The UK government has launched a landmark initiative in artificial intelligence, setting its sights on the $57 billion public sector technology market with the pilot of a new AI tool called ‘Minute’ AI. Designed by the government’s innovation hub i.AI, Minute is now being tested across 25 local authorities, potentially reshaping how the UK handles public sector digital transformation—and opening doors for AI startups and investors in the fast-growing GovTech space.
This development follows the January 2025 launch of the UK’s AI Opportunities Action Plan, which prioritises scalable, AI-powered tools that support critical public services. With Minute, the government is not only testing next-generation tech—it’s sending a clear signal to the market: AI is officially core to the future of public infrastructure.
Minute AI: A Game-Changer for Government Operations
Minute is the first AI tool of its kind to be used during a Prime Minister-led government meeting, and its early performance has shown remarkable product-market fit in the public sector. Its core strengths include real-time transcription, automated meeting summarisation, speaker recognition, and secure, browser-based processing—all built on enterprise-grade LLMs tailored for compliance in highly regulated environments.
Security is at the heart of the tool’s design. By processing audio data locally via browsers, Minute avoids sending sensitive data to external servers, making it a strong contender for adoption across departments bound by tight compliance rules. The tool also offers custom templates for planning, social care, and legal tasks, along with API integration for interoperability with legacy systems.
Early feedback is promising. Councils like West Berkshire and Stockton-on-Tees report up to 40% time savings on manual note-taking and improvements in documentation accuracy for planning reviews, social care assessments, and public meetings tied to millions in development projects.
What’s more, Minute is just the start. It’s part of the broader ‘Humphrey’ AI suite, which includes tools like Parlex (debate analysis), Consult (feedback summarisation), Lex (legal research), and Redbox (policy review)—a comprehensive AI ecosystem built to deliver on the UK’s £45 billion annual public sector productivity potential.
A Blueprint for UK GovTech Startups and Investors
The timing couldn’t be better. With 91% of councils actively exploring AI solutions, a £5 billion annual spend on local authority tech, and 320 potential public sector customers, the market is wide open. But the opportunity isn’t limited to the UK—these tools could eventually be adapted for international governments, creating global-scale potential.
For VCs and angel investors, Minute’s pilot is a rare window into a validated AI use case with clear ROI, a large target customer base, and a high-stakes environment where innovation is urgently needed.
The UK’s GovTech Catalyst programme, backed by £20 million in funding, is designed to help startups land public sector pilots—with up to 12 months of support. Meanwhile, the National Data Library, a key pillar of the AI Opportunities Action Plan, will create integrated datasets across healthcare, transport, and infrastructure—unlocking huge potential for data-driven AI startups.
The upcoming expansion of the UK’s AI Research Resource (AIRR) and launch of AI Growth Zones will double the country’s high-performance computing capacity by 2026, providing a powerful foundation for startups building next-gen public sector tools.
And yet, the market is still underserved. Only 6% of public sector IT leaders report full digital transformation, and 58% cite workforce skill gaps as a major barrier. Startups offering AI-powered automation, upskilling platforms, and workflow tools are now perfectly placed to address this gap.
With the Minute pilot concluding in July 2025 and results expected to be published shortly after, this initiative is shaping up to be a blueprint for the UK’s GovTech revolution—and a signal that the age of AI-powered governance is officially underway.
