By Australian Financial Review
Publication Date: 2026-01-28 22:59:00
The economic imperative
Both federal and state governments are among the country’s largest employers and buyers. According to the Australian Bureau of Statistics, the public sector employs about 18 percent of the workforce and government spending accounts for around 40 percent of gross domestic product.
How governments use AI in finance, human resources, and core operating systems will determine whether the promised boost materializes – or stalls in the pilot phase.
In a public sector built on outdated systems and patchy data, AI is only as good as its foundations.
“There are really big opportunities for government, particularly around productivity,” says Paul Leahy, regional director for public sector at Workday Australia and New Zealand.
Leahy says governments across Australia are increasingly looking at AI as a potential productivity lever, but are focused on understanding how it can be used safely and responsibly in complex, risk-sensitive areas…
