Artificial Intelligence (AI) is rapidly reshaping the landscape of public sector digital services in Australia. As government agencies embrace AI to deliver more efficient, personalised, and accessible services, they are also navigating a complex web of ethical considerations, citizen expectations, and the imperative for transparency and regulation. The findings from the latest Digital Citizen Report provide a nuanced view of how Australians perceive AI in government, highlighting both the opportunities and the challenges that lie ahead for public sector leaders.
AI’s potential to transform government services is widely recognised by Australians. According to the 2024 Digital Citizen Report, 40% of Australians have used Generative AI in the past year, with 21% engaging with it on a weekly basis. This rapid uptake signals a growing familiarity and comfort with AI-driven technologies. Importantly, 55% of Australians support the use of AI to improve government services, with support especially strong among younger citizens, high-income households, and those who have had positive experiences with digital government services following significant life events.
AI is seen as a tool to drive convenience, reduce wait times, and provide 24-hour support. Over three-quarters of survey respondents identified at least one benefit of AI in government, such as faster service delivery and improved access to information. Use cases like automated health screening reminders and personalised support for citizens with disabilities are particularly well received.
Despite broad support, Australians are acutely aware of the risks associated with AI in government. The Digital Citizen Report reveals that 94% of respondents have concerns about AI, and 92% want to see government regulation of AI systems. Key concerns include data security and privacy (49%), the potential for job losses (44%), and a preference for human interaction (57%).
Trust is a recurring theme. Recent high-profile data breaches have eroded public confidence, with 52% of Australians reporting a loss of trust in the government’s ability to safeguard data. This decline is especially pronounced among younger citizens and those in precarious financial situations. Privacy concerns have also risen sharply, with 48% of Australians more worried about data privacy in 2024 compared to 37% the previous year.
Transparency is paramount. Nearly half of Australians (46%) want full transparency into the code behind government AI systems, a figure that rises among those with mental health challenges or financial stress. Citizens are calling for clear communication about how AI systems work, how decisions are made, and how their data is used and protected.
While satisfaction with digital government services is high—93% of users report positive experiences—there is a growing digital divide. Lower-income households, the unemployed, and those without university education are less likely to use or trust digital services. A third of households earning less than $100,000 struggle to find, use, or understand online government services, compared to just 23% of higher-income households. Vulnerable groups, including those with health or mental health challenges, are also less likely to see the benefits of AI and more likely to express concerns about its use.
Bridging this divide requires a human-centric approach to service design, expanded digital inclusion programs, and targeted support for disadvantaged groups. Improving digital infrastructure, addressing affordability, and enhancing digital literacy are essential steps to ensure that the benefits of AI are accessible to all Australians.
The path forward for AI in Australian government services is clear: responsible, ethical, and citizen-centric implementation must be the priority. Based on citizen feedback and best practices emerging from the Digital Citizen Report, government leaders should focus on:
AI offers transformative opportunities for Australian government services, from streamlining processes to delivering more personalised and accessible experiences. However, realising these benefits requires a steadfast commitment to ethical leadership, transparency, and inclusion. By listening to citizens, addressing their concerns, and embedding responsible AI practices at every stage, government leaders can build the trust and confidence needed to unlock the full potential of digital transformation—ensuring that no citizen is left behind in Australia’s AI-powered future.