Twelve months has always been a long time in technology circles. If the signs of collective momentum around digital transformation across states and territories were apparent in last year’s State of IT, they’re on show in a big way in 2023. New and refreshed digital strategies abound, backed in many cases with hundreds of millions of dollars in fresh funding. 

However, there are also signs of a ‘changing of the guard’. Traditional digital powerhouse states are undergoing leadership and executive sponsorship renewal, and with that some forward funding uncertainty. Meanwhile, others have finally found their digital footing and are forging ahead with ambitious programs of work and an appetite for innovation. 

This contrast is particularly apparent in emerging technology areas such as generative AI and large language model (LLM) experimentation. In less than a year, AI has taken the enterprise and consumer markets by storm, and governments are also looking at how they - and their constituents - might benefit. That has produced a real mix of responses, from embracing experimentation to - at the federal level - some outright bans on usage. 

State of IT 2023 provides a cross-state and territory view of generative AI treatment, and the results may surprise. Two states, in particular, have emerged as clear leaders, with specific guidance and safe spaces for experimentation. It would not be surprising to see them play a greater role in national AI guideline discussions currently underway. 

A key change you may notice in this year’s State of IT is a greater emphasis on ICT, in addition to digital aspects of government operations.  

Digital discussions often focus on front- and citizen-facing online experiences. Underpinning these experiences, however, is a growing array of platform services that can be accessed by digital teams via marketplaces or service catalogues. In addition, there is an internally-facing aspect of ICT that can get forgotten in all the discussions about digital: the hardware and software given to public servants. So, State of IT 2023 is as much about ICT as the digital experiences that ICT enables. 

Finally, we have dispensed this year with the ‘school-grade’ style scoring seen in previous iterations. This report is prepared against a backdrop of increased cooperation between federal, state and territory governments, and of increasingly collegiate relationships between their respective CIOs and digital leaders. They meet regularly, exchange best-practices and lessons learned. While elements of (healthy) competition remain, the collaborative dynamic that’s emerged is perhaps better understood by deep-diving and comparing strategy and execution, rather than through the pursuit of an annual virtual ‘bake-off’ format.