28 July, 2025
paterson-urges-government-to-embrace-ai-cautions-against-union-restrictions

Opposition finance spokesman James Paterson has called on the Australian government to embrace the potential of artificial intelligence (AI) within the public service. Speaking in Canberra on March 15, 2024, Paterson emphasized that business must play a role in service delivery and cautioned against yielding to union pressures that could hinder technological advancement.

Paterson’s comments come as he reflects on the Coalition’s previous pledge to significantly reduce the size of the public service. He acknowledged the missteps of his party, admitting that the Coalition “did not get the tone right” during the last election. In his speech, he recognized that proposals to cut the Australian Public Service (APS) and alter remote work entitlements were met with strong backlash from the public.

In a clear message against union interference, Paterson stated, “Inserting unions between business and technologies like AI will only serve as a handbrake on its adoption in Australia.” He warned that the government must not allow union demands to dictate the pace of AI implementation, stressing the importance of a collaborative approach.

Paterson Advocates for AI Leadership in Public Service

Paterson’s remarks align with the ongoing debate within the government about the role of AI in enhancing productivity. He pointed to conflicting messages from key figures such as Industry Minister Tim Ayres and Assistant Minister for Productivity regarding the incorporation of AI technologies. While both ministers advocate for a light touch in regulation, Paterson expressed his intention to support the position of Andrew Leigh, who is keen on the public service leading the charge in AI adoption.

The Coalition’s finance spokesman also made it clear that the party would hold the government accountable for its performance against measurable outcomes, including regulatory repeals and productivity increases. He stated, “We will be judging the productivity and tax summit on the concrete ideas which emerge to facilitate this.” Paterson warned against the possibility of the government’s economic reform roundtable becoming a mechanism for stifling productivity through overregulation.

Paterson reiterated the Coalition’s commitment to limited government while acknowledging the need for efficiency within the APS. He remarked, “We expect the APS to be efficient and respectful of taxpayers’ money.” While he did not retract the Coalition’s policy positions, he indicated that all policies are under review, with an eye toward ensuring that government remains no larger than necessary to meet public expectations.

Contrasting Views on Public Service Delivery

In his address, Paterson also criticized the Labor Party’s “public service first” approach, suggesting that it overlooks the value of using contractors and consultants when appropriate. “If a job needs to be done, it should be done by the person best placed to do so,” he explained, asserting that flexibility is essential for effective service delivery.

The summit also featured remarks from Andrew Leigh, who highlighted his commitment to using randomized trials to improve government services. Leigh noted that these trials have already saved significant time and resources, stating, “As the evidence base grows, we can use synthesis—not just individual findings, but aggregated knowledge—to guide the way forward.”

As the conversation around AI and productivity continues, Paterson’s call for a balanced approach underscores the ongoing tensions between technological innovation and traditional labor protections in Australia.