Blog Viewer

For many employees, AI use began as informal experimentation with tools like ChatGPT and Claude, and has rapidly evolved into a regular part of the workday. With AI emerging as a practical assistant that helps save time, streamline tasks and improve productivity. 

AI adoption is currently being driven as much by employees seeking productivity gains as by organisational strategy. From a local government perspective, councils are exploring how AI can help staff work more efficiently, automate repetitive tasks, summarise large volumes of information and data, support decision-making, and improve community engagement. 

The most comprehensive picture of AI adoption in local government across Australia has come from the recent ‘2026 AI Adoption in Victorian Local Government Sector Baseline Report', produced by Local Government Professionals in partnership with Whitehorse City Council in Victoria. The report drew on responses from an end-user AI adoption survey from 2,500 staff across 22 Victorian councils.

The report highlighted that AI adoption is often occurring from the ground up because staff see practical value in it, with personal curiosity and the prospect of time savings being the strongest drivers of use. In fact, individual adoption often outpaced organisational responses, policies, and governance in many organisations. However, the report found that AI adoption remains uneven across the sector, with approximately 25% of respondents remaining non-users, often due to concerns about accuracy, reliability, and the impact of AI on professional judgement. 

On an organisational level, the report also found gaps in AI governance and policies. Councils with a dedicated AI role or team showed greater capability, with structured training, budget allocation, and formalised AI policies. However, for many organisations, policies, governance, and training have not kept pace with employee adoption. As adoption continues to grow, councils will need to balance the productivity benefits of AI with appropriate policies and frameworks to ensure AI is used safely, consistently and responsibly across council operations. 

AI adoption is already translating into practical use cases across the region. In New Zealand, Hutt City Council has emerged as a leader in local government AI implementation. Their AI journey began in 2024 when they developed a dedicated AI strategy and governance framework. The framework is grounded in the Māori values of ‘Tika’ (correctness) and ‘Pono’ (truthfulness), which reflected the Council’s commitment to an ethical and responsible use of AI. This framework was complemented by an AI policy that provided clear guidelines for staff around the appropriate use of the technology. 

This work was followed by the Council’s AI-Volution project, a bold and organisation-wide program that rolled out AI tools incrementally, strategically and ethically. The Council implemented 15 custom-built AI assistants, many of which were developed directly with input from staff. The result was staff saved an average of 38 minutes each per day and the Council saved approximately NZD$900,000 annually. Notwithstanding these gains in speed and efficiency, the Council maintains strict ‘human-in-the-loop’ expectations, with staff needing to review and validate all AI-generated outputs and highlighting that AI needs to supplement human judgement, rather than replace it.  

While much of the discussion around AI focuses on productivity tools, some Australian councils are also applying the technology to infrastructure management. Asset AI is a solution developed by Transport for NSW in collaboration with IPWEA NSW & ACT and Canterbury-Bankstown Council. Road asset data is collected through dash-mounted cameras installed on existing fleet vehicles, such as garbage trucks and street sweepers. AI then analyses the footage to identify defects, including potholes, road cracks, and damaged signage, assesses their severity, and provides maintenance teams with the information they need to prioritise and schedule repairs. The Asset AI program is currently being trialled across metropolitan and regional councils throughout New South Wales, and early results show faster defect identification, reduced reliance on community reporting, and improved road safety outcomes.

Despite the growing enthusiasm for AI, challenges remain. The Victorian baseline report found that employee adoption often outpaced organisational policies, and highlighted the need for clear governance frameworks, training programs and reporting mechanisms. Concerns also remain about the accuracy of AI-generated outputs, potential bias, privacy, and the handling of sensitive information. 

Across the region, councils are already using AI to improve productivity, streamline operations and enhance infrastructure management. Early adopters are demonstrating that when supported by appropriate governance, training and oversight, AI can deliver tangible benefits for both council staff and communities. As the technology continues to mature, councils that combine innovation with responsible implementation will be best positioned to realise the benefits of AI while maintaining the trust of their communities.