This report provides insights from a CPA Australia webinar on AI governance in the public sector, held on 22nd May 2025, highlighting both the benefits and risks of AI adoption. While AI presents opportunities to increase public value, improve service delivery, and support policymaking, these benefits come with risks. To realise the full potential of AI while safeguarding public trust, the public sector must invest in robust governance frameworks, develop AI literacy amongst staff and reinforce the critical role of professional judgment. 

The webinar examined the practical realities facing public institutions and included polling questions on:

• AI tools currently used in public sector workplaces
• the impact of AI on daily work
• public-sector specific applications of AI
• AI governance frameworks
• AI risks and strategies for mitigation.

Recommendations

• Public sector organisations should prioritise the development, implementation and communication of clear governance policies.
• By modelling best practice with AI tools, leaders can shape norms that uphold ethical standards.
• Policymakers should consider establishing a public sector AI governance framework that sets minimum standards and provides shared tools, resources and guidance for compliance and education.
• Empowering public sector employees to build their understanding of AI. This involves providing training, access to approved tools, and channels for feedback and learning.