Gov backs its own AI adoption with $225m
The government is putting serious money behind its own AI use. MYEFO commits $225 million over four years, with most of it flowing through GovAI - a sovereign-hosted AI platform, training, and enablement for whole-of-government.
The aim is simple: secure, on-device access to generative AI for public servants, guardrailed by central governance and capability building.
What's funded (at a glance)
- $225.2m for GovAI overall.
- $166.4m in the first three years to expand the platform and design, build and pilot a secure AI assistant: GovAI Chat.
- $28.5m upfront to Finance and the DTA for initial work and assurance, with a further $137.9m gated by a business case and a mid-pilot assessment.
- $28.9m over four years from FY2025-26 for Finance to stand up a central AI delivery and enablement function.
- $22.1m over four years (plus $0.4m ongoing annually) to the APSC and DTA for foundational AI capability building and coordinated workforce planning.
- $7.7m over four years for the DTA to strengthen AI functions and establish an AI review committee for high-risk use cases.
Inside GovAI
GovAI is positioned as a sovereign-hosted service for whole-of-government use. It combines a core platform with training, enablement, and a pilot of GovAI Chat - a secure assistant accessible from government laptops.
Expect staged rollouts. Funding is gated by milestones, so delivery teams will need to validate value early to unlock the next tranche.
Governance and oversight
The DTA will establish an AI review committee to advise on high-risk government use cases, drawing members from across the APS. This should give agencies a central path for assurance on sensitive deployments.
Each department and agency must appoint an executive-level AI overseer (chief AI officer equivalent) by mid-2026. Most entities plan to add the responsibility to an existing role; a few will recruit a dedicated lead.
Workforce and capability
The APSC and DTA funding targets the foundations: capability building, job design, skills, and mobility as AI shifts the work. This is your cue to budget for training and update workforce plans early.
If you need structured options to stand up training by role, see AI courses by job here.
Outside GovAI: AI Safety Institute
MYEFO also sets aside just under $30m a year for the next four years, and $7.9m a year from 2029-30, to establish an AI Safety Institute within the Department of Industry, Science and Resources. The institute will work with regulators from next year to shape settings so industry can adopt AI with clearer guardrails.
What this means for agencies
- Nominate your AI overseer now and formalise responsibilities ahead of mid-2026.
- Line up pilots that prove value quickly for your core services - think case handling, summarisation, search, and internal knowledge.
- Run a data readiness check: access controls, sensitivity tags, retention, and audit trails.
- Strengthen risk controls: model use policy, human-in-the-loop, content safety, and incident response.
- Budget for training by role and level; prioritise prompt use, verification, privacy, and record-keeping.
- Engage early with the DTA review committee for high-risk or high-impact use cases.
Timeline and checkpoints
Initial work and assurance funding is available now for Finance and the DTA. A mid-pilot assessment and a full business case will gate the release of the larger funding tranche.
Agencies should prepare use cases and capability plans that align with GovAI's pilot windows. Early adopters will shape standards and tooling for everyone else.
Useful references
- MYEFO landing page: budget.gov.au
- Department of Industry, Science and Resources: industry.gov.au
The signal is clear: baseline access to secure generative AI across the APS, with central guardrails and skills to match. Start small, prove utility, and build the muscle in your teams now.
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