Personalising Public Services with AI: Opportunities and Challenges for Citizen-Centric Government

Artificial intelligence (AI) and generative AI are rapidly transforming the landscape of public service delivery. Across Australia, government agencies are moving beyond digitising existing processes to create more personalised, efficient, and accessible experiences that truly put citizens at the centre. As digital adoption accelerates, the next wave of innovation is focused on tailoring services to individual needs—while balancing the critical imperatives of privacy, inclusivity, and trust.

The Promise of Personalisation: AI’s Transformative Potential

AI and generative AI technologies are enabling governments to deliver services that are not only faster and more convenient, but also more relevant to each citizen’s unique circumstances. Recent research shows that Australians are increasingly comfortable with digital services that remember their preferences, recommend relevant offerings, and tailor content based on their life events, employment status, or health needs. For example:

83% of Australians are comfortable with government digital services that recall previous interactions.
78% support personalisation based on employment status or income.
Use cases such as automated health screening reminders or tailored support for people with disabilities are highly popular, with over 80% support.

AI-driven personalisation brings tangible benefits:

Improved accessibility: AI can adapt content for people with disabilities, offer language support, and optimise interfaces for different devices, making services more inclusive.
Reduced wait times: Automation and AI-powered chatbots handle routine queries, freeing up human agents for complex cases and significantly reducing call and processing times.
Tailored support: AI can proactively recommend services—such as health screenings or financial assistance—ensuring citizens receive timely, relevant help.
24/7 availability: AI enables round-the-clock support, allowing citizens to access services whenever they need them.

Real-World Impact: Life Events and Mental Health Support

Personalised digital services are making a real difference in key moments of citizens’ lives. Life-event services—supporting births, marriages, job changes, or bereavement—are increasingly tailored and connected, delivering support when it matters most. For mental health, digital services have proven especially valuable: 72% of people with a mental health condition say online consultations make them more likely to seek help, with comfort levels highest among younger Australians.

The Digital Divide: Ensuring No One Is Left Behind

Despite high satisfaction rates (over 90%) with digital government services, a growing digital divide threatens to leave vulnerable groups behind. Lower-income households, the unemployed, those without university education, and people in rural areas are less likely to engage with digital services and often report more difficulty navigating them. For instance, a third of low-income households struggle to find or use online government services, compared to just 23% of higher-income households.

Bridging this divide requires:

Expanding digital literacy programs to reach all Australians, especially disadvantaged and minority groups.
Designing for accessibility and inclusivity from the outset, ensuring that no one is left behind.
Centralising digital platforms to provide a consistent, user-friendly experience across all government services.

Trust, Privacy, and Transparency: The Foundations of Citizen-Centric AI

While Australians recognise the benefits of AI, concerns about data privacy and security are rising. Over half (52%) have lost trust in the government’s ability to protect their data, and 56% express doubts about data safety. High-profile data breaches have heightened these anxieties, particularly among younger citizens and those in financially precarious situations.

Citizens are calling for robust governance:

94% express concerns about the risks of AI, including data security, privacy, and the potential for job losses.
92% want government regulation of AI, and 88% seek transparency in how AI is used.
Nearly half want full transparency into the code behind AI systems, with this sentiment even stronger among those with recent mental health challenges or precarious finances.

To foster trust and drive adoption, governments must:

Clearly communicate how personal data is used and protected.
Implement strong data governance and security measures.
Engage the public in the design and rollout of AI-enabled services, ensuring transparency and accountability at every stage.
Regularly update citizens on progress and address concerns proactively.

Best Practices for Designing Citizen-Centric Digital Experiences

Delivering on the promise of personalised, AI-enabled public services requires a holistic, citizen-first approach:

Adopt a product mindset: Manage digital services end-to-end, with multidisciplinary teams focused on continuous improvement and value creation for citizens.
Prioritise digital communication: Use AI to enhance two-way engagement, provide clear updates, and encourage feedback to build trust and improve compliance.
Champion equity and accessibility: Ensure all services are designed to be inclusive, accessible, and responsive to the needs of diverse populations.
Build trust through transparency: Be upfront about when citizens are interacting with AI versus humans, and provide clear information about data use and security.
Measure and adapt: Use analytics to track the success of AI-driven personalisation, identify gaps, and continuously refine services based on citizen feedback.

The Path Forward: Responsible Innovation for All

Australia’s digital government strategy is delivering strong results, but the journey is ongoing. The next phase of transformation will require ethical, transparent AI implementation that addresses citizen concerns and regulatory expectations, inclusive design that ensures accessibility and equity, and continuous public engagement to build trust and adapt services to evolving needs.

By harnessing the power of AI and generative technologies—while upholding the highest standards of ethics, transparency, and inclusion—governments can create digital services that truly serve every citizen, now and into the future. The opportunity is immense: to deliver more accessible, efficient, and personalised public services that build trust, close the digital divide, and deliver real value for all Australians.