Report: Insights from the second national survey on public sector attitudes, readiness and next steps for AI in government

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The AI adoption starting line has been crossed. The question now is what’s possible on the other side.

In the space of 12 months, use of AI across Australia’s public sector has gone from something under half of public servants could even point to, to something four in five now use in their work. That’s a key finding in Liquid and The Mandarin’s Let’s get real about AI – 2026 research report, published today, drawing on lived experience and perspectives of public servants around the country, across all levels and functions of government.

Download the report.

Last year, the story was about potential: a workforce ready to get real about AI, evident in more than 90% of surveyed public servants identifying the technology as a much hoped-for solution to some of the biggest challenges that impact good government and social outcomes.

But they felt constrained by unclear ownership, rigid processes and low organisational confidence, exposing a quantifiable divide between ready individuals and uncertain organisations.

In 2025, less than half of 600 respondents said their organisations were equipped to support adoption; another 25% reported stalled progress due to internal blockers; and only 47% were even aware of AI being used in their workplace. 

Fast forward one year and the AI readiness divide has narrowed, driven by increased access to and use of AI tools. Of close to 700 respondents, 94% now have access; 83% use AI tools at work; and 40% use them “every day”.

But the tools that arrived are still predominantly general-purpose GenAI chat tools (Copilot, ChatGPT and Gemini); and use is primarily being applied to individual productivity tasks, rather than to core service delivery challenges.

And a new divide has emerged.

Download the full report to learn more.

Discover all the insights, including a clear verdict on leadership direction and impact of training; biggest barriers and opportunities to meaningful AI implementation; use cases; tools accessed or restricted; trust in AI outputs; most frequent users and those who don’t use the technology at all; and why mid-level staff may be “the outliers”.

About the annual research initiative

Now in its second year, the Let’s get real about AI survey series forms the cornerstone of human-centred research into how AI is viewed and increasingly used across Australia’s public sector through a whole-of-government lens.

What started as a first-of-its-kind benchmarking exercise to cut through the hype has become an important, annual indicator for behavioural, operational and cultural change in the age of AI.

More than just a snapshot in time, the research initiative, and ongoing collaboration between Liquid and The Mandarin, is intended to help public sector leaders and teams navigate complexity and rethink how government works and what it can become when people, policy and technology come together around a common purpose to transform services that millions of Australians rely on every day.

Through an open, opt-in process promoted across multiple channels during May to June 2026, 694 participants shared their perspectives, hopes, fears, frustrations, and early achievements.

How we approached it

Our approach remains the same. Not to gauge abstract sentiment, but to understand what public servants are facing on the ground, ensuring the spotlight stays on the problems that matter, followed by the technology, tools, and platforms implemented to solve them.

Importantly, the research avoids asking if AI is “good” or “bad”. The focus lies on where and why AI is gaining traction as a technology, what barriers and opportunities are being encountered, and how public servants themselves want to progress.

It’s an approach designed to help organisations move through uncertainty and stop asking “How can we control this?” to “Where are the opportunities to help us better deliver on our core mission?”.

Ultimately, it’s about helping leaders and teams reimagine a future destination or north star: moving from a reactive approach of “What kind of organisation do we need to become?” to a proactive approach of “What kind of organisation do we want to become?”.

Where to next?

If your organisation is exploring AI strategy, digital delivery or system reform, we’d love to work with you.

Start a conversation.

Report: Insights from the second national survey on public sector attitudes, readiness and next steps for AI in government

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