Ethical AI in Government: Building Trust and Transparency in the Age of Digital Services

Artificial Intelligence (AI) is rapidly transforming the landscape of public services in Australia. From streamlining administrative processes to delivering more personalised citizen experiences, AI holds the promise of making government services more efficient, accessible, and responsive. Recent research shows that 40% of Australians have used generative AI in the past year, and over half (55%) support its use to improve government services. This enthusiasm is driven by tangible benefits: reduced wait times, 24-hour support, and the ability to tailor services to individual needs.

Yet, as AI becomes more embedded in the delivery of public services, it brings with it a new set of challenges—chief among them, the need to build and maintain public trust. Concerns about data privacy, security, job displacement, and the ethical use of AI are top of mind for citizens. In fact, 94% of Australians expect strong governance and transparency around AI regulation, and 92% want clear oversight of how AI is used in government.

Citizen Concerns: Data Privacy, Security, and the Digital Divide

The digital transformation of government has been a success story in many respects. Platforms like myGovID and digital wallets have made it easier for Australians to access healthcare, financial, and life-event services. Satisfaction rates with digital government services remain high, with 93% of users expressing satisfaction. However, beneath this progress lies a growing trust deficit. Over half (52%) of Australians have lost trust in the government’s ability to protect their data, and 56% express doubts about how their information is kept safe. This marks a significant decline from just two years ago, when 92% of citizens expressed confidence in digital government services.

This erosion of trust is particularly pronounced among younger Australians, those in precarious financial situations, and disadvantaged groups. Lower-income households, the unemployed, and individuals without higher education are less likely to use digital government services and more likely to report negative experiences. For example, 33% of low-income households struggle to find or use digital services, compared to just 23% of higher-income households. Barriers such as lack of digital literacy, poor infrastructure, and uncertainty about the benefits of emerging technologies further compound these challenges.

The Role of AI: Opportunities and Risks

AI offers significant opportunities for government to deliver more personalised, efficient, and accessible services. Australians are generally comfortable with AI-enabled services that remember their details or recommend services based on previous interactions. Use cases such as automated health screening reminders and personalised support for people with disabilities are widely supported.

However, the adoption of AI in government is not without risks. Key concerns include:

Data privacy and security: Nearly half of Australians are concerned about how their data is shared between government departments, and 48% cite privacy as a top concern—up from 37% the previous year.
Job displacement: 44% worry about the potential for AI to replace human jobs in the public sector.
Transparency and control: Nearly half of citizens want full transparency into the code behind AI systems, with this sentiment even stronger among those facing financial or mental health challenges.
Loss of agency: Many citizens fear losing control over their personal information and the ability to resolve issues if something goes wrong.

Best Practices for Responsible AI Implementation

To harness the benefits of AI while addressing citizen concerns, Australian governments must adopt a robust, ethical, and citizen-centric approach to AI implementation. Key best practices include:

1. Transparent Communication

Clearly articulate how citizen data is collected, stored, and used in AI systems.
Provide regular updates on security measures and progress with digital initiatives.
Address concerns proactively, especially following data breaches, to reassure the public.

2. Robust Data Governance

Implement strong security protocols and privacy safeguards across all digital platforms.
Limit data sharing between departments to what is strictly necessary, and communicate these boundaries to citizens.
Invest in secure digital identity systems, like myGovID, that minimise the amount of data citizens need to share.

3. Ethical and Inclusive AI

Adopt responsible AI practices, with clear governance and transparency around how AI is used in public services.
Engage citizens in the design and oversight of AI-enabled services, ensuring their concerns are heard and addressed.
Ensure that AI and other emerging technologies are used to enhance, not erode, citizen privacy and agency.
Design services that are human-centric and accessible, ensuring that no one is left behind.

4. Regulatory Frameworks and Citizen Engagement

Develop and enforce regulatory frameworks that set clear standards for ethical AI use in government.
Involve citizens in the development and oversight of AI policies, particularly those from disadvantaged or vulnerable groups.
Provide omnichannel experiences and support, allowing citizens to engage with government services in the way that suits them best.

5. Digital Inclusion and Skills Development

Expand digital inclusion programs to target disadvantaged groups, including those with lower incomes, rural residents, and minority communities.
Invest in digital skills development and infrastructure to close the digital divide.

The Path Forward: Trust as the Foundation of Digital Government

Trust is the critical enabler of digital transformation. When citizens feel confident that their data is secure and their privacy respected, they are more likely to embrace new services, support innovation, and participate fully in the digital economy. The surge in myGovID adoption and positive experiences among its users demonstrate the power of trust to drive engagement and satisfaction.

However, trust must be continually earned. As AI becomes more prevalent in government services, the need for ethical leadership, transparency, and citizen-centric design becomes even more critical. Meeting these expectations is essential to unlocking the full potential of digital transformation.

At Publicis Sapient, we believe that with the right strategies—grounded in transparency, robust governance, and inclusive design—governments can accelerate digital adoption, deliver lasting value for all Australians, and ensure that no one is left behind in the digital future.