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Despite forecast savings, Victoria's debt is expected to sit at 24.9% of its total product for 2028-29, starting from $167.7 billion in 2026 as the government pursues a vast capital work agenda.
Symes did not provide details about government plans to use AI, but budget documents reveal that they have spent $11.1 million over four years starting the “regulatory digitalization and AI program.”
The program will focus on the exchange of paper-based or outdated digital processes that streamline licensing and other regulatory approvals.
The switch to automation has already seen a significant increase in the handling of solar rebates and utility relief subsidies, according to budget documents.
The government also allocated $3 million to the pilot program, using AI to improve TAFE students' perceptions of previous learning, helping skilled workers bypass unnecessary training and quickly tracking courses.
The funding comes after Labour MPs from Narre Warren South Gary Maas announced their new “AI Assistant” last year. The chatbot is tailored to general questions and personalised to voters in Nare Warren South.
Similarly, state revenue offices use chatbots that can answer general questions and basic information about how to access services.
The office also deployed AI to chase unpaid taxes and detect fraud by identifying data patterns or anomalies.
The treasurer's office was contacted for comment, but the spokesman did not respond to questions asking about the move to automation and the number of jobs that could be replaced by technology, or the specific savings that could be requested for details on the proposed AI program.
A spokesperson said the government is working on digital transformation and innovation as well as the safe and responsible use of AI.
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The Victorian Council is also turning to AI to improve the planning application and make it easier for residents to navigate.
MyLot is designed to help people navigate the planning system and get quick answers on whether a permit is required and whether an application is likely to be approved.
The program will be introduced at Yarrarange Council, Bayside Council, and Mornington Peninsula Shire Council, and later launched at Borondara and Mooney Valley City Council.
Community and public sector unions have warned the government against using AI as a tool to reduce costs and employment, saying it should only be used to enhance the work of civil servants.
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Secretary Karen Butt said the government was not involved in discussions with the unions about its potential impact on AI's employment and its role in driving efficiency.
“CPSU encourages governments to provide AI and the increased productivity that AI can provide, not as a way to reduce the workforce while maintaining the same level of service, but as a way to raise the level of service they provide while retaining spending at existing levels,” she said.
“We raised concerns about the use of AI and the training provided to our staff.”
Last year, Victorian intelligence commissioners ordered the family, fairness, and housing departments, and many other AI websites to be banned after it was discovered that workers used the tool to draft child protection application reports after entering highly sensitive information in private.
A survey by the Intelligence Committee found that ChatGPT is widely used within the department despite the lack of specific training or guidance that generate AI is provided.
The state government has announced its policy on the safe use of AI at Victoria Public Services in November. This included the requirement that only publicly available information could be uploaded to a publicly available generation AI tool.
Victoria also registered in the federal framework for AI guarantees in the government last June. It aims to create a nationally consistent approach by federal, state and territorial governments.
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