Navigating the Future: AI, Technology, and Cyber Security in Local Government

Most CEOs believe that AI and other emerging technologies are years away from impacting their council’s way of working, but cyber security is of greater and more immediate concern.

In the evolving landscape of local government, the integration of Artificial Intelligence (AI) and technology holds significant promise. However, as revealed in the 2024 Australian Local Government CEO Index, many local government leaders view these advancements as distant prospects rather than immediate priorities.

A person is touching a robotic arm with their finger.

Current State of AI and Technology

Despite the growing conversation around AI and technology, most local government CEOs believe these innovations are still years away from making a substantial impact. According to the Index, 80% of CEOs expect the effects of AI to be felt in five or more years. Furthermore, only 2% of CEOs feel their organisations are utilising AI very effectively, and half (51%) believe their councils are not prepared for the AI revolution. The cautious approach to emerging technologies is reflected in current priorities: AI ranks seventh on the national priority list for technology, significantly behind cyber security and digital transformation.


Moreover, there is a noticeable reluctance to share technology services among councils. Only 16% of councils currently engage in sharing technology services, while a substantial majority (84%) do not. In contrast, councils are more open to sharing non-technology services.


The lack of immediate engagement with AI and technology reflects a broader issue of preparedness. The majority of councils do not feel confident in their readiness for AI, and many are still grappling with fundamental technology issues like security architecture and data planning.

Cyber Security: Immediate Concerns and Challenges

Cyber security has emerged as a top concern for local governments, ranking fourth overall among all priorities. This heightened focus underscores an urgent need to protect systems and data from increasing threats.



As highlighted in the Index 2024, 23% of CEOs report that cyber threats keep them awake at night, with states like NSW, VIC, and QLD placing cyber security among their top priorities. However, councils in SA and TAS are generally less concerned about cyber security, with CEOs in these states ranking it their 10th and 12th highest national priority respectively.

Future Outlook

Looking ahead, the trajectory of AI and technology in local government will be significantly influenced by advancements in digital infrastructure and data analytics. Local governments must navigate these changes carefully, balancing innovative technologies with a strong emphasis on foundational elements like security and network infrastructure.


While AI and emerging technologies are anticipated to make an impact in the years to come, cyber security remains an immediate and pressing concern. Strengthening security measures is essential to protect systems and data in the short term and ensure a secure foundation for future technological advancements.

Discover more insights from over 170 local government CEOs. Download your copy here.

Share this content

LG Innovate 2025 - National AI Summit for Local Government banner
by Marketing Davidson 20 July 2025
We’re pleased to share that we’ve extended the early bird registration deadline for the LG Innovate National AI Summit by one week – now closing COB Friday 25 July 2025 .
A robotic hand is holding a pill in front of a brain.
by Marketing Davidson 14 July 2025
With artificial intelligence reshaping the way governments operate, the 2025 LG Innovate National AI Summit is your opportunity to stay ahead of the curve.
A man in a suit and tie is shaking hands with another man.
by Marketing Davidson 28 May 2025
Davidson Technology Consulting is proud to welcome Rohan Morrison and Maciek Kiernikowski, who join us as key leaders in our Financial Services team.