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Government Policies

Over the curve: How government departments need to get smart about AI

Last updated: August 11, 2025 12:45 pm
Published: 9 months ago
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Government departments don’t need hype or high-risk experiments. They need trusted tools that deliver safe returns and improve public services.

AI hype is everywhere. A 2024 report predicts that generative AI has the potential to affect 44 per cent of all working hours across industries, and almost half of all work activities could be automated by 2030.

There’s no question that AI will drastically change day-to-day government operations. But like with so many technology stories over the years, a wave of disillusionment is building behind that wave of hype.

Gartner research shows only 60 per cent of AI projects move from prototype into production, and of those that do, about 85 per cent are regarded as failures, either not delivering returns or not delivering the results expected.

Government departments don’t need hype or high-risk experiments. They need trusted tools that deliver safe returns and improve public services.

While the discussion around AI can feel like it’s all about what’s coming next, AI is already here and has been for years, working behind the scenes in the tools people use every day.

Expense management platforms that scan receipts and pre-fill claims; search functions that suggest results before you finish typing; email filters that sort out spam before it reaches your inbox — all of these rely on AI to save time and reduce noise, so teams can focus on what matters.

In modern ERP systems, AI helps governments process transactions more efficiently, surface accurate data for informed decisions, and automate repetitive administrative tasks.

AI Hype has led some organisations to jump in without clear goals, only to end up with costly tools that don’t fit.

For governments, the priority should be using AI where it can safely add value, improve decisions, and remove repetitive tasks already draining staff time. This is where embedded, trusted AI in everyday platforms makes a real difference.

AI will transform government services, but only where it’s adopted with purpose and aligns with risk frameworks. Departments are, by and large, resisting pressure to chase trends that deliver little in return.

Governments can’t ignore the risks. Bias, poor data quality, and a lack of transparency can lead to outcomes that undermine trust, not just in the technology, but in governments themselves.

Globally, serious legal challenges emerging over claims of bias in AI systems. These cases underscore the importance of clear governance and risk frameworks when implementing AI at scale.

For government, it’s about choosing technology that adds value without introducing hidden risks. When it comes to AI tools, that means finding ones that are transparent, explainable, and aligned with compliance needs.

Every investment needs to deliver value. For AI, that means measuring success by the outcomes it creates, not the novelty it promises. Tools that reduce admin, improve data accuracy and support faster decision-making are the kind of safe returns agencies should look for when balancing tight budgets with growing demands.

At TechnologyOne, we embed AI within our ERP to automate expenses, enhance search, and detect issues before they escalate. These are proven tools that reduce daily admin and let staff focus more on their communities.

We’re building on this with 26 new AI features in our upcoming 2026A release, previewing at Showcase this October. Backed by strong guardrails, these improvements will make AI a core part of every TechnologyOne release, delivering safer, smarter outcomes for government.

TechnologyOne has been helping government departments modernise with confidence for over 37 years. More than 230 agencies trust us to support critical operations while ensuring data sovereignty and compliance.

OneGovernment is fully Australian-made and supported, designed around government policies and workflows to reduce complexity and risk. Our SaaS+ model means we take responsibility from implementation through to ongoing support, delivering outcomes at a fixed cost and with faster deployment.

As AI becomes a core part of government systems, it’s essential to work with a partner who prioritises safety, accountability, and real-world value.

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