Artificial Intelligence
AI Future Skills Study Places Australia in 2nd Position
A new study, analyzing AI preparedness in 89 countries, has placed Australia in 2nd position with the U.S. in 1st position. The study also noted that Australia, with an accelerated and reskilled workforce and improved collaborations between universities and industries, would benefit from the AI-induced economy.
Australia is second in the world in terms of digital government capability and AI readiness, according to an OECD evaluation of the ways governments are utilising technology, handling data and preparing public institutions for new digital tools.
The findings are based on OECD's 2025 Digital Government Index and 2025 Open, Useful and Re-usable Data Index, which track the extent to which countries use digital systems in public services and public decision making.
Government AI and digital capability recognised
Australia's digital governance was noted with the lead of the Digital Transformation Agency and the assistance of the Data and Digital Government Strategy. It pointed out that government agencies have started to take a coordinated approach to the development of digital policy, with the establishment of cross-government digital policy oversight bodies and sets of digital policy standards.
Australia was also named as a high-performing country in the adoption and supervision of AI in the public sector.
The OECD highlighted the following measures taken in line with the Policy for the Responsible Use of AI in Government and the AI Plan for the Australian Public Service, which offer guidance on the deployment and oversight of AI systems.
The evaluation also highlighted the work that has been done to increase digital skills in Government. Initiatives to staff in-house with data, digital and cyber capability staff have helped firms create an internal talent pool of around 20,000 public sector staff, which has helped diminish the need for outsourcing certain technology roles.
Transparency and funding gaps remain
The OECD noted that there are opportunities for additional improvement even with this high ranking.
A lack of a public register of algorithms and AI systems used in government decision-making was one worry. The report says that increased transparency will help to provide increased public visibility of the use of automated systems in government services.
The OECD also pointed out that Australia has procedures for the assessment and monitoring of digital projects, but does not have a separate federal funding stream for digital and ICT projects.
It found that Australia has many of the structures it needs in place for digital transformation in government. It said, however, sustained focus on transparency, skills building and government, industry and educational institution coordination will be key as AI usage grows.
Source: OECD's 2025 Digital Government Index
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