Record STMT-W2F556BAdvisory

Report 510: Inquiry into the use and governance of artificial intelligence systems by public sector entities - 'Proceed with Caution'

Report State lawOceania · AUadopted

This parliamentary inquiry report from the Parliament of Australia examines the use and governance of artificial intelligence systems by public sector entities. Titled 'Proceed with Caution', the report highlights the growing adoption of AI across the Commonwealth public sector and sets out key recommendations for improving oversight, workforce training, and regulatory frameworks. Major recommendations include introducing AI census questions for public servants, convening a whole-of-government working group to consider standalone legislation and mandatory rules, establishing a statutory Joint Committee on Artificial Intelligence and Emerging Technologies, and ensuring clearer definitions in agency guidance.

Summary and content fields are drawn from the document text and are pending editorial review.

Who issued it

Parliament of AustraliaLegislature · AU

Lead issuer

Legal forceAdvisory

Under whose authorityState law

Judged fromfull text

Who it governs

National governmentLegislatorsRegulatorsPublic sector bodies

Policymakers, public sector administrators, and legislators looking to understand and govern the adoption of artificial intelligence within Australian government entities.

Sectors

Public administration · public sector entities

What the document contains

What's covered

The report covers the current use and risks of artificial intelligence systems within public sector entities, examines existing policy and regulatory environments, and provides committee recommendations on public service capability, standalone legislation, mandatory rules, and parliamentary oversight.

What's missing

The report does not provide binding operational rules or final enacted legislation, serving instead as an inquiry report containing recommendations to the government.

Key takeaways

Public sector entities are increasingly adopting artificial intelligence systems, but existing governance frameworks may be inadequate.
The Australian Public Service Commission should introduce questions on AI and emerging technology usage into its annual employee census.
The Australian Government should convene a whole-of-government working group to evaluate standalone legislation and mandatory rules for AI.
A statutory Joint Committee on Artificial Intelligence and Emerging Technologies should be established to provide continuous parliamentary oversight.
Government guidance must clearly define all AI systems and applications to account for significant technological differences.

Outline

· Chair's foreword
· Membership of the Committee
· Terms of reference
· List of abbreviations
· List of recommendations
· Chapter 1 - Introduction
· Chapter 2 - Artificial intelligence in the public sector
· Chapter 3 - Policy and regulatory environment
· Chapter 4 - A way forward: the Committee's view
· Submissions
· Public hearings

IssuedFebruary 2025

Length1,100 words

FormatNot recorded

Scopenational

How it scores

Pending review

Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.

Accountability

4/5

Clear responsibility for AI outcomes

the establishment of mandatory rules and governance requirements for the use of artificial intelligence and other emerging technologies across the Commonwealth public sector

Recommendation 2

screening score · 2026-10-23

Fairness

2/5

Non-discrimination and equitable treatment

These frameworks must ensure any risks, including sovereign risks, and biases that result from the adoption of these technologies can be effectively mitigated.

Recommendation 2

screening score · 2026-10-23

Human Dignity

2/5

Respect for the inherent worth of persons

the committee reviews relevant legislation or regulations to ensure no loopholes exist in the protection of human rights, democracy and freedoms

Recommendation 3

screening score · 2026-10-23

Human Oversight

2/5

Humans remain in control of consequential decisions

must establish clear thresholds for AI involvement in decision making processes

Recommendation 2

screening score · 2026-10-23

Privacy

2/5

Protection of personal data and private life

all mandatory requirements to stipulate that AI systems must not be deployed for the surveillance of public sector staff

Recommendation 2

screening score · 2026-10-23

Transparency

2/5

Openness about how AI systems work and are used

the specific types and sources of the technology being used, from automated decision-making through to generative AI

Recommendation 1

screening score · 2026-10-23

Enforcement

4/5

Consequences and compliance mechanisms with real force

where the responsibility for enforcing any new legislation or mandatory rules should sit and the frameworks that will be used to ensure compliance

Recommendation 2

screening score · 2026-10-23

Impact Assessment

4/5

Required assessment of an AI system's risks/impacts before or during use

These frameworks must ensure any risks, including sovereign risks, and biases that result from the adoption of these technologies can be effectively mitigated.

Recommendation 2

screening score · 2026-10-23

Topics

artificial_intelligence public_sector governance parliamentary_inquiry regulation