Microsoft backs government AI plan, cloud policy refresh
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More news: Microsoft has thrown its support behind the federal government’s public sector AI plan and the impending release of a new whole-of-government cloud policy in December.
Microsoft Australia general manager, public sector Vivek Puthucode said the plan is “an important step towards a modern, citizen-focused public service".
"AI, when applied responsibly, can help improve service delivery, strengthen policy outcomes and make government more responsive to community needs," he said.
A six-month trial of Microsoft’s AI assistant Copilot was previously run across the Australian Public Service between 2023 and 2024, with 64% of managers perceiving team quality and efficiency gains.
The value of Microsoft’s whole government volume sourcing agreement was worth $1.2 billion as of 27 June, according to IT News.
“We hope the APS AI Plan will deepen collaboration across the public and private sectors to create a smarter, more efficient and future-ready public service that delivers inclusive and productive outcomes for all Australians,” Puthucode said.
Puthcode said the upcoming whole-of-government cloud policy “is particularly encouraging”. He flagged recent Microsoft-commissioned research by Mandala Partners “that accelerated cloud migration could drive public sector productivity and save $13.5 billion over the next decade, including $178 million in cybersecurity-related costs”.
The new cloud policy will guide agencies to accelerate cloud uptake in compliance with protective security standards and improved workforce capability, according to the government AI plan.
All government agencies to appoint chief AI officers under new plan
The news: Every Australian public service agency and department will be expected to appoint a senior executive as a chief AI officer by the end of 2026 under a new whole of government AI plan.
The plan also includes the development of GovAI chat, release of a new whole-of-government cloud policy in December, establishment of an AI delivery and enablement team to coordinate adoption and formation of an AI review committee to advise on high risk use cases.
The context: The government is aiming to “improve service delivery, policy outcomes, efficiency and productivity by substantially increasing the safe and responsible use of AI in government”, according to the AI plan.
The plan's 15 targets are based on an 18-month time frame, aligning either with milestone of July 2026 or July 2026 onwards. The targets are split across three themes: trust, people and tools.
In particular, the government aims for every public servant to have access to secure generative AI through the GovAI platform.
GovAI provides a purpose-built hosting environment that creates a sandbox for safe experimentation and enables secure use of government data. It also provides training resources and a library of use cases being deployed across government.
A beta trial for GovAI chat, a purpose built AI assistant, will be rolled out from mid-2026.
Responsibilities of the chief AI officers may include “leading internal engagement, sharing guidance and use cases, providing contestable advice, and overseeing Al adoption, experimentation, and innovation”.
What they said: "AI adoption across the APS is not about replacing people. It’s about unlocking new capabilities while ensuring our people are focused on the work that requires human insight, empathy, and judgment," Minister for the Public Service Katy Gallagher said.
"We’re imagining a public service that doesn’t just respond to people’s needs, but anticipates them, working seamlessly around their busy lives. The APS AI Plan is built on the strong foundations of APS reform and reflects the values of a public service committed to integrity, transparency."
The sources: AI Plan for the Australian Public Service, Microsoft Australia statement
