A consortium of Australian universities and the Anglo-Australian Observatory is currently implementing an adaptive optical system at the Anglo-Australian Telescope. This project aims to enhance the science output of the telescope and establish the utility of adaptive optics at the AAT site. The first stage of the project is a fast tip-tilt system, described here, to be installed in the west coudé room. Subsequent funding has been obtained to implement a second-stage, low-order deformable mirror system which is also outlined. Both phases will primarily serve the IRIS camera/spectrograph, since the maximum gains in image quality will occur in the infrared.