NSW govt redesigns AI framework for agencies

A new artificial intelligence (AI) Assessment Framework has been introduced by the NSW Government, intending to give state agencies clearer guidance, stronger safeguards and more efficient assessments of AI systems.
 
Developed by the NSW Office for AI and using the foundations and principles of the previous framework, the Office for AI has redesigned how this tool looks, feels and works to ensure it is aligned with national and international standards including the Commonwealth National Framework for the Assurance of AI in Government and the European Union AI Act.
 
The new framework replaces lengthy, subjective self-assessments with a faster, standards-aligned approach that automatically identifies the right level of oversight and expert review.
 
It also reduces assessment time from days to less than 30 minutes with low-risk systems able to move through the process quickly, while higher-risk or critical systems are automatically identified for review.

For example, a public-facing AI chatbot, which helps people apply for government services, would be assessed as high risk. This is because the chatbot could collect sensitive personal information and can influence the advice people receive, so mandatory safeguards are triggered, such as a Privacy Impact Assessment, cyber security and legal review and accessibility requirements.
 
It would also be submitted to the AI Review Committee for independent oversight.
 
Ethical principles are embedded in the framework’s logic, helping agencies identify when additional safeguards are needed, such as bias testing, accessibility checks and human-rights screening, meaning appropriate safeguards can be in place before deployment.
 
The redesign was delivered in partnership with CSIROs Data61, and forms part of a broader program to modernise digital assurance in NSW.

This work is supported by additional whole-of-government guidance, including on the use of emerging technologies such as agentic AI.

In July 2025, the Digital Transformation Agency (DTA) released the Australian Government’s AI technical standard, a new resource to support government agencies in delivering services through their use of AI across the public sector.

The Office for AI was created in September to help drive and coordinate the safe, strategic adoption of AI across the state government.

The NSW Government launched an Agentic AI guide in October to support the responsible use of the technology within the NSW public sector and in November, the Australian government received industry support for introducing the National AI Plan, a roadmap to "build an AI-enabled economy".

Minister for Customer Service and Digital Government, Jihad Dib, said AI can transform government services, but we have a responsibility to use it safely.

"This framework ensures agencies identify risks early and apply the right safeguards," he said.
 
“As AI starts to be embedded in projects as business as usual, it is essential we have clear guidelines for its implementation and ensure its use is transparent, inclusive and fair. By aligning our system with national and international standards, we’re building a trustworthy digital government for the future.”
 
Head of the Office for AI, Daniel Roelink, said the redesigned framework is simpler and more accessible for all public servants, informed by process engineering from CSIRO and extensive testing across multiple agencies.”
 
“The framework balances risk and innovation, with strong assurance and community trust at its core," he said.