonstrator

The Experiment Calculator

How much of your budget actually reaches working AI? Move the sliders to find out.

Β£50M
5%
Experimental Budget
Β£3M
Current RulesReformed Rules
Overhead (60%)Delivery (40%)
Compliance
Compliance: 15%
Procurement process
Procurement process: 20%
Vendor assessment
Vendor assessment: 10%
Integration overhead
Integration overhead: 15%
Actual Delivery
Compliance (15%)
Procurement process (20%)
Vendor assessment (10%)
Integration overhead (15%)
5
Β£200k experiments funded
Β£1M
Reaches actual delivery
Β£2M
Lost to overhead

Side-by-Side Comparison

Current
Reformed
Overhead
60%
15%
Delivery budget
Β£1M
Β£2M
Experiments
5
10
Waste recovered
Β£1M saved with reform

What Other Countries Do

The UK isn't the only country trying to buy AI. But it's one of the slowest. Singapore's GovTech runs rolling procurement with 4-week review cycles. Estonia built an open API marketplace where approved vendors can plug in and go. Even the US, not known for agile government, has more flexible pathways.

The comparison is stark. In Singapore, a good AI company can be selling to government within weeks. In the UK, the same company might wait over a year before they can even bid. That's not protecting taxpayers - it's protecting incumbents.

Interactive Demonstrator

The Global Comparison

Four countries, five dimensions. Flip the cards to see who's getting AI procurement right.

Flip at least 2 cards to see a side-by-side comparison

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