Business & Finance
AI kept out of council finances
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Published in Business and Finance on Wednesday, October 29th 2025 at 14:44 GMT by Perth Now- 🞛 This publication is a summary or evaluation of another publication
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Perth Council Rejects Plans to Use Artificial Intelligence for Budgeting
Perth, WA – 29 October 2025 – The City of Perth has announced that it will not be adopting artificial intelligence (AI) tools to run its council budget processes in the near future. The decision follows a comprehensive review by the council’s finance committee and a public consultation that raised concerns about data security, accountability and the readiness of the city’s infrastructure to support advanced analytics.
A cautious approach to technology
Councilors and senior staff emphasized that while AI can offer powerful analytical capabilities, the current stage of Perth’s budgeting systems is not prepared for a fully automated, data‑driven approach. “Our primary focus remains on transparency and public trust,” said Deputy Mayor and Finance Committee Chair, Sarah McKenzie. “We cannot risk automating critical decisions without a clear audit trail and robust safeguards.”
The council’s Finance Committee presented a detailed report to the council on 18 September, summarizing findings from a two‑month internal audit and a series of workshops with IT specialists. The report concluded that the existing budget data were fragmented across multiple legacy systems, making it difficult to feed consistent, high‑quality data into an AI model. Moreover, the committee highlighted that the council’s current cybersecurity protocols do not meet the stringent requirements needed to protect sensitive financial data in an AI environment.
Stakeholder feedback and public concerns
The public consultation, which ran from 1 August to 15 August, attracted 1,200 responses from residents, businesses, and community groups. A key theme emerged: a desire for greater clarity around how AI decisions would be made and how they could be challenged. Many respondents also expressed concerns about the potential for bias in algorithmic models that could disproportionately impact certain neighbourhoods or demographic groups.
“AI isn’t a silver bullet,” said councilor James Whitaker, who represents the North Perth ward. “We need to be sure that any system we adopt is fair, auditable, and aligned with our community’s values.”
In addition to public input, the council engaged with local universities, including the University of Western Australia (UWA) and the Western Australian Institute of Technology (WAIT), to assess the feasibility of developing an AI budgeting platform. The experts from UWA’s School of Computer Science confirmed that while prototype models exist, the complexity of the council’s budgeting cycles and the need for real‑time data feeds present significant hurdles.
Comparison with other Australian councils
The council’s stance stands in contrast to a handful of other Australian cities that are exploring AI for municipal finance. In Melbourne, the City of Yarra announced a pilot program to use machine learning for forecasting revenue trends. Meanwhile, the City of Adelaide is working with the state government on a statewide AI framework for local government finance. Perth’s decision has been praised by some advocacy groups who see it as a prudent step, but critics argue that delaying adoption could put the city at a competitive disadvantage.
“We’re not refusing technology,” said Mayor Alex Reynolds. “We’re simply ensuring that any technology we deploy serves the public interest and can withstand scrutiny. The timeline for AI adoption remains open, but it’s not a priority at this time.”
Future plans and next steps
The council will continue to monitor developments in AI technology and related regulatory frameworks. The Finance Committee has tasked its IT Subcommittee to produce a roadmap for upgrading the city’s financial systems, focusing on data integration, cybersecurity, and staff training. Once these foundations are in place, the council will revisit the possibility of AI integration.
Councilor McKenzie added that the council is exploring alternative technology solutions, such as advanced data analytics dashboards and predictive modelling tools that can provide decision support without fully automating the budgeting process. “These tools can still give us deeper insights into our financial health while keeping the final decision-making human,” she said.
The City of Perth’s decision to postpone AI in budgeting highlights a broader debate among Australian local governments about balancing innovation with accountability. As AI continues to advance, Perth’s leadership in maintaining rigorous oversight may serve as a model for other councils navigating the complex intersection of technology, finance and public service.
Read the Full Perth Now Article at:
[ https://www.perthnow.com.au/news/no-plans-for-artificial-intelligence-to-run-council-budgets-c-20445003 ]
