Artificial intelligence (AI) has the potential to transform local government. From back-office functions through to frontline service delivery, AI can drive significant efficiencies, improve productivity, and support better outcomes for communities.

At the same time, this new frontier introduces novel and complex legal and governance risks, and our innate human ability to spot danger on the horizon and carefully navigate it is more important than ever.

To better understand this new terrain, Maddocks surveyed local government officers across Victoria to explore how councils are using AI, the opportunities they see, the risks they are managing, and the support they need to move forward confidently. The result is Bridging the Gap: AI risk and governance in local government – a practical report that combines sector-wide survey findings with analysis, guidance and recommendations for councils on how to navigate this rapidly evolving landscape.

What the survey shows 

The survey findings showed that council officers are experimenting with AI and exploring how it can support their everyday work. However, many are doing so while unsure of their council’s AI governance frameworks, strategic direction, or compliance requirements. This has created a growing gap between AI use and AI governance, and points to a clear and urgent message: AI is already in use at councils, but without the governance or strategic alignment needed to leverage it fully and compliantly.

What the report does 

The report is intended to provide practical, legally-informed support to councils to tackle this challenge and reduce their risk. It breaks down each survey question into three sections: what did councils say, what does this tell us, and what should councils do with this information, providing clear analysis and advice on areas such as governance, challenges, opportunities, and risk.

The report also spotlights areas that councils should pay particular attention to, with specific guidance on –

• key legal risks and how to mitigate them
• a framework for AI adoption
• key considerations for governance frameworks
• legal supports to drive confident and compliant AI adoption and usage.