Government maps out AI future for aged care with national rollout plans

Australia is preparing to integrate artificial intelligence more deeply into its aged care system as part of a broader five-year reform agenda. The move, outlined in the government’s National AI Plan and the Department of Health and Aged Care’s Aged Care Data and Digital Strategy, aims to tackle longstanding challenges such as workforce shortages, social isolation and rising demand from an ageing population.

With around 1.35 million Australians accessing some form of aged care, the vision includes AI-powered tools that could enhance quality of life while boosting efficiency.

Potential applications range from companionship robots and virtual agents to combat loneliness, to continuous behaviour and activity monitoring for early safety interventions, and apps that assess and manage pain through behavioural cues and user input. These technologies reflect global trends, where AI is increasingly being trialled to support older people in community and residential settings.

The Department is currently reviewing research, safety protocols and ethical guidelines, with plans for limited pilot programs involving up to 20 health professionals to test systems in controlled environments before any broader rollout.

This expansion aligns with the Australian Government’s broader AI strategy, which emphasises using the technology to close service gaps in health, disability and aged care, while prioritising responsible adoption. The National AI Plan, released in December 2025, and the government’s April 2026 response to the Senate Select Committee on AI highlight a commitment to building local capability, improving public services and embedding safeguards such as transparency and accountability.

Regulators, including the eSafety Commissioner, have stressed the need for strong governance to prevent privacy breaches, unintended behavioural impacts on vulnerable users, and ethical risks in unregulated deployments.

Yet, as these ambitious plans take shape, one of the sector’s earliest government-led AI applications has already drawn significant scrutiny, offering a timely reminder of the complexities involved.

Integrated Assessment Tool: An early test case

In November 2025, as part of the new Support at Home program, the government introduced the Integrated Assessment Tool. This algorithm-driven system standardises eligibility and funding decisions for home-based care by processing clinical information entered by assessors.

The goal was consistency, reducing variation across regions and ensuring fairer, more predictable outcomes for older Australians wanting to age in place.

In practice, however, the tool has faced backlash. Assessors input data, but the system’s funding decisions cannot be overridden through clinical judgement alone, even when professionals believe it under-represents a person’s needs. This is particularly concerning in cases involving progressive conditions such as dementia, motor neurone disease or chronic pain.

Since its launch, more than 800 review requests have been lodged, marking a sharp rise from previous years. Advocacy groups report a roughly 50 per cent increase in calls for help with assessments, funding reductions and rejected upgrades. Families and clinicians describe feeling sidelined, with the process shifting from collaborative discussions to algorithm-driven outcomes.

Critics, including cross-party politicians and aged care advocates, have labelled the system “Robodebt 2.0”, drawing parallels to the earlier automated welfare scheme that lacked adequate human oversight. Independent and opposition figures have called for the reinstatement of clinician override powers, arguing the rigidity prioritises budget consistency over individual circumstances.

The Department maintains that assessors play a key role in documentation and that the tool improves accuracy, with ongoing monitoring and refinements planned. Reviews remain available, although they can take time.

In a notable development, the Commonwealth Ombudsman has launched an investigation into complaints about the tool, focusing on transparency, fairness and usability. This reflects the Ombudsman’s earlier involvement in scrutinising issues linked to the original Robodebt findings.

A cautionary signal for broader AI rollout

As one of the first significant government deployments of algorithmic decision-making in aged care, the experience with the Integrated Assessment Tool is drawing attention not only for its immediate impacts but also as a potential bellwether.

The response, including widespread frustration, political pressure and an official investigation, highlights the risks when systems prioritise standardisation without sufficient flexibility for human expertise.

While the government’s broader AI strategy emphasises pilot programs, explainability and harm mitigation, this early example demonstrates that even well-intentioned tools can fall short if they restrict clinical discretion or lack transparency in decision-making.

That said, sector leaders and policymakers appear to be taking note. The Department is actively assessing safety controls and research before scaling further initiatives, and the National AI Plan commits to strengthening privacy, consumer protection and accountability frameworks.

Future pilots involving companion robots, monitoring systems and pain management applications will include health professionals in testing phases, allowing for refinement based on real-world feedback.

Balancing promise and prudence

Australia’s ageing population and increasing pressure on aged care services make innovation essential. AI has the potential to help older Australians live more independently and stay socially connected, while easing pressure on families and providers.

The challenge will be ensuring implementation keeps people at the centre, with technology supporting rather than replacing clinical judgement. This requires clear explainability, strong consent processes and the ability to respond quickly to emerging risks.

The challenges seen with the Integrated Assessment Tool do not diminish the broader potential of AI in aged care. Instead, they highlight the importance of careful, staged implementation.

As pilot programs progress and the national AI framework evolves, the focus will remain on delivering meaningful benefits for older Australians without compromising dignity, safety or trust. The coming years will test whether Australia can turn ambition into aged care that is not only more efficient, but also more compassionate.