The NSWCCL has highlighted the urgent need for a comprehensive regulatory framework to govern the use of AI by public sector entities in Australia. While AI offers significant benefits in improving efficiency and service delivery to the public, it also poses risks to privacy, fairness, transparency, and accountability. NSWCCL’s recommendations aim to achieve a balance of innovation with the protection of individual rights and the promotion of public trust.

Key Recommendations:

• AI Safety Commissioner: Establish an independent statutory office to oversee AI regulation, conduct audits, and enforce compliance.
• Bespoke AI Legislation: Develop targeted legislation adopting a risk based approach with clear and proportionate obligations for entities using AI.
• Strengthened Existing Laws: Update privacy, consumer protection, and anti-discrimination laws to include AI-specific provisions.
• Improved Governance Structures: Introduce dedicated AI governance boards and ethics committees to ensure responsible deployment and oversight.
• Public Engagement: Launch education initiatives and consultations to inform the public about AI’s risks and benefits.

Risk Assessment and Transparency
NSWCCL emphasis the need for an effective risk assessment framework to address
issues such as security, privacy, and bias. Agencies should:

• Conduct regular audits, privacy impact assessments, and implement data minimisation principles.
• Ensure transparency through public disclosure of AI use and clear AI decision-making processes.
• Learn from other global cases to prevent harm to vulnerable populations caused by opaque decision-making.

Sovereign AI Capabilities
Dependence on foreign AI tools poses risks, including non-compliance with Australian laws and potential data vulnerabilities. NSWCCL advocates for investing in domestic AI development and collaborating internationally on AI standards to reduce reliance on overseas technologies.

Ethical and Social Considerations
NSWCCL highlights the importance of sector-specific ethical guidelines, particularly for sensitive areas such as law enforcement, healthcare, and social services. A proposed Human Rights Act would mandate human rights impact assessments for all AI systems.

By implementing these measures, NSWCCL believes Australia can establish a forward looking framework for AI governance, ensuring its responsible use while upholding democratic values and protecting the individual rights of Australians.