The Department of Immigration and Border Protection will employ IBM's Watson platform to analyse unstructured data.
The department said it would use the 'cognitive computing' platform to analyse data drawn from sources including news feeds and government reports.
"We are hoping that Watson will allow us to more effectively manage the information overload problem by detecting signals in the very noisy world of unstructured, open source data," acting deputy secretary, intelligence and capability, Randall Brugeaud, said in a statement.
"Being able to rapidly expose connections between otherwise isolated threads will allow us to become more effective in our mission."
"The internet, coupled with modern information and communication technologies has the potential to serve up huge amounts of useful data to our analysts; but this creates the risk of information overload," Brugeaud said.
"The portfolio is taking a leading role in cognitive computing for the Australian government and is working closely with a number of partner agencies to understand its potential," Brugeaud said.