# Australian Government Negotiates Public-Sector AI Safeguards

Australia’s Community and Public Sector Union and the federal Public Service Commission remain deadlocked over safeguards for AI use in public-service employment. Any agreement is expected to set a three-year baseline for a workforce of 196,000, making the negotiations a policy and market signal for contractors supporting government AI adoption rather than a current solicitation.

- If an agreement is reached, its approach to human oversight, responsible AI use, workforce reskilling, and employee protections could shape expectations for government AI systems and related services.
- Contractors developing or implementing AI for public agencies should account for these workforce and governance considerations in solution design and delivery plans; the signals do not identify a specific procurement or compliance deadline.
- The discussion of using AI to address staffing and productivity pressures indicates that agencies may weigh workforce impacts alongside potential efficiency gains when evaluating AI initiatives.

**Jurisdictions:** international
**Industries:** Information Technology
**Topics:** Artificial Intelligence
**Published:** November 01, 2026

### Government Entities
- Public Service Commission
- Services Australia
- Commonwealth Ombudsman

### Key Quotes
> One of the big areas you’re going to need a productivity increase in is government, and the way you’re going to do that is utilization of such things as AI, so that when people retire — not sacking them — when they retire, you to the very best of your ability try to fill in a lot of those jobs with something that that is cheaper and works 24/7.
> — Barnaby Joyce, Member of Parliament

> There’s no doubt there will be jobs displaced, but there will be jobs created as well.
> — Victor Dominello, Former NSW Digital Government Minister

### Sources
- [Australian public servants demand AI safeguards as politicians eye staff savings - POLITICO](https://www.politico.com/news/2026/11/01/ai-talks-with-public-servants-deadlocked-as-australian-politicians-look-for-government-savings-01142034) - Politico