Assessing Local Government Sector Readiness for AI Adoption

Challenge

As the independent, member-based, not-for-profit organisation representing the Western Australian Local Government Sector, WALGA is committed to empowering WA’s 139 Local Governments to confidently and effectively adopt AI. With the rapid pace of AI advancements, coupled with varying levels of readiness, knowledge gaps, and cyber security concerns, the Sector faces significant challenges in adopting AI safely and strategically. This AI readiness assessment project engaged both Sector and WALGA stakeholders, employing a blend of quantitative and qualitative research methods to gain a holistic understanding of AI readiness, maturity, key barriers, opportunities, and potential use cases for AI adoption.

Approach

Assessing the sector’s AI maturity across six domains

108 Western Australian Local Governments participated in a Sector-wide assessment to gauge AI readiness, understand AI perceptions and barriers, and identify valuable AI use cases and opportunities. The quantitative and qualitative results were derived through a variety of activities involving the Sector and a selection of diverse 12 Local Governments.

The AI readiness assessment process was underpinned by four key activities:

1. AI Briefings: The Strategy Group facilitated multiple forums with Local Governments and WALGA representatives to build awareness and education around AI technologies, the AI Readiness Assessment process, and manage expectations, risks and concerns

2. AI Readiness Survey: 139 Local Governments were invited to complete an AI Readiness Assessment to:

• Evaluate their current AI implementation status across six key readiness dimensions and 43 underpinning indicators.

• Uncover current-state perceptions and future needs for AI adoption.

3. AI Readiness Interviews: The Strategy Group conducted semi-structured, in-depth interviews with a sample of 12 representative Local Governments focused on a deeper assessment of AI attitudes, governance and supporting infrastructure as well as identifying barriers and enablers to AI adoption.

4. AI Readiness Working Sessions: The 12 Local Governments participated in a co-design workshop to discuss AI risks, share AI use cases and define opportunities for AI adoption.

Outcomes

Delivering a Sector-wide and WALGA AI Readiness Strategy

Following the AI Readiness Assessment, a comprehensive synthesis was conducted to provide WALGA with a holistic view of AI Readiness, barriers and opportunities for AI adoption that would inform tailored and specific services to inform targeted, practical support for organisations at every state of their AI journey. The final deliverables included:

• Sector AI Readiness Assessment Report: A detailed analysis of assessment findings, including adoption drivers and barriers, priority improvement areas, and sector-wide recommendations

• WALGA AI Readiness Strategy: A practical strategy outlining critical gaps, priority initiatives, and a phased roadmap to strengthen AI readiness across the sector.

• Sector AI Readiness Briefings: A series of WALGA-hosted briefings to socialise findings, build momentum, and support uptake of recommended initiatives and capability-building opportunities.