Article: How Generative AI is shaping Australia’s public sector

Generative AI is set to transform the Australian Public Service by enhancing chatbot functionality and improving citizen interactions. While the integration involves significant upfront costs and ethical considerations, the long-term benefits include cost savings and streamlined service delivery.

With insights from Andrew Spiegelman, Head of Data and Analytics at Service NSW, this article will cover:

  • Opportunities from generative AI to improve public service delivery
  • Current and upcoming projects leveraging generative AI
  • Risks & challenges when integrating generative AI into the public sector
  • Possible impacts on the Australian public sector workforce

Utilising chatbots for efficient, effective & fully functional interactions with citizens

The advent of generative AI promises to transform the Australian Public Service and offer new opportunities to enhance program delivery. Over the next year, government agencies and departments are expected to integrate GenAI into their operations, significantly improving citizen interactions and streamlining internal processes.

One of GenAI's immediate applications in public service is the enhancement of chatbots. ‘More agencies will use GenAI in their chatbots, moving them closer to being fully functional channels for interactions between citizens and agencies,’ says Andrew Spiegelman, Head of Data and Analytics at Service NSW. This evolution will enable chatbots to handle a wider range of inquiries and transactions, providing a more efficient and accessible means for citizens to engage with public services.

An example of an ongoing project leveraging GenAI is Service NSW's initiative to develop its chatbot into a fully functional service channel. This project aims to position the chatbot alongside the website, mobile app, service centres, and contact centres as a primary means for citizens to transact with Service NSW. The anticipated impact of this project is substantial, as it promises to streamline service delivery, reduce wait times, and enhance user satisfaction.

Analysing the risks & benefits of Generative AI in the public sector

Integrating GenAI into public sector operations has its challenges. ‘It's expensive to do GenAI properly, especially with a full chatbot channel,’ Spiegelman says. ‘Long-term, it’ll save the agency significant money because digital transactions are cheaper than live transactions.’ Importantly, these advancements are not expected to lead to job cuts but rather to a decrease in the overall cost of service delivery.

The impact of GenAI on the public sector workforce is expected to be minimal in the short term. Current use cases for GenAI primarily include document summarisation, document drafting, and code drafting—tasks that supplement rather than replace human effort. ‘Even once we build a fully functional chatbot, we don't expect it to reduce our workforce. Maybe GenAI will get to the point where many people will be better off using it, but we're not there.’ Instead, GenAI is anticipated to become a tool that enhances the capabilities of public sector employees.

The integration of GenAI also raises important ethical considerations. Policies and guidelines must be established to ensure the ethical use of GenAI in public service. This responsibility typically falls to privacy, security, and data governance teams, who must develop frameworks that safeguard against misuse and protect sensitive information.

The future of Generative AI for government

Integrating GenAI into the Australian Public Service presents numerous opportunities for improving service delivery. While significant challenges and ethical considerations exist, the long-term benefits of enhanced efficiency, cost savings, and improved citizen interactions are substantial.


Hear more from Andrew Spiegelman and other industry leaders at the Generative AI Summit for Government and gain access to cutting-edge insights and strategies that will put your organisation ahead of the curve. Learn more.

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