The AI Strategy sets the direction on the development and use of AI by NSW Government agencies and is underpinned by the mandatory AI Ethics Policy and AI Assurance Framework. The aim of the NSW Government’s approach is to support agencies to innovate with AI technology, while making sure it is used safely and securely, with clear accountability for the design and use of AI Systems.

Agencies are required to adhere to the following mandates in their development, procurement and use of AI systems:

1. The AI Ethics Policy

The AI Ethics Policy provides a principles-based approach to applying AI in NSW Government. The Policy outlines five key principles that will ensure that AI is only used where there is a strong case for doing so. It is focused on better customer services, improved decision-making, transparency, fairness and accountability.

2. The AI Assurance Framework

Commencing on 31 March 2022, the AI Assurance Framework provides practical guidance in designing, building and using AI technology appropriately. The Framework supports agencies to assess risks, implement mitigation strategies and helps establish clear governance and accountability measures. The Framework also requires agencies to detail how their projects align to the five ethical principles contained in the AI Ethics Policy.

Agencies are required to use the Assurance Framework at all stages of their AI projects from inception to handover, as well as periodically to review services that use AI systems.

3. Key AI projects are required to submit their AI Assurance Framework assessments for expert review and endorsement

An AI review body will guide and provide oversight on the use of AI across NSW Government. From 31 March 2022, all AI projects that have a total cost of over $5 million or that are funded by the Digital Restart Fund will be required to submit their completed AI Assurance Framework Assessments to an AI review body for endorsement. Other projects that will require review are projects that use an AI system and that identify residual risks (after mitigations) during assessment against the Framework which are mid-range or higher.

This circular includes the updated AI Strategy and AI Ethics Policy which was reviewed 12 months after the release in September 2020. Minor amendments were made to include a progress update on the actions achieved to date. The former AI User Guide has been replaced with the AI Assurance Framework which contains the assurance requirements for all projects with an AI component.