The great enabler: what does the National AI Plan mean for government services?

Rather than embarking on the costly and complex path of creating a standalone AI Act, the Plan reinforces a commitment to adapting and relying on existing technology-neutral legal and regulatory frameworks. This approach is designed to foster innovation, avoid unnecessary regulatory burden, and maintain flexibility as AI evolves.

The Plan will be supported by the AI Safety Institute (AISI), to be established in the new year. There will be ongoing efforts to develop and maintain AI-specific codes, standards and regulations. 

There will also be a continued reliance on robust national security, privacy, and intellectual property legislation, which will be regularly reviewed to ensure fitness for purpose in the AI era.

The Plan reinforces the importance of sector-specific regulation and agency responsibility for identifying, assessing, and addressing AI-related harms.

From a compliance and risk management perspective, there is a strong emphasis on privacy, data governance (including Indigenous data sovereignty), and the need for transparency and human oversight in automated decision-making.

The National AI Plan positions agencies as both implementers and stewards of responsible, inclusive, and innovative AI adoption in Australia's public sector.

This isn't just about embracing or adopting AI as a tool. It is about achieving the organisational capability and confidence needed to integrate AI and produce better outcomes for everyone.

Agencies will lead and deliver their own AI initiatives and AI-enabled services. These will look different for most agencies, shaped by their core functions, data and stakeholders.

Key priorities under the plan include:

• enhanced service delivery and customer experience.
• adopting and deploying AI responsibly in public services.
• investing in workforce upskilling and inclusion programs.
• stronger data governance and privacy.
• regular monitoring, reporting, and refining of AI practices.
• cross-sector and international collaboration.

In practical terms, some of the initiatives and efficiencies we can expect to see government agencies implement under the new AI Action plan and framework include:

• automation of repetitive administrative tasks, such as invoice processing or document classification, freeing up staff for higher-value work.
• predictive AI forecasting of demand for services (eg predicting spikes in healthcare needs or social support requests) to better allocate resources.
• regular audits of AI systems for bias, especially in areas such as recruitment, service eligibility, or resource allocation.
• incident response protocols for responding to AI-related incidents, such as data breaches or algorithmic errors, consistent with the Australian Government Crisis Management Framework.
• mandatory training programs on digital and AI literacy for all staff, with tailored modules for different roles.
• inclusive recruitment, including partnering with organisations supporting women, First Nations peoples, and people with disabilities offering targeted AI skills workshops and internships.
• data governance protocols for handling sensitive data, including Indigenous data sovereignty principles, and training staff on privacy compliance.
• open data initiatives making select government datasets available for AI research and innovation, while ensuring robust privacy protections.
• transparency through clearly identified and explained use of AI in decision-making processes such as automated eligibility checks for grants or services.
• assurance of human oversight in key decisions made with AI assistance.
• collaboration across agencies, industry, and academia to pilot new AI solutions and share best practices.
• international engagement through participation in global forums and standards bodies to stay updated on international best practice and regulatory developments.

The role of in-house legal teams will be as critical as ever. Supporting the delivery of infrastructure to leverage AI and boost productivity means delivering internal policies and procedures for AI adoption and risk management that protect without being prohibitive. This will include supporting agencies by developing transparent, ethical, and inclusive AI practices.

Lawyers will need to advise on compliance with privacy, IP, and security legislation as AI use expands. 

Once established in the new year, AISI will provide support and guidance around safety standards. It will be important for agencies to engage proactively with AISI and other regulatory bodies to shape best practice and respond to emerging risks.

Our dedicated team of specialist government and technology lawyers can assist agency staff to deliver the outcomes required under the National AI Plan. This includes drafting or reviewing AI governance policies consistent with existing legal frameworks (eg privacy, IP, discrimination and the new Commonwealth Procurement Rules), delivering workforce training on legal and ethical use of AI for agency staff, advising on collaboration and data-sharing agreements and technology procurement contracts for AI enabled tools.