Under investment in data threatens future of AI in Department of Health and Social Care

Decline comes following the use of AI in a warning system to catch potential safety scandals early

As the NHS launches a new AI-powered safety warning system for patient protection, behind the scenes, the Department of Health and Social Care is reducing it’s spend on underlying data infrastructure by £12 million over two years.

The government is pushing hard to increase the use of AI tools across the NHS and government departments, with 70 per cent of government bodies already piloting or planning to use AI. If AI is going to improve productivity and reduce costs as billed, it needs to be fed with high-quality, structured, and secure data.

It is therefore a concern that new figures, obtained via a Freedom of Information request and analysed by the Parliament Street Think Tank, indicate that the Department of Health and Social Care has reduced its annual spending on data staff, technology and management across the department from £37.7 million in 2023/24 to £25 million in 2025/26.

This comes as the NHS prepares to roll out an AI early warning system across hospitals throughout the UK this November to monitor real-time hospital data to flag unusual spikes to trigger urgent inspections.

The NHS is under permanent pressure to find costs savings, and reduced spending on data technology and staffing isn’t necessarily an indication that data quality and culture is being degraded. Nonetheless, with overall budgets falling, concerns are mounting that the department is underinvesting in the data quality, governance and infrastructure needed for trustworthy AI.

Stuart Harvey, CEO of Datactics, commented: “As AI tools become increasingly embedded into front-line services within the government, the need for high-quality and well-governed data has never been more urgent. You can't build trustworthy and accurate AI without clean, complete and well-understood data underneath it.

“AI has incredible potential, but the real work happens long before the algorithm begins. It’s about managing data standards, access and governance, and if those foundations aren’t solid, the AI will fail.”

Some other government departments are increasing their data budgets. The Crown Prosecution Service has invested £52 million into data spending and staff over the past three years, investing in digital infrastructure to support operational effectiveness and security.

Richard Bovey, Chief of Data at AND Digital commented: “As artificial intelligence becomes more embedded within public services, the need for strong data foundations has never been greater and cutting data infrastructure funding at a time of growing reliance on AI sends a mixed message.

“Ultimately, AI success is built on solid data foundations. By investing wisely in the teams, tools, and standards that underpin data, we can create a public sector that’s not only digitally advanced, but also grounded in trust, transparency, and long-term resilience.

Arkadiy Ukolov, Co-Founder and CEO at Ulla Technology Ltd, comments:

“The Department of Health and Social Care’s decision to cut £12 million from data infrastructure spending is deeply concerning, especially as AI is being deployed to monitor real-time hospital data and protect patient safety. Without strong investment in secure systems, the privacy risks multiply.”

“For AI to be truly fit for purpose, particularly in healthcare, it must be built on privacy-first foundations. That means ensuring data remains under user control, processed within secure environments, and governed by clear ethical frameworks. Cutting back on the very infrastructure that underpins those protections threatens to undermine trust and safety at a time when both are needed most.”