The agency responsible for Medicare, child support and unemployment benefits has revealed plans for a fresh assault on fraud by individuals and organised criminals, by using AI as part of the federal government’s effort to cut spending waste and lift the economy’s speed limit.

Just days after the government agreed to the largest class action settlement in Australian history over the robo-debt data-matching system , department heads from agencies including Services Australia have confirmed they believe major budget savings could be made through greater use of AI and digital automation across key parts of the bureaucracy.

Before last month’s economic roundtable, Treasurer Jim Chalmers and Finance Minister Katy Gallagher sought ideas for cutting red tape and lifting productivity from 38 a

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