In a bold move to future-proof its public services, the South Australian government has allocated $28 million over four years to integrate artificial intelligence (AI) across sectors including healthcare, policing, finance, and law. Treasurer Stephen Mullighan announced the initiative in the 2025–26 state budget, marking a significant step toward embracing digital transformation within government operations.
AI to Tackle Efficiency Gaps in Healthcare and Policing
The initiative will kick off with “proof of value” trials in healthcare and policing, aiming to validate AI’s potential before broader adoption. The state government sees AI as a solution to rising cost pressures and staffing inefficiencies.
In policing, AI will help optimize resource allocation, enhance real-time decision-making, and reduce administrative workload, ultimately improving both officer and public safety.
Scope and Funding Details
The South Australian government’s $28 million AI initiative, spread over the 2025–26 to 2028–29 period, is part of the broader Digital Investment Fund and aims to modernize public sector operations through trusted foundational technologies and strong governance.
With annual allocations of $4.6 million for operating expenses and $2.4 million for investment expenses, the program is expected to create five full-time roles. Initially targeting key sectors such as healthcare and policing, the initiative will also extend to allied health, social work, legal, and financial services, driving innovation and efficiency across government services.
AI Adoption Across Australia
South Australia joins a growing list of Australian jurisdictions experimenting with AI. For instance:
- NSW invested $2.7 million in 2024 to fund AI trials in council planning systems.
- Queensland’s Information Commissioner warned earlier this year that a “wait and see” approach could cause the public sector to fall behind in responsible AI adoption.
Conclusion
South Australia’s $28 million AI program is a decisive step toward a smarter, more efficient public sector. By targeting critical areas like healthcare and policing first, the state aims to demonstrate value before scaling solutions. As governments across Australia navigate the risks and opportunities of AI, South Australia is setting a benchmark for responsible, practical AI integration—one focused on upskilling, efficiency, and long-term sustainability.
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