AI and Personalisation in Life-Event Digital Services: Opportunities and Guardrails

The Promise of AI-Driven Personalisation in Government

Australia’s digital government transformation is entering a new era, powered by artificial intelligence (AI) and advanced analytics. These technologies are enabling a shift from transactional, one-size-fits-all services to deeply personalised, proactive support—especially around the life events that matter most to citizens, such as starting a family, changing jobs, or coping with bereavement.

Recent research shows that Australians are enthusiastic about digital government: over 85% have used an online service in the past year, and satisfaction rates consistently exceed 90%. Yet, nearly half of those who experienced a major life event did not use available digital services, often due to gaps in awareness, accessibility, or trust. AI and personalisation offer a powerful solution to these challenges, but they also introduce new responsibilities for government leaders.

How AI is Transforming Life-Event Digital Services

1. Proactive, Personalised Support

AI enables government platforms to anticipate citizen needs and deliver timely, relevant information. For example, automated reminders for health screenings, tailored support for people with disabilities, or notifications about benefits and documentation required for a new job are all made possible by AI-driven analytics. Citizens are increasingly comfortable with this approach: 83% support services that remember their preferences, and 78% are open to personalisation based on employment status or income.

2. Seamless, Cross-Agency Journeys

Life events rarely fit neatly within a single department. AI-powered platforms can orchestrate services across agencies, reducing the need for citizens to repeat information and ensuring a unified experience. The "tell us once" model, already in use in some states, is a prime example—citizens provide their details once and receive coordinated support from multiple agencies.

3. Enhanced Accessibility and Inclusion

AI can adapt digital interfaces for people with disabilities, offer multilingual support, and provide 24/7 assistance through chatbots and automated services. This inclusivity is essential for reaching all Australians, including those in regional areas, lower-income households, and older age groups who may face barriers to digital engagement.

4. Data-Driven Insights for Better Outcomes

By harnessing data and analytics, agencies can identify gaps in service usage, understand citizen pain points, and continuously refine offerings. This data-driven approach not only improves satisfaction but also helps target outreach to those most at risk of being left behind.

Opportunities: From Transactional to Transformational

Guardrails: Ethics, Privacy, and Building Trust

With great opportunity comes great responsibility. As AI becomes more embedded in public services, governments must address critical challenges to maintain citizen confidence:

1. Data Privacy and Security

Trust is foundational. Over half of Australians have concerns about data privacy and security, especially following high-profile breaches. Citizens worry about privacy breaches from storing data in a single source, the risk of being unable to access personal data, and how their information is used. Robust data governance, secure digital identity systems, and transparent communication about data handling are essential.

2. Ethical Use of AI

Australians are broadly supportive of AI in government—55% favour its use to improve services—but 94% expect strong governance and transparency. Citizens want to know how AI systems operate, how decisions are made, and how their data is used. Ethical frameworks, regular updates, and citizen engagement in oversight are critical to ensuring AI enhances, rather than erodes, privacy and agency.

3. Transparency and Citizen Engagement

Clear, accessible information about how AI and data are used builds trust. Involving diverse citizen groups in the design and testing of digital services ensures solutions are responsive to real needs and concerns. Co-designing with vulnerable and minority communities, and providing multiple channels for feedback, can help create services that are intuitive, accessible, and trustworthy.

4. Digital Inclusion and Accessibility

The digital divide remains a persistent challenge. Lower-income households, the unemployed, and those in regional or remote areas are less likely to engage with digital services, often due to barriers such as digital literacy, infrastructure gaps, or lack of trust. Expanding digital literacy programs, maintaining alternative access channels (like phone and in-person support), and designing for accessibility from the outset are vital.

Best Practices for Responsible AI-Enabled Personalisation

To harness the full potential of AI in life-event digital services while safeguarding citizen rights, governments should:

The Path Forward: No Citizen Left Behind

AI and personalisation are reshaping the future of digital government in Australia. By focusing on the moments that matter most, and by harnessing the power of technology, data, and cross-agency collaboration, governments can deliver experiences that truly improve lives. The journey is ongoing, but the destination—a government that is capable, reliable, clear, efficient, empathetic, and holistic—is within reach. Responsible, transparent, and inclusive AI adoption will be the key to building citizen confidence and ensuring that every Australian benefits from the digital transformation of public services.