The British government's claim of £45 billion in AI savings was disputed in parliament on October 15, 2025, with witnesses stating that the numbers seem unrealistic without actual cuts.
Nick Davies, programme director at the Institute for Government, said the figure was a "huge amount, given that most of what government is spending on is either salaries or is on different kinds of infrastructure."
In January, a Labour report suggested that the NHS, councils, and central government could save £45 billion by improving outdated technology and processes. By June, the Department for Science, Innovation and Technology cited a study claiming AI could save nearly two working weeks per person each year.
Nick Davies emphasized that achieving such savings would require significant cuts, not just optimism.
Author's summary: UK's AI savings claim faces scrutiny in parliament.