National

Canberra embraces AI data crunch for medicines to tax

May 13, 2026

The federal government on Tuesday unveiled a long list of AI trials in its budget. -AAP Image

Artificial intelligence will be deployed across the federal government for everything from evaluating medicines to identifying tax fraud in a bid to boost the nation's productivity.

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A long list of AI trials were named in the federal budget on Tuesday for agencies ranging from Veterans' Affairs to the National Library, with some programs expected to save hundreds of millions of dollars.

The government also revealed plans to create a $70 million AI Accelerator program to boost research into the technology.

The announcements come days after the government launched an AI online resource to help businesses, and after it released its national plan for the burgeoning technology with a focus on building domestic capability and infrastructure.

Funding for an AI Accelerator will be delivered through the Co-operative Research Centre program, the budget revealed, with grants awarded to projects in 2026 and 2027.

The technology is tipped to add at least $116 billion in economic growth over the next decade, according to the Productivity Commission, and 4.3 per cent to productivity levels.

The government would also deploy the technology in multiple departments, Treasurer Jim Chalmers said, to make them "more efficient".

The Therapeutic Goods Administration, for example, will use AI to evaluate medicines approved for use by similar regulators overseas.

If successful, the project is expected to save $340 million a year in administrative costs and time savings.

AI tools are already being used by the Australian Taxation Office to identify and correct potential errors in its myTax program in real-time.

The new initiatives will allow the National Environmental Protection Agency to speed up project approvals, while the National Library of Australia will use AI to transcribe 58,000 hours of audio from its oral history collection.

Veterans' Affairs will also use AI to process information from large compensation claims, although budget papers noted the trial would be voluntary and require the consent of claimants.

The trials will come as the government establishes agencies to regulate artificial intelligence technology, including the AI Safety Institute, Copyright and Artificial Intelligence Reference Group, and the AI Employment and Workplaces Forum.