UK public sector spend on AI, 2022-2026

Every AI contract UK public bodies have published since the release of ChatGPT.

AI-related procurements
2,008
public bodies buying
615
awarded across 1,470 contracts, framework ceilings left out
£1.83bn
procurements searched to find them
581,864

Figure 0. Policy milestones since the release of ChatGPT, against AI-related procurements published each month

Figure 0. AI-related procurements published each month, against policy milestones. DSIT: Department for Science, Innovation and Technology. FDP: NHS Federated Data Platform.
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By Seamus White, founder of BidSkim. Notices from January 2022 to August 2026. Licence CC BY 4.0.

Eight findings on AI in UK public procurement

The full report has the sector tables, the value rules and the classification method.

UK firms win 67% of the contracts; overseas firms hold 65% of the money

UK suppliers won 978 of the 1,470 awards with a published value and hold £639.6m. Suppliers headquartered or owned overseas won 485 and hold £1.19bn. Most of that is a few large contracts: Palantir’s agreements with the Ministry of Defence and NHS England, and HPE’s hardware for Isambard-AI in Bristol.

Figure 14. Who wins the work, who gets the money: share of contracts and share of value by supplier group

Figure 14. Who wins the work, who gets the money: share of contracts and share of value by supplier group

Data table
Figure 14. Who wins the work, who gets the money: share of contracts and share of value by supplier group
Supplier groupValued awardsShare of awardsPublished valueShare of value
UK suppliers97867%£639.6m35%
Overseas suppliers48533%£1.19bn65%
SMEs77753%£300.5m16%
Large companies69347%£1.53bn84%
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SMEs win 53% of AI contracts and hold 16% of the money

SMEs won 777 awards worth £300.5m. Their share of contracts has risen every year, from 42% in 2022 to 59% so far in 2026. They win 58% of contracts under £100k and 21% of those over £10m.

Figure 11. Supplier size: share of awards and published value

Figure 11. Supplier size: share of awards and published value

Data table
Figure 11. Supplier size: share of awards and published value
Supplier sizeValued awardsShare of awardsPublished valueShare of value
Large company69347%£1.53bn84%
SME77753%£300.5m16%
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90% of the money going to US companies comes from defence, health and universities

Those three sectors hold £1.16bn of the £1.83bn. The largest flows are Palantir’s two agreements with the Ministry of Defence, the NHS Federated Data Platform and HPE’s hardware for Isambard-AI. Councils and central government buy mostly from UK companies.

Figure 24. Where the money flows: buyer sectors to supplier country

Figure 24. Where the money flows: buyer sectors to supplier country

UK companies owned from abroad are counted under their owner’s country, as in Figure 20.

Data table
Figure 24. Where the money flows: buyer sectors to supplier country
Buyer sectorSupplier countryPublished value
Defence and securityUS companies£437.2m
Defence and securityUK companies£71.3m
Defence and securityEuropean companies£84.3m
Defence and securityRest of the world£1.8m
Defence and securityJoint or unnamed£350k
Central governmentUS companies£53.4m
Central governmentUK companies£262.2m
Central governmentEuropean companies£35.4m
Central governmentRest of the world£4.8m
HealthUS companies£229.9m
HealthUK companies£52.8m
HealthEuropean companies£13.7m
HealthRest of the world£6.4m
Education and universitiesUS companies£190.3m
Education and universitiesUK companies£67.6m
Education and universitiesEuropean companies£6.2m
Education and universitiesRest of the world£1.9m
Local governmentUS companies£10.0m
Local governmentUK companies£79.3m
Local governmentEuropean companies£4.1m
Local governmentRest of the world£6.7m
Police and justiceUS companies£26.8m
Police and justiceUK companies£48.2m
Police and justiceEuropean companies£2.2m
Police and justiceRest of the world£2.5m
Police and justiceJoint or unnamed£1.5m
Research bodiesUS companies£317k
Research bodiesUK companies£8.0m
Research bodiesEuropean companies£2.3m
Research bodiesRest of the world£44.9m
HousingUS companies£4.6m
HousingUK companies£17.8m
HousingEuropean companies£6.8m
Other public bodiesUS companies£923k
Other public bodiesUK companies£5.9m
Other public bodiesEuropean companies£4.6m
Other public bodiesRest of the world£779k
RegulatorsUS companies£1.7m
RegulatorsUK companies£7.8m
RegulatorsEuropean companies£873k
RegulatorsRest of the world£150k
Utilities and energyUS companies£325k
Utilities and energyUK companies£7.7m
Utilities and energyEuropean companies£945k
Utilities and energyRest of the world£329k
TransportUS companies£1.3m
TransportUK companies£5.1m
TransportRest of the world£316k
TransportJoint or unnamed£669k
Devolved governmentUS companies£60k
Devolved governmentUK companies£5.9m
Devolved governmentEuropean companies£300k
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Defence buys 88% of its AI from overseas suppliers

Defence and security holds £594.9m, 32% of all published value. £315.8m of that is Palantir’s two enterprise agreements with the Ministry of Defence, from 2022 and 2025.

Figure 22. UK and overseas suppliers’ share of each buyer sector’s published value

Figure 22. UK and overseas suppliers’ share of each buyer sector’s published value

Data table
Figure 22. UK and overseas suppliers’ share of each buyer sector’s published value
Buyer sectorPublished valueOverseas suppliersUK suppliersJoint or unnamed
Defence and security£594.9m88%12%0%
Central government£355.8m26%74%0%
Health£302.8m83%17%0%
Education and universities£266.0m75%25%0%
Local government£100.1m21%79%0%
Police and justice£81.1m39%59%2%
Research bodies£55.5m86%14%0%
Housing£29.1m39%61%0%
Other£12.3m52%48%0%
Regulators£10.5m26%74%0%
Utilities and energy£9.3m17%83%0%
Transport£7.3m22%69%9%
Devolved government£6.2m6%94%0%
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Seven of the 11 top AI suppliers by contracts won are SMEs

The seven are Beam, VivaCity, Voicescape, Cambridge Spark, ICS.AI, Mobysoft and Gaist. Most of the busiest sell one tool to many councils, such as Beam’s transcription for social workers, VivaCity’s traffic sensors and Voicescape’s tenant analytics.

Figure 9. Top UK public sector AI suppliers by contracts won: every company with nine or more, one dot per contract

Figure 9. Top UK public sector AI suppliers by contracts won: every company with nine or more, one dot per contract

Data table
Figure 9. Top UK public sector AI suppliers by contracts won: every company with nine or more, one dot per contract
RankSupplierAwardsPublished valueMain buyer sectorAwards in that sectorSize
1Beam77£10.6mLocal government91%SME
2VivaCity47£4.9mLocal government98%SME
3Voicescape39£7.9mLocal government44%SME
4Faculty24£27.8mCentral government38%Large company
5Cambridge Spark23£6.6mCentral government43%SME
5ICS.AI23£18.9mLocal government83%SME
5Mobysoft23£9.4mLocal government74%SME
8Softcat22£6.4mHealth27%Large company
9Gaist19£14.0mLocal government100%SME
9Palantir19£553.0mHealth42%Large company
9Vaisala19£2.6mLocal government100%Large company
12Frazer-Nash15£7.4mDefence and security53%Large company
12Phoenix Software15£2.5mPolice and justice40%Large company
14Capgemini14£33.8mCentral government71%Large company
15QA12£7.4mCentral government42%Large company
16Dataminr9£677kHealth33%Large company
16Deloitte9£5.6mCentral government22%Large company
16Netcall9£873kHealth44%Large company
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US companies hold 46% of the money, 52% counting the UK firms they own

Most of it is Palantir, £553.0m, and HPE’s hardware for Isambard-AI, £175.9m. The UK firms with US owners include SeeByte (Battelle), PA Consulting (Jacobs) and CACI. Faculty is counted under Ireland, where its owner Accenture is registered.

Figure 20. Where the money went, by supplier country

Figure 20. Where the money went, by supplier country

Data table
Figure 20. Where the money went, by supplier country
Supplier countryHeadquartered thereUK companies owned from therePublished valueShare of value
US companies£847.5m£109.2m£956.7m52%
UK companies£639.6m£0£639.6m35%
European companies£131.4m£30.4m£161.7m9%
Rest of the world£32.0m£38.5m£70.5m4%
Joint or unnamed£2.5m£0£2.5m0%
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Palantir holds 30% of the money, more than the next four suppliers combined

Its 17 contracts with a published value total £553.0m, where the typical AI contract is £106k. The two largest are the Ministry of Defence enterprise agreement, £240.6m, and the NHS Federated Data Platform, £182.2m.

Figure 10. Who gets paid the most, and by whom: the 25 suppliers with the largest published value

Figure 10. Who gets paid the most, and by whom: the 25 suppliers with the largest published value

Data table
Figure 10. Who gets paid the most, and by whom: the 25 suppliers with the largest published value
SupplierValued awardsPublished valueMain buyer sectorValue from that sectorSize
Palantir17£553.0mDefence and security59%Large company
Quantexa5£186.0mCentral government100%Large company
HPE1£175.9mEducation and universities100%Large company
SeeByte4£54.8mDefence and security100%Large company
Robertson Construction1£53.6mEducation and universities100%Large company
Capgemini12£33.8mDefence and security61%Large company
TKMS Atlas3£32.2mDefence and security100%Large company
iProov5£29.2mCentral government60%SME
Russell WBHO1£28.7mResearch bodies100%Large company
Faculty24£27.8mCentral government37%Large company
MSubs4£23.4mDefence and security71%SME
PA Consulting7£21.9mDefence and security97%Large company
IBM6£21.1mCentral government99%Large company
Hadean1£20.0mDefence and security100%SME
Trustmarque3£19.7mPolice and justice100%Large company
ICS.AI20£18.9mLocal government92%SME
Capgemini-led consortium1£17.5mDefence and security100%Large company
Lenovo1£15.8mResearch bodies100%Large company
Adarga6£14.9mDefence and security98%SME
Gaist16£14.0mLocal government100%SME
CACI1£13.0mPolice and justice100%Large company
Dell4£12.4mEducation and universities100%Large company
Accurx4£12.3mHealth100%SME
NPL3£10.7mCentral government98%Large company
Beam76£10.6mLocal government96%SME
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Councils buy the most AI; defence holds the most money

The Ministry of Defence alone has 114 AI procurements worth £541.0m. Councils publish 475 between them, but the typical council contract is £89k, against £250k in defence.

Figure 6. Buyer sectors by number of procurements and by published value

Figure 6. Buyer sectors by number of procurements and by published value

Data table
Figure 6. Buyer sectors by number of procurements and by published value
Buyer sectorAI-related procurementsPublished value
Local government475£100.1m
Central government322£355.8m
Health316£302.8m
Defence and security200£594.9m
Education and universities142£266.0m
Police and justice135£81.1m
Research bodies105£55.5m
Other96£12.3m
Regulators63£10.5m
Transport41£7.3m
Housing40£29.1m
Utilities and energy39£9.3m
Devolved government34£6.2m
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More from the report

Figure 21. Palantir’s contracts against every other AI contract with a published value

Figure 21. Palantir’s contracts against every other AI contract with a published value

Data table
Figure 21. Palantir’s contracts against every other AI contract with a published value
Award dateBuyerPublished value
2022-02-01Ministry of Defence£833k
2022-03-03Ministry of Defence£10.0m
2022-05-31Ministry of Defence£250k
2022-06-20NHS North of England Commissioning Support£125k
2022-08-25NHS England£11.5m
2022-09-22Ministry of Housing, Communities and Local Government£4.5m
2022-11-25Ministry of Defence£75.2m
2022-12-12NHS Shared Business Services£138k
2023-01-03NHS North of England Commissioning Support£825k
2023-03-27London Ambulance Service NHS Trust£84k
2023-06-09NHS England£24.9m
2023-11-22NHS England£182.2m
2024-09-20Northumbria Healthcare NHS Foundation Trust£412k
2025-01-30Coventry City Council£500k
2025-12-30Ministry of Defence£240.6m
2026-01-30Metropolitan Police Service£490k
2026-01-30Financial Conduct Authority£375k
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Figure 23. The ten public bodies with the most published AI contract value

Figure 23. The ten public bodies with the most published AI contract value

Data table
Figure 23. The ten public bodies with the most published AI contract value
BuyerAI-related procurementsPublished value
Ministry of Defence114£541.0m
NHS England18£230.8m
University of Bristol7£187.5m
HM Revenue & Customs17£179.1m
DSIT96£55.1m
University of Edinburgh10£54.8m
UKRI21£52.3m
Home Office49£44.3m
Work and Pensions28£30.3m
Dstl62£22.5m
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Figure 19. What a keyword search misses: share of each category with no AI term in the notice

Figure 19. What a keyword search misses: share of each category with no AI term in the notice

737 of the 2,008 AI-related procurements (37%) never use an AI term, so a keyword search of the portals would not find them.

Data table
Figure 19. What a keyword search misses: share of each category with no AI term in the notice
CategoryProcurementsWith no AI termShare missed by a keyword search
Sensing & physical-world vision39630076%
Data science, models & platforms23912653%
Governance, security & legal884349%
Casework, documents & automation29110636%
Research, safety & innovation funding2616224%
Clinical & health AI2134722%
Citizen & customer contact1232016%
Productivity licences & readiness941314%
AI computing infrastructure and enabling works42512%
Advisory & delivery partners8967%
Skills & people14853%
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Figure 12. SME share of awards with a published value, by award year

Figure 12. SME share of awards with a published value, by award year

Data table
Figure 12. SME share of awards with a published value, by award year
Award yearSME awardsAwards with a published valueSME share
20228219542%
202311624248%
202416530554%
202523642456%
2026 (January to August)17730259%
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Figure 4. The generative wave: share of procurements that state a generative or language-model technique

Figure 4. The generative wave: share of procurements that state a generative or language-model technique

2026 covers January to August.

Data table
Figure 4. The generative wave: share of procurements that state a generative or language-model technique
YearProcurements stating a techniqueGenerative or language-modelGenerative share
202212843%
20231391410%
20242055426%
20252596826%
2026 (January to August)2256931%
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Figure 15. The largest AI contracts, coloured by buyer

Figure 15. The largest AI contracts, coloured by buyer

The eight largest contracts are 54% of all published AI contract value.

Data table
Figure 15. The largest AI contracts, coloured by buyer
BuyerSupplierPublished valueShare of all AI contract valueNotice
Ministry of DefencePALANTIR TECHNOLOGIES UK, LTD.£240.6m13.1%Notice
NHS EnglandPALANTIR TECHNOLOGIES UK, LTD.£182.2m10.0%Notice
University of BristolHewlett-Packard Limited (trading as Hewlett-Packard Enterprise)£175.9m9.6%Notice
HM Revenue & CustomsQuantexa Ltd£175.0m9.6%Notice
Ministry of DefencePALANTIR TECHNOLOGIES UK, LTD.£75.2m4.1%Notice
University of EdinburghRobertson Construction£53.6m2.9%Notice
Ministry of DefenceSeeByte Ltd£50.0m2.7%Notice
Ministry of DefenceAtlas Elektronik UK Ltd£31.8m1.7%Notice
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Figure 8. AI facilities and shared compute: published value by project

Figure 8. AI facilities and shared compute: published value by project

Data table
Figure 8. AI facilities and shared compute: published value by project
Project or programmeValued procurementsPublished value
Bristol: Isambard-AI and data facility3£187.5m
Edinburgh: national supercomputer2£54.1m
Daresbury: Hartree Centre3£45.3m
Other facilities and shared compute4£2.2m
AIRR programme-wide2£361k
Culham AI data-centre programme2£110k
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Figure 1. AI-related procurements by year and category

Figure 1. AI-related procurements by year and category

Data table
Figure 1. AI-related procurements by year and category
Category20222023202420252026 (January to August)
Sensing & physical-world vision7184838771
Casework, documents & automation20265010887
Research, safety & innovation funding5737835727
Data science, models & platforms3950496239
Clinical & health AI2535445257
Skills & people911255152
Other categories506065138147
All AI-related procurements271303399555480
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Figure 3. AI-related procurements by category, coloured by kind of work

Figure 3. AI-related procurements by category, coloured by kind of work

Data table
Figure 3. AI-related procurements by category, coloured by kind of work
CategoryKind of workProcurements
Sensing & physical-world visionOperational tools396
Casework, documents & automationOperational tools291
Research, safety & innovation fundingResearch and funding261
Data science, models & platformsOperational tools239
Clinical & health AIOperational tools213
Skills & peopleSkills and people148
Citizen & customer contactOperational tools123
Productivity licences & readinessOperational tools94
Advisory & delivery partnersAdvice and delivery89
Governance, security & legalOperational tools88
AI computing infrastructure and enabling worksInfrastructure42
Commercial vehiclesFrameworks24
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Figure 16. The largest contract’s share of each sector’s published value

Figure 16. The largest contract’s share of each sector’s published value

Data table
Figure 16. The largest contract’s share of each sector’s published value
Buyer sectorSector published valueLargest contract: buyerSupplierValueShare of sector value
Defence and security£594.9mMinistry of DefencePalantir£240.6m40%
Central government£355.8mHM Revenue & CustomsQuantexa£175.0m49%
Health£302.8mNHS EnglandPalantir£182.2m60%
Education and universities£266.0mUniversity of BristolHPE£175.9m66%
Local government£100.1mBlackpool CouncilGaist Limited£12.0m12%
Police and justice£81.1mCrown Prosecution ServiceTrustmarque Solutions Ltd£19.6m24%
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Figure 17. How big is a typical AI contract: published value by buyer sector

Figure 17. How big is a typical AI contract: published value by buyer sector

Data table
Figure 17. How big is a typical AI contract: published value by buyer sector
Buyer sectorValued awardsLower quartileMedianUpper quartile
Defence and security137£97k£250k£750k
Housing35£81k£217k£445k
Police and justice97£51k£140k£398k
Central government259£50k£136k£402k
Utilities and energy22£61k£129k£209k
Transport25£50k£120k£300k
Other48£58k£112k£315k
Health229£50k£110k£284k
Research bodies63£30k£100k£230k
Education and universities96£51k£98k£215k
Local government384£48k£89k£185k
Regulators57£37k£73k£106k
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UK government AI contracts: questions and answers

How much has the UK public sector spent on AI contracts?

UK public bodies published £1.83bn of AI-related contract awards between January 2022 and August 2026, across 1,470 awards with a published value. It is the value of contracts awarded, not money paid. Over the same period 615 public bodies published 2,008 AI-related procurements.

Does the total include framework agreements?

No. Only the contracts awarded under a framework are counted. A framework ceiling is a spending limit shared by many buyers over several years, so it is not a purchase.

How many AI contracts do UK public bodies publish each year?

271 in 2022, 303 in 2023, 399 in 2024 and 555 in 2025. The first eight months of 2026 had 480, a pace of about 720 a year.

Which companies win the most UK government AI contracts?

By number of awards, Beam (77), VivaCity (47) and Voicescape (39). Seven of the 18 most frequent winners are SMEs. By published value, Palantir (£553.0m), Quantexa (£186.0m) and HPE (£175.9m).

How much UK public sector AI money goes to Palantir?

Palantir holds £553.0m across 17 awards with a published value, 30% of all published AI contract value and more than any other supplier. Its two largest agreements are with the Ministry of Defence (£240.6m) and NHS England for the Federated Data Platform (£182.2m).

How much UK public AI spending goes to overseas companies?

Suppliers headquartered overseas or under foreign control hold 65% of published AI contract value, £1.19bn, from 33% of valued awards. UK suppliers won 67% of the awards and hold 35% of the value. US companies alone hold 46%, £847.5m, and 52% counting the UK companies they own.

How much UK public sector AI money goes to US companies?

US-headquartered suppliers hold £847.5m, 46% of the £1.83bn of published AI contract value since January 2022. Counting UK companies with US owners, such as SeeByte and PA Consulting, it is £956.7m, 52%. Most of it is Palantir (£553.0m) and HPE’s hardware for Isambard-AI (£175.9m).

Which public bodies buy the most AI?

The Ministry of Defence is the largest buyer by number and by value, with 114 AI-related procurements and £541.0m in published value. Next by number are the Department for Science, Innovation & Technology (96) and the Defence Science and Technology Laboratory (62). Next by value are NHS England (£230.8m), the University of Bristol (£187.5m) and HM Revenue & Customs (£179.1m). As a sector, local government publishes the most AI procurements, 475.

What kind of AI are UK public bodies buying?

Mostly tools in use. Research and evaluation fell from 23% of AI-related procurements in 2022 to 6% in 2026. The largest categories are sensing & physical-world vision (396), casework, documents & automation (291) and research, safety & innovation funding (261). In 2026, 31% of procurements that state a technique name a generative or language-model one, up from 3% in 2022.

Do SMEs win UK public sector AI contracts?

SMEs win most of the contracts but little of the money. They won 53% of valued awards (777) and hold 16% of published value (£300.5m). Half of all AI contracts are under £106k.

How were the AI contracts identified?

From every notice on Find a Tender, Contracts Finder, Public Contracts Scotland and Sell2Wales. 16,870 candidate procurements were read in full and classified against a written definition of AI-related work. 737 of the 2,008 included procurements (37%) never use an AI term, so a keyword search of the portals would miss them.

How should this report be cited?

White, S. (2026) Artificial intelligence in UK public procurement, 2022 to 2026. BidSkim Research, Procurement Data Series No. 1. Version 2026-10-07. Available at: https://bidskim.com/research/ai-in-uk-public-procurement-2022-2026. The report, figures and dataset are published under a Creative Commons Attribution 4.0 licence.

How the AI contracts were identified

A procurement counts as AI-related when the thing bought is or depends on a machine-learning, language-model, speech, vision or autonomy capability; when AI is the subject of the work; or when the purchase provides computing for AI. Anything a looser definition would sweep in is kept in the dataset as adjacent and excluded from every figure.

  1. The record. 581,864 procurements: every notice on Find a Tender, Contracts Finder, Public Contracts Scotland and Sell2Wales from September 2021 to August 2026, collected daily and grouped so one purchase is counted once.
  2. Retrieval. Plain-language descriptions of 44 kinds of AI work were matched against every notice, alongside AI terms, product names and a list of suppliers whose only product is AI. 16,870 candidates were read in full. 737 of the 2,008 included procurements never use an AI term.
  3. Classification. Each candidate was read by Claude Opus 5 under the fixed definition and rule set, at least three times, and the author ruled on boundary cases. Every kept row carries a quoted evidence string and a source link.
  4. Value. The total counts contracts that were actually awarded, with the value taken from the award notice, including contracts placed under frameworks. Framework ceilings are left out: a ceiling is a spending limit shared by many buyers, not a purchase. Awards with no published value are left out, so the total is a minimum.

Download the data and cite the report

The report, the figures and the chart tables are free to download. The full row-level CSV, with every procurement, its category, value basis, evidence string and source link, is available on request with a work or education email, together with the per-buyer table, supplier assessments and evidence pack. A short script reproduces every published total from the CSV.

White, S. (2026) Artificial intelligence in UK public procurement, 2022 to 2026. BidSkim Research, Procurement Data Series No. 1. Version 2026-10-07. Available at: https://bidskim.com/research/ai-in-uk-public-procurement-2022-2026
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