Governments across Australia are rapidly incorporating artificial intelligence (AI) into public services to enhance operational efficiency, elevate service delivery, and meet increasing operational demands. Agencies are recognising AI as a vital strategic asset—not merely a tool—in response to mounting pressure to evolve it. Many departments continue to encounter challenges in implementation, including data governance, workforce capability, and aligning digital initiatives with overarching policy objectives, despite progress.
Public Spectrum has caught up with Dr. Shikha Sharma, Chief Information Officer, who offers a strategic viewpoint on this matter, delivering an informed perspective from within the public sector. Shikha leads with a wealth of experience from both government and private sectors, spearheading numerous digital transformation initiatives that significantly enhance service outcomes. Her insights provide a clear guide for agencies facing the challenges of integrating AI.
Shikha leverages her extensive expertise in human services, healthcare, and government to implement high-impact transformation programmes that deliver measurable results. She excels at using data, automation, and technology to tackle operational challenges, turning strategic objectives into actionable solutions with exceptional skill. She leads the cultivation of high-performing teams and enhances cross-functional capabilities, establishing herself as a pivotal figure in technology-driven public sector transformation.
“Across the public services landscape, few words spark as much curiosity and caution as artificial intelligence. Right now, we are at a pivotal moment. While many private sector industries race ahead with AI applications, the government must approach it with a deep sense of purpose, equity, and responsibility.”
1. What initially sparked your personal interest in exploring the potential of AI?
For me, my interest was never focused on technology merely for its own sake. A very human question sparked my interest in AI: How can we anticipate the needs of vulnerable people before crisis strikes? So much of government service delivery is reactive. Frontline staff are stretched, and with high caseloads, they are focused on managing immediate needs, whether that’s homelessness, domestic violence, or a breakdown in care.
AI offered a glimpse of something different: a way to analyse patterns across datasets, uncover risk signals early, and support our teams with timely, evidence-based insights. The potential to shift from intervention to prevention—that’s what drew me in.
2. What was the moment you realised AI could fundamentally transform human services?
It wasn’t a single moment; it was the growing recognition that we are sitting on a wealth of untapped insight. Across public services, frontline staff, policymakers, and support workers are making critical decisions every day, often with fragmented information and little time.
At the Department of Human Services (DHS), we have been deeply focused on building the foundations that make innovation not just possible, but sustainable and ethical. That includes overhauling our data governance practices, embedding human-centred design, and modernising core platforms.
We are implementing an AI solution that involves training AI models on policy documents to enable chat-style assistance for employees and making it easier for staff to get accurate, timely answers to common questions without having to dig through complex documents.
This work is built on the foundations we have laid through strong data governance and user-focused digital platforms. For example, our recent rebuild of the DHS intranet was not just a design refresh; it was about making information accessible, searchable, and consistent. That centralisation of knowledge is what makes AI assistance possible and valuable.
Even though we are still in the pilot phase, the potential is clear. AI isn’t just a new layer of technology. It’s a way to reimagine service delivery. It is showing us what might be possible when data, design, and human judgement come together in the right way.
3. What’s the greatest challenge organisations face in strategic AI integration?
The greatest challenge is mindset. Too often, AI is treated as a plug-and-play tool, but strategic integration requires a whole-of-organisation shift. You need aligned leadership, clear governance, ethical frameworks, and, most importantly, trust.
If frontline staff don’t trust the outputs, they won’t use them. If the community doesn’t trust how their data is used, we cannot use it. That’s why we are investing in building robust data governance, ethical oversight, and co-design processes.
4. How does the strategic integration of AI change the way we approach business transformation?
AI pushes us to think beyond process improvement. Traditionally, digital transformation in government focuses on automating manual tasks. But when you integrate AI strategically, you start designing systems that can learn, adapt, and predict.
5. How does AI factor into your strategy for continuous improvement in legacy system modernisation?
While full modernisation takes time, AI can let us extract intelligence from existing systems. For example, we are piloting natural language processing to analyse unstructured data and uncover insights that were previously invisible. We can add intelligence layers that generate value now while paving the way for smarter systems.
6. What one piece of advice would you give to organisations just starting with AI?
Start small but think big. Don’t chase shiny use cases; focus on meaningful, solvable problems. And bring your people with you. AI is a service transformation, a change management effort, and a trust-building exercise all in one.
Additionally, if your data governance needs improvement, please address that as a priority. AI is only as good as the data it’s built on. Fortunately, at DHS, we have spent years strengthening our data foundations, and that’s what gives us confidence to step into AI thoughtfully. The promise of AI in public services isn’t just speed or efficiency; it’s the ability to design a system that is smarter, fairer, and more human.
The key point is clear — AI is not a distant dream but an immediate necessity, and its successful integration relies on informed and determined actions. Public sector leaders can create significant change by promoting innovation and cultivating an environment that values data-informed decision-making.
If you are leading meaningful change, navigating digital transformation, or inspiring progress within your agency, your story matters. Join a growing network of forward-thinking professionals shaping the future of public services. Complete the Featured Leader Form to share your insights and become a voice of influence and innovation across the public sector.
Justin Lavadia is a content producer and editor at Public Spectrum with a diverse writing background spanning various niches and formats. With a wealth of experience, he brings clarity and concise communication to digital content. His expertise lies in crafting engaging content and delivering impactful narratives that resonate with readers.
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