In the days since an artificial intelligence (AI) agent operated by OpenAI gained unauthorised access to a Services Australia portal holding Medicare statistics, important questions have been raised about Australia's readiness to prevent future breaches.

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Specifically, concerns have been raised about whether Australia is particularly vulnerable to autonomous AI agents because so much of our digital infrastructure depends on outdated or "legacy" software.

The answer is more complicated than simply blaming the legacy systems.

In 2025, the Australian Signals Directorate reported that 59 per cent of Australian government entities reported that legacy technologies were impacting their ability to implement key cyber security controls.

Legacy technology generally refers to older hardware or software that is no longer supported by its manufacturer, cannot be adequately updated or patched, or cannot meet current security requirements.

The persistence of these outdated systems is not just a technical problem. As a recent report from the Australian Strategic Policy Institute argued, the underlying problems are often about governance. The key questions relate to who is responsible for replacing the systems, how to fund replacements and whether viable replacements actually exist.

Australia's situation is hardly unique. The UK government estimates around 28 per cent of its central government systems use legacy technology. In the US, a 2025 government review identified 11 critical federal legacy systems - up to 60 years old - supporting functions including healthcare, critical infrastructure, tax processing and national security.

So, legacy technology is an important part of the equation. But other factors also shape Australia's exposure to AI-boosted cyber risk.

Why Australia remains an attractive target

The Australian Cyber Security Centre reports cyber criminals target Australia because of our widespread adoption of digital systems,........

© Canberra Times