Evolving IT Solutions: AI Integration and Risk Management in Australian Local Government

By Daniel O’Donnell, Category Manager

As Information Technology (IT) rapidly evolves, local councils across Australia must continually adapt their Information and Communication Technology (ICT) solutions to meet the increasingly complex demands of their communities. The integration of Artificial Intelligence (AI) within governmental systems is a critical part of this adaptation, offering transformative benefits but also requiring robust strategies for managing cybersecurity and risks. This article explores how AI is utilised in local government and focuses on key considerations for cybersecurity and risk management.

AI Integration in Local Government ICT Systems

Although the use of AI is rapidly expanding across society including Local Government, it is still somewhat in its infancy. Within a short time,  AI is poised to transform government services by introducing a wave of innovation that promises to enhance efficiency, responsiveness, and accessibility. 

With AI's capabilities in predictive analytics, real-time data processing, and automated decision-making, governments can revolutionise public service delivery. From optimising resource allocation and urban planning to improving public safety and healthcare, AI will enable more personalised and proactive approaches. 

The integration of AI-powered tools, such as virtual assistants and predictive modelling, will streamline administrative processes, improve public engagement, and support sustainable development. As AI advances, its application in government services will unlock new opportunities for smarter, more effective governance.

In Queensland, local councils are leveraging AI to tackle diverse challenges. The Gold Coast City Council has introduced AI chatbots to offer round-the-clock customer service. These chatbots handle various tasks, from reporting issues like potholes to providing information about council services, improving response times, and allowing human staff to focus on more complex matters. 

Similarly, Logan City Council has implemented smart parking solutions that use AI to monitor parking spaces in real-time and provide information to drivers, improving traffic flow and parking efficiency. 

Ensuring Resilience Against Cyber Threats

While AI brings numerous benefits, it also introduces new cybersecurity risks. AI systems can be targets for cyber threats such as hacking, data breaches, and ransomware attacks. To mitigate these risks, local governments need robust cybersecurity measures.

A multi-layered approach to cybersecurity is crucial, combining traditional security practices with AI technologies. This approach includes enforcing strong access controls, performing regular software updates, utilising encryption, and conducting employee training. By integrating AI-driven defences with established security practices, local governments can better safeguard their ICT systems against evolving cyber threats.

Managing Risk Profiles in Local Government

Effective risk management is essential for the successful integration of AI into local government ICT systems. This process involves identifying potential risks, assessing their impact, and implementing mitigation strategies.

Staff training and awareness programs play a crucial role in managing risk. Local councils should offer ongoing training to employees on cybersecurity best practices and the responsible use of AI technologies. 

Embracing AI for the Future

The integration of AI into Australian local government ICT systems offers substantial opportunities to enhance service delivery, operational efficiency, and community engagement. 

However, the adoption of AI also presents challenges related to cybersecurity and risk management. Ensuring resilience against cyber threats requires advanced AI-driven security solutions and a multi-layered approach to cybersecurity. Effective risk management involves regular assessments, adherence to regulatory standards, and comprehensive staff training.

By addressing these challenges and embracing innovative AI practices, local governments can navigate the complexities of the digital age and improve their ICT solutions to benefit their communities.

To maximise utilisation of AI, councils can follow several key steps:

1. Develop a Clear Strategy: Establish a comprehensive AI strategy that outlines goals, priorities, and a vision for AI adoption. This strategy should align with national interests and address areas where AI can have the most impact.

2. Invest in Education and Skills Development: Focus on building a skilled workforce by investing in education and training programs that cover AI and related fields. This includes both upskilling current employees and preparing future generations.

3. Promote Research and Innovation: Support research initiatives and innovation in AI through funding, grants, and partnerships with academic institutions and industry leaders. A good example is  Rockhampton Regional Council and the Queensland AI Hub.

4. Establish Ethical Guidelines and Regulations: Create a framework for the ethical use of AI, including privacy protection, transparency, and accountability. 

5. Foster Collaboration: Encourage collaboration between government agencies, private sector companies, and academia. Joint projects and public-private partnerships can accelerate AI development and deployment.

6. Upgrade Infrastructure: Invest in modernising IT infrastructure to support AI capabilities. This includes high-performance computing resources and data management systems.

7. Leverage Data Wisely: Develop policies for data governance and ensure that data used for AI is accurate, comprehensive, and secure. Effective data management is crucial for training AI models and making informed decisions.

8. Adopt Cloud Technologies: While moving to the cloud is not strictly necessary, it can provide significant advantages. Cloud platforms offer scalable computing resources, flexibility, and access to advanced AI tools and services. 

9. Implement Pilot Projects: Start with pilot projects to evaluate AI applications in various government functions. This helps in understanding practical challenges and refining strategies before wider deployment.

10. Monitor and Evaluate: Continuously monitor the performance and impact of AI systems. Evaluate outcomes, gather feedback, and make necessary adjustments to ensure that AI initiatives are meeting their objectives.

By taking these steps, councils can maximise the benefits of AI while managing risks and ensuring that technology serves the public good.

Local Buy has two dedicated technology Arrangements that councils can use to procure ICT goods and services from pre-qualified local suppliers:

ICT Solutions, Products, Services & New Technologies (LB308)      Telecommunication Services (NPN1.18)

For more information contact ICT Category Manager, Daniel O’Donnell DODonnell@localbuy.net.au