UK Public Sector Seeks Unified, Secure AI CX Solutions Amid Budget Constraints and Legacy Tech, Says 8x8 Report

The UK public sector is facing a barrage of demands to increase use of AI, improve remote working options, and toughen security while dealing with challenging budgets and desires for improved stakeholder and citizen experiences. That’s the findings of a new report from analysts Cavell Group and 8x8, Inc. (NASDAQ: EGHT), the industry's most integrated platform provider for CX that combines Contact Center, Unified Communication, and Communication APIs.

The 2025 UK Public Sector CX 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 citizen engagement, the report shows common pain points but also the capabilities needed to define who thrives and who fails in the next wave of public sector transformation.

“More than 80% of respondents are currently changing or intending to change their contact center provider in the next two years,” said Jamie Snaddon, EMEA Managing Director at 8x8, Inc. “That means there’s a chance to deliver a better future for public engagement for the majority – but the clock is ticking.”

Common pain points in the UK public sector

The research uncovered several trends that consistently affect all four sectors surveyed:

• Citizen Communication Habits Remain Omnichannel: Despite digital advances, email (74%), phone (68%), and face-to-face (66%) remain the top contact channels. Social media (52%) and live chat portals (45%) are gaining traction.
• Platform Sprawl: 31% of all organizations 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% expect policies to encourage more AI usage within three years. Meanwhile, 74% have been tasked with increasing integration with other government bodies by 2030.
• Security and Compliance Focus: 33% said AI has forced an increased focus on data protection.
• Metric Evolution: Organizations 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 organizations are telling us they’re at a critical turning point,” said Joe McStravick, Vice President, EMEA Sales at 8x8, Inc. “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.”

Sector-specific challenges and priorities

Healthcare

• Top concerns revolve around data security, increased patient expectations, and evolving regulations.
• The sector is also under growing pressure to improve integration with other government IT systems and increase the move to cloud.

Education

• Challenges include outdated collaboration tools, lack of shared knowledge systems, concerns over student data security, and bans on AI usage.
• Legacy communication channels such as email and phone are still heavily in use.

Local Government

• Digital transformation costs, poor network quality, and resistance to automation were cited as key issues.
• The priority for many is transitioning to cloud-based contact centers.

Housing Associations

• Pain points include fragmented communication channels, lack of integration with other relevant services, a dispersed frontline workforce, and concerns around platform and system migrations.
• Security of customer data remains a major focus.
• Many associations still rely on consumer messaging apps to maintain contact with service users.

Tools that aren’t fit for tomorrow’s purpose

“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 organizations can not only meet rising expectations – they can exceed them, creating smarter, faster, and fairer services.”

Implications for the future of CX in the public sector

With 59% of public sector leaders saying AI will be the most transformational factor in contact centers by 2030, the research shows that most organizations 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 center providers taking one year and three months.

The 8x8 Platform for CX, which seamlessly unites contact center, unified communications, and communication APIs to help organizations 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.”

The report is based on research conducted by Cavell Group across 401 senior decision-makers from non-central government organizations across the UK in January 2025.

8x8 and the public sector

To learn more about 8x8’s involvement with the public sector, please visit the 8x8 public sector webpage.

About 8x8 Inc.

8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on the industry's most integrated platform for Customer Experience – combining Contact Center, Unified Communication, and Communication APIs. The 8x8® Platform for CX integrates AI at every level to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. 8x8 helps customer experience and IT leaders become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.

Copyright 8x8, Inc. 8x8® is a trademark of 8x8, Inc. All rights reserved.

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