The UK government is accelerating digital transformation across public services, driven by a push for greater efficiency, innovation, and AI-powered solutions. The UK’s AI Blueprint, announced earlier this year, has set out the roadmap for the expansion of digital government services, and recent developments such as the unveiling of plans for a new gov.uk wallet to hold citizens’ driving licenses and passports demonstrate a clear commitment to digital transformation.
This transformation is welcome, but it would be amiss not to consider the cybersecurity challenges that come with the integration of AI-driven tools, cloud-based services, and an increasing number of third-party IT providers. The simple fact is that public sector digital transformation expands the attack surface of organizations – potentially exposing sensitive citizen data, essential services, and national security to risks.
A supply chain compromise could lead to the complete outage of essential services like healthcare systems, emergency response networks, or public transport infrastructure. It could result in the exposure of sensitive citizen data, including financial records, medical histories, and even home addresses, placing individuals at risk of fraud, identity theft, or physical harm. In worst-case scenarios, supply chain breaches could be exploited by nation-state actors, escalating into geopolitical crises that undermine national security.
SVP National Cybersecurity at Bitsight.
The risks of public sector digitalization
Recent government projects have highlighted both the potential and pitfalls of AI in the public sector. The UK’s decision to halt AI prototypes in the welfare system due to security and reliability concerns underscores the reality that digital transformation must be accompanied by robust cybersecurity measures.
The increasing reliance on third-party technology suppliers makes government IT ecosystems more interconnected – but also more vulnerable. Poor security hygiene among suppliers can lead to a single weak link exposing entire government networks to cyber threats. The 2023 Capita cyberattack is a stark example of this, where a major IT provider for local councils, the NHS, and the UK military suffered a security breach, exposing sensitive public sector data and disrupting essential services.
This risk is further exacerbated by AI-driven cyberattacks, where threat actors can automate phishing campaigns and deepfake credentials, for example.
Nation-state cyberattacks are targeting the public sector
Recent reports have highlighted how state-sponsored cybercriminals are increasingly targeting supply chains to infiltrate public sector organizations. The UK’s National Cyber Security Centre (NCSC) has repeatedly warned about cyber threats posed by Russian and Chinese threat actors, including sophisticated espionage campaigns and ransomware attacks on healthcare, energy, and local government services.
The recent revelation that Russian hackers have been impersonating IT staff in Microsoft Teams is a stark reminder that cyberattacks are evolving beyond traditional malware to social engineering and AI-powered deception. These attacks don’t just target critical infrastructure but also exploit the weakest links in government supply chains – third-party IT service providers, cloud platforms, and even contractors with lower security standards.
Governments must recognize that supply chain security is now a national security issue. If an attacker can’t access a secure government target directly; infiltrating via less protected third-party partners provides a backdoor through which to gain a foothold.
Where the public sector must act now
Public sector organizations must transition from static, point-in-time security assessments to continuous monitoring of third-party vendors. Real-time risk monitoring can help identify and mitigate vulnerabilities in critical suppliers before they become an entry point for cyber threats.
It is also essential that robust AI governance frameworks are used in the public sector. Without proper oversight, AI-powered security systems risk bias, data integrity issues, and exposure to adversarial attacks, where cybercriminals manipulate AI models to bypass security controls.
Another safeguard is to prioritize cybersecurity awareness training for public sector employees. Without a human-centric approach to cybersecurity education, even the most advanced AI security tools will be ineffective.
Cybersecurity is a public trust issue, not just an IT problem
Cybersecurity is not just an IT issue – it’s a fundamental component of public trust. Amongst other things, citizens rely on government services for healthcare, social benefits, and financial security. When supply chain vulnerabilities allow sensitive data to be compromised or critical services to be disrupted, the reputational damage to public institutions can be severe.
The public sector cannot afford to take a reactive approach. Governments must take bold steps to secure digital transformation initiatives.
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