Councils in Australia are under pressure to do more with less: be more productive, fix their finances, and meet growing demands from citizens. New AI technologies, like generative AI and agentic AI, can help a lot. However, there are challenges like making sure data is secure and stays in Australia, and training staff.
Today, people expect quick, personalised services from the government, similar to what they get from private companies. Because of this, and the rise of generative AI, the public sector needs to use data and analytics better. A big majority (91 per cent) of Australians and New Zealanders are willing to share their data if it benefits them, and if councils keep it secure. This willingness can really help councils innovate and offer better services, as long as data is handled safely.

Generative AI can create content and automate complex tasks, like drafting reports, summarising meetings, and personalising messages. Agentic AI is even more advanced; it can act independently to achieve goals, like navigating government processes, gathering information, and helping citizens find out what services they are entitled to. Both technologies can make things more efficient by automating repetitive tasks, improving services by making them faster and more personal, and helping councils make better decisions using data. The public is ready for this, with 71 per cent comfortable using generative AI for information and services, and 30 per cent preferring an AI agent for quicker help if available.
However, just having advanced technology isn’t enough. People who work in the public sector need to be skilled to use data effectively. Councils must invest in training staff in AI and data literacy. Without employees who can understand, use, and apply AI insights ethically, even the best systems won’t work well. This training will lead to better data handling, successful AI adoption, innovation, and problem-solving, and will build public trust.
There are also hurdles to overcome, such as data being stuck in separate systems, a lack of skilled workers, and concerns about where data is stored and if it meets security standards. Old systems make it hard to combine and standardise data. Government IT systems need to communicate smoothly. Technology is changing fast, so workers need to learn about data literacy, AI ethics, and how to give instructions to AI (prompt engineering). For Australian councils, it’s vital to ensure data is secure, probably stored in Australia, and meets security and privacy rules. Ethical concerns like fairness and transparency are also very important for building public trust in AI.
To tackle these challenges, councils need a long-term plan for connected platforms to link all their different data sources and support AI-powered public services. This means investing in technology, infrastructure, and people.
Salesforce is welcoming local government leaders to a special Innovation event at Salesforce Tower Sydney on October 28th. To express interest in attending, visit: invite.salesforce.com/lginnovation





