Tasmania’s tech sector has urged the Tasmanian Government to launch an Artificial Intelligence program across the public service to seize opportunities and save money – or risk falling behind in the tech race.
The peak body for the technology sector in Tasmania, TasICT, said the State Government had no clear direction when it came to implementing the benefits of AI in Tasmania, and yet needed to act quickly.
Releasing TasICT’s Budget submission, CEO Russell Kelly said that TasICT estimated that on available studies and evidence from other governments, the cost of not adopting advanced AI across the public service could amount to more than $20m. a year in lost productivity savings.
“Using AI is a way of making public service work more productive and saving money at a time when the State needs every cent it can get.
“Tasmania must hit the go button. Tasmania is again watching the rest of Australia streak ahead while we struggle in the tech slow lane.”
Mr Kelly said that despite mounting evidence of AI’s transformative potential across government, industry, and community sectors, the most recent budget did not include a plan for whole-of-government tech transformation.
This omission comes as other states accelerate their AI investments—South Australia has appointed an Assistant Minister for AI and committed substantial funding, while Victoria and New South Wales have launched targeted programs to support AI research and deployment.
Just last week the Federal Government released a National AI Plan, recognising the technology was moving so quickly specific legislation to govern its use was nearly impossible to implement.
State budget consultation for 2026-2027 closes today. In its submission, TasICT calls for a pragmatic $5m. allocation to an AI rollout in Tasmania, to unlock a potential $20m. annually in savings.
There are also substantial opportunity costs by not acting quickly on AI. Mr Kelly said the sector’s budget focus was on industry development, securing connectivity and computing power, and workforce development.