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Digital literacy & leadership slow UK public sector upgrades

Fri, 4th Jul 2025

Research conducted by Granicus finds that digital literacy and leadership are major barriers hindering digital transformation in the UK public sector.

The research draws on responses from public sector workers across central and local government as well as the NHS. Among its key findings, the report highlights that while AI and machine learning (39%), big data analytics (30%), and cybersecurity (27%) are viewed as top priorities for improving digital services, significant obstacles remain in the form of digital literacy (25%) and leadership and vision (27%).

Essential skills and training

Public sector respondents identified digital literacy as one of the most crucial skills needed for better digital service adoption. According to the study, 25% of respondents cited digital literacy as an essential area to address. The need for workforce upskilling was further reflected in the 30% who identified training and development as important for the coming three years.

Ian Roberts, UK Managing Director of Granicus, commented on the state of digital services:

"Our new research has shined a light on the current state of digital services across the public sector, highlighting both challenges and opportunities for growth. From conversations with our customers, we know there's been a real shift to digitising services and improving frontline engagement with citizens and their communities over the past 12 months."

The report found evidence that, although the public sector is investing in digital tools, these are not being used as effectively as possible. Over half of respondents (58%) stated they have the correct digital tools in place, but believe they could be utilised to greater effect to achieve better outcomes.

Leadership challenges

Issues of leadership and vision for AI and technology emerged as notable barriers to progress. Both middle management (36%) and executive leadership (34%) were cited as slowing adoption of new technologies. Additionally, 43% of respondents admitted that there is a lack of clear vision for digital transformation in their organisations.

Roberts continued:

"The rise of artificial intelligence and machine learning has clearly brought many advantages to the public sector in increasing workflows and operational efficiency. But as the research reveals, digital tools are in place across the public sector, but they aren't being used to maximum effect to benefit UK citizens. This will be key for local government especially, in not only maximising return on investment but also improving digital services and outcomes for the public."

Communication and collaboration were also among the commonly identified obstacles to effective digital transformation. Fifty-six per cent of public sector workers said that poor communication and collaboration between departments had impeded progress on digital initiatives. As a result, less than half (46%) expressed satisfaction with their organisation's current digital services.

Strategic recommendations

Based on the research findings, Granicus outlines several priorities for future public sector digital transformation. These include improving the strategic vision for digital transformation, ensuring interoperability of systems, making better use of current technologies, enhancing communication and collaboration, and increasing workforce digital literacy through targeted training and development.

Roberts stated:

"At Granicus, we know that digital transformation is not just about technology, it's about the people. The research reveals that digital literacy is a key barrier to change, which means training and development and upskilling the workforce are key solutions to addressing this need for the public sector in the months ahead."

The data in the report was collected by Censuswide, involving a sample of 634 public sector employees, including 134 directly surveyed by Granicus. Respondents came from a wide range of roles across central and local government and the NHS. The findings arrive as the Government prepares to release its new Digital & AI Roadmap later in the summer, a development which is expected to address some of the challenges identified in the report.

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