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Public Sector AI Market Analysis 2026

Public Sector AI Market Analysis 2026

Posted by Ben Pollard Picture of Ben Pollard on 23 February 2026

The public sector AI market is growing quickly; 435 AI contracts worth £699m were awarded by government in 2025, up from 68 contracts worth £30m in 2019.

But where exactly do the opportunities lie? Which frameworks unlock the market? And what does the data say about your go-to-market strategy?

Tussell's new 2026 Public Sector AI Market Snapshot dives deep into the key buyers, suppliers, frameworks and trends driving the market. 

A must-read for anyone looking to do more business with the public sector, the new report covers:

  • The size, growth and trends in the public sector AI market 

  • Which suppliers are billing the most, and which buyers are spending the most on AI

  • What the NHS and local government picture looks like

  • How AI companies are winning work with the government

  • ... and much more!


Download Tussell's Public Sector AI Analysis

Tussell is the market's trusted source of public sector market insights.

To see how Tussell can help you make smarter procurement decisions, click here.