The UK public sector is facing ever-increasing demands to ramp up their use of AI, and to improve remote working options and security, while dealing with challenging budgets and the need for better stakeholder and customer experiences.
Those are some of the key findings of a new study by Cavell Group and 8x8 entitled the 2025 UK Public Sector CX Report.
The report lays bare the glaring gaps in digital maturity, strategy and frontline service capabilities across local government, housing, healthcare and education. Highlighting the fragmented state of customer engagement, the study has revealed the common pain points as well as the capabilities needed to for public sector transformation.
“More than 80 per cent of respondents are currently changing or intending to change their contact centre provider in the next two years,” said Jamie Snaddon, EMEA managing director at 8x8. “That means there’s a chance to deliver a better future for public engagement for the majority – but the clock is ticking.”
The research uncovered several trends that consistently affect all four sectors surveyed:
• Citizen communication habits remain omnichannel: Despite digital advances, email (74 per cent), phone (68 per cent) and face-to-face (66 per cent) are still the top contact channels. Social media (52 per cent) and live chat portals (45 per cent) are also gaining traction.
• Platform sprawl: 31 per cent of organisations said their biggest internal communication challenge is that staff are using multiple, disconnected platforms. Integrated, all-in-one solutions remain the exception rather than the norm.
• AI and data integration pressures: 47 per cent expect policies to encourage more AI usage within three years. Meanwhile, 74 per cent have been tasked with increasing integration with other government bodies by 2030.
• Security and compliance focus: 33 per cent said AI has forced an increased focus on data protection.
• Metric evolution: Organisations are rethinking success, moving beyond traditional metrics to more outcome-based, real-time analytics by 2030.
Public sector leaders also highlighted core operational issues with external communication, including long customer wait times, customers having to repeat themselves, call quality issues, and insufficient data reporting and training tools.
“Public sector organisations are telling us they’re at a critical turning point,” said Joe McStravick, vice president, EMEA sales at 8x8.
“There’s a clear appetite to improve citizen services as expectations around AI, data and omnichannel engagement delivery increase. But for many, delivery of the tools, and training on their use, is not keeping pace – and that’s often down to budgets.”
“While there is no shortage of ambition, the reality is that fragmentation, outdated technology and security concerns are still widespread,” said Finbarr Begley, senior analyst at Cavell. “The issue is budget, which means the path forward will demand strategic focus, better vendor partnerships, and a renewed investment in people and training. With the right platforms and policies, public sector organisations can not only meet rising expectations – they can exceed them, creating smarter, faster and fairer services.”
With 59 per cent of public sector leaders saying that AI will be the most transformational factor in contact centres by 2030, the research shows that most organisations are still early in their AI journey. While there is a focus on improving call routing, training, proactive citizen engagement and self-service, many lack the infrastructure or insights to scale effectively.
Equally, concerns over security, cloud transition risks and regulatory obligations influence buying decisions.
The most important vendor selection criteria cited across all sectors include product functionality, brand reputation, and expertise in compliance and integration, with the mean average for changing contact centre providers taking one year and three months.
The 8x8 Platform for CX, The 8x8 Platform for CX, which seamlessly unites contact centre, unified communications and communication APIs to help organisations connect customers and teams globally, is designed to directly address the needs of the public sector. The platform features AI-powered analytics, omnichannel routing and secure interoperability across systems.
“These challenges speak to why unified CX matters more than ever,” added Snaddon. “Public service teams want to deliver better outcomes, but fragmented systems and inconsistent citizen experiences hold them back. A single secure, AI-powered CX platform can give them the data, insights and flexibility they need – whether that’s streamlining calls, improving accessibility or helping mobile teams stay connected in the field.”