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In a bold move to position South Australia at the forefront of technological advancement, Treasurer Stephen Mullighan has unveiled a $28 million Artificial Intelligence (AI) program as part of the 2025–26 state budget. This initiative aims to integrate AI across the public sector, enhancing efficiency, decision-making, and service delivery over the next four years.
The AI program is designed to “maximise on the benefits and promote growing the use of AI applications across the South Australian public sector,” according to the budget documents. Initial focus areas include healthcare and policing, where “proof of value” trials will explore how AI can reduce costs, streamline operations, and support real-time decision-making.
In healthcare, the integration of AI is expected to improve operational efficiency, allowing healthcare professionals to dedicate more time to clinical care. In policing, AI can enhance resource allocation, increase officer and public safety, and reduce administrative burdens, freeing up time for more value-added work. [news.com.au]
A key aspect of the program is its emphasis on ethical implementation and workforce development. Dr. Kathy Nicholson of the Australian Institute of Machine Learning emphasized that the program is focused on upskilling public servants and increasing efficiency rather than replacing jobs. “What this program is really about is upskilling and adopting AI into government service,” she said.
The program includes annual operating costs of $4.6 million and $2.4 million in investments, and it will create five full-time jobs. Additional sectors, such as social work, allied health, and legal and financial services, may also be prioritized.
South Australia’s initiative aligns with national trends, as several jurisdictions, including Queensland and New South Wales, are exploring AI, with a focus on ethical implementation and practical improvements in public services. For instance, the NSW government allocated over $2.7 million in grants to 16 councils in mid-2024 to trial AI in local planning systems, aiming to improve the development application process.
Beyond the AI program, the South Australian budget includes measures to support innovation and economic growth. A new $50 million Early-Stage Venture Capital Fund has been established to back early-stage businesses that need equity capital to commercialize and expand into national and global markets . Additionally, $20 million has been allocated for energy efficiency grants to help small and medium-sized enterprises (SMEs) invest in energy-efficient equipment or site improvements. [smartcompany.com.au]
South Australia’s $28 million investment in AI represents a strategic move to modernize public services, enhance efficiency, and foster innovation. By focusing on ethical implementation and workforce development, the state aims to ensure that AI integration benefits both public servants and the communities they serve. This initiative, coupled with broader economic support measures, positions South Australia as a leader in embracing technological advancements for public good.
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