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2026 is looking like the year of Artificial Intelligence (AI).
While AI has been around for some time now, its prevalence in the corporate world has reached an all-time high with corporate entities across the globe racing to adopt and build an array of AI tools for seemingly endless purposes.
It is not surprising that governments are also looking at how they can leverage AI both through its contracted service providers and in an-house capacity. In the 2023/24 financial year, 56 government entities reported using some form of AI in their operations, up from 36 in the 2022/23 financial Year. This number is expected to grow significantly by the 2024/25 and 2025/26 financial years.
Unfortunately, hand in hand with the benefits and opportunities that AI presents are the risks and need for appropriate and robust governance.
In 2025, the Joint Committee of Public Accounts and Audit published a report regarding its inquiry into the use and governance of artificial intelligence systems by public sector entities, with the title of the report ominously containing the phrase 'proceed with caution'.
The Australian National Audit Office has also identified the following risks with the adoption of AI:
- lack of transparency
- bias and discrimination
- security and privacy concerns
- legal and regulatory challenges
- misinformation
- manipulation
- unintended consequences.
Despite these risks and cautions, AI is not going anywhere. We have been assisting government agencies in managing these risks and adopting AI with the appropriate safeguards and frameworks in place.
The DTA is publishing and updating a suite of guidance documentation to assist agencies to appropriately engage with these risks, including technical standards and an AI impact assessment tool. Agencies looking to adopt AI or use generative AI should address some of the other key considerations we outlined in our earlier article here.
Ultimately, AI will continue to reshape the public sector, bringing both efficiency and complexity that will need to be managed to maintain public trust.
If you have any questions on AI use in government, please contact us here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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