In its January 2025 State of digital government review, DSIT reported that government procurement processes had not adapted to the changing nature of the technology market, which has seen a shift from upfront capital purchases to subscription–based models, and greater consolidation of the supply chain.51 Written evidence we received from technology suppliers, third–sector bodies and academics raised concerns that the dominance of a small number of large technology suppliers in the AI market r...

In its January 2025 State of digital government review, DSIT reported that government procurement processes had not adapted to the changing nature of the technology market, which has seen a shift from upfront capital purchases to subscription–based models, and greater consolidation of the supply chain.51 Written evidence we received from technology suppliers, third–sector bodies and academics raised concerns that the dominance of a small number of large technology suppliers in the AI market risks stifling competition and innovation.52 Concerns were also raised that government procurement approaches were ill–suited to a dynamic, fast–paced mar Type: conclusion | Number: 21 | Response status: not_addressed Government response: 5. PAC conclusion: DSIT and Cabinet Office have a long way to go to strengthen the government’s approach to digital procurement to ensure value for money and a thriving AI supplier market. 5. PAC recommendation: DSIT, in collaboration with Cabinet Office, should