Victorian councils lag on AI governance frameworks

A report released by law firm Maddocks surveyed more than 300 officers across 75 local government councils in Victoria. It found that roughly two‑thirds of the councils have incomplete or no formal AI strategy or governance framework, even as AI use expands for everyday tasks such as customer service, data integration, decision support and planning.

Seventy‑four percent of respondents see customer service as the biggest AI opportunity, but they also flag legal and operational risks including privacy and data protection, accountability for automated decisions, bias, lack of transparency and procurement compliance. Officers expressed a strong desire for a central source of guidance, practical training and governance support.

Kate Oliver, Partner and Victorian Local Government Sector Leader at Maddocks, said, "The message from the survey is clear: AI is already here, and councils are using it. The challenge is that governance is an area struggling to keep up with the pace of adoption." The report recommends councils develop clear AI strategies, establish governance frameworks, implement training programmes, strengthen procurement oversight and improve internal communication to ensure responsible and trusted AI deployment.