The NSW Government’s Digital NSW has issued the NSW AI Operational Policy, which defines governance and assurance accountabilities and establishes mandatory rules for acceptable AI use that NSW Government agencies and employees must follow.
The policy replaces the NSW AI Ethics Policy and adopts Australia’s AI Ethics Principles to ensure consistent national alignment.
Agencies must now adhere to Australia’s AI Ethics Principles when designing, developing, deploying and using AI systems. Agencies, the policy says, should use AI in ways that benefit individuals, society and the environment.
Agencies also must appoint an accountable official to oversee the policy’s implementation, and act as a point of coordination for the Office of AI. Additionally, agencies must establish governance and assurance of AI use using existing functions where possible and ensure that all AI use cases are registered in the AI Assessment Framework Platform.
Other mandatory requirements including applying the AI Assessment Framework to an AI use case where the registration process determines an assessment is required, and referring high-risk and critical-risk AI use cases to the AI Review Committee for advice on risk mitigation.
The policy applies to Agency Heads, executives and anyone responsible for using, implementing, governing, assuring, or approving AI systems.
However, the government said, this policy is not mandatory for local government, universities or third-party suppliers.
Additionally, the policy does not apply to standard automation and analytics that follow predefined logic and do not generate predictions or recommendations used to inform or automate decisions. This includes macros, scripts, deterministic rules-based processes, and descriptive analytics.
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