About this series

This series highlights leading international policy institutes and partnerships that are helping governments translate evidence into practical policy and service reform. Through short case studies, it explores how different countries are strengthening evidence-informed policymaking and what lessons these approaches may offer for Australia.

As Australia seeks to harness the opportunities presented by artificial intelligence, policymakers face the challenge of translating rapidly evolving technologies into practical implementation across government. Alongside efforts to establish safeguards for the equitable use of AI, there is growing recognition of the need to build capability within the public sector itself, including through ‘Sovereign AI’ and digital public infrastructure.

Similar challenges are emerging in the UK, where governments are seeking practical ways to build internal capability while responding to rapidly evolving technologies. The Policy Insights Unit (PIU) is addressing this challenge through its government-embedded consulting model, helping departments strengthen AI capability and integrate emerging technologies into policy and service delivery.

AI, education and capacity-building

PIU’s AI Adoption Unit helps UK government departments build the capability needed to assess, test and implement generative AI responsibly. Organised as an in-house expert consultancy backed by university partners, this new stream of work deeply focuses on building AI literacy. Through a tailored toolkit, the Unit combines workshops, implementation roadmaps and strategic reviews to help civil servants develop practical AI capability while mitigating AI-related risks.

One example is PIU’s collaboration with the Department of Education through the Regions, Skills and Schools Group. Through a series of workshops, the Unit has supported officials in developing practical approaches to integrating AI into everyday work while establishing appropriate governance and safeguards. Alice Douglas, Deputy Director of the Department of Education, described the workshops as instrumental in establishing essential “guardrails” within the department regarding day-to-day use of AI.

Embedding a cost-recovery model

Leveraging PIU’s embedded position, additionally supported by university partners, the team’s cost-recovery model is a key funding stream. This allows PIU to directly charge the government departments for tailored policy support. The distinctive feature of the model is that it combines the advantages of a think tank or consultancy with the practical realities of working within government.

This positions the team as a quicker alternative to external procurement routes, cheaper than outsourcing comparable work and better placed to understand policy teams’ constraints within government. In that sense, the approach is about working alongside officials to scope live problems, adapt delivery as the work develops and translate external insight into options that are usable within government systems.

PIU’s work is demand-led and bespoke: Over time, the organisation has expanded beyond expert engagement to become a broader in-house policy consultancy. Alongside the AI Adoption Unit, PIU has established dedicated evaluation and systems thinking teams, reflecting evolving demand from government departments. The team’s capacity to work closely with government partners enables it to continue adapting and expanding its offerings to meet emerging needs.

Insights for Australia

Australian responses to the need for stronger in-house policy capability are evident in the recently established Australian Government Consulting (AGC) unit within the Department of the Prime Minister and Cabinet and the Australian Centre for Evaluation (ACE) in the Treasury Department.

The establishment of AGC reflects a similar ambition to strengthen expertise within government and reduce reliance on external consultancy models. In this sense, the PIU case offers a useful comparison for Australia: both models seek to provide practical, responsive support to policy teams from within or close to government.

PIU also highlights an alternative model for funding and delivering policy support. Its embedded, cost-recovery approach enables government departments to access specialist expertise on demand while supporting longer-term capability development across the public sector.

Both the PIU model and Australia’s growing in-house investment in policy capability reflect a broader shift towards embedding expertise closer to government. Alongside initiatives such as AGC or ACE, the Australian Public Policy Institute offers a complementary model through its partnership with universities and government, connecting policymakers with academic expertise while supporting capability development and evidence-informed policymaking.

Collectively, these approaches highlight the value of sustained partnerships that bring expertise closer to government and support more responsive policymaking

Learn more about PIU here: https://www.gov.uk/government/organisations/open-innovation-team

Lara Bate is an External Affairs Associate at the Australian Public Policy Institute. She is currently completing a Master of International Development at the Geneva Graduate Institute.