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Record STMT-WD53D77Legally binding

NSW AI Operational Policy

Institutional policy State lawOceania · AUadopted

The NSW AI Operational Policy sets out all-of-government requirements for the safe, lawful, and ethical use of artificial intelligence across New South Wales Government agencies and employees. It defines clear governance and assurance accountabilities, adopts Australia's AI Ethics Principles, and establishes mandatory rules for acceptable AI use, risk assessment, and incident reporting. The policy also mandates the registration of all AI use cases in the AI Assessment Framework Platform to improve transparency and support safe AI adoption and innovation.

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

Who issued it

New South Wales Department of Customer ServiceGovernment · AU
Lead issuer
Legal forceLegally binding
Under whose authorityState law
Judged fromfull text

Who it governs

Public sector bodiesNational governmentState or provincial governmentAI developers and providersAI deployers and usersWorkers

NSW Government agency heads, executives, employees, and those responsible for designing, procuring, governing, or using AI systems within the NSW public sector.

Sectors
Public administration · NSW Government sector agencies and Statutory Authorities

What the document contains

What's covered

The document covers mandatory governance, accountability, and assurance frameworks for NSW Government agencies deploying AI. It specifies rules for registering AI use cases, conducting risk assessments via the AI Assessment Framework, attestation and incident reporting, and acceptable use guidelines for public sector employees.

What's missing

The policy is not mandatory for local government, universities, or third-party suppliers, and it exempts specific law enforcement operational matters from certain requirements.

Key takeaways
  • The policy adopts Australia's AI Ethics Principles as the mandatory ethical baseline for NSW Government agencies using AI.
  • Agencies must designate an Accountable Official and ensure appropriate governance and assurance functions oversee AI systems.
  • All AI use cases must be registered in the AI Assessment Framework Platform prior to use.
  • High-risk and critical-risk AI use cases must be referred to the AI Review Committee for risk management advice.
  • Employees must apply meaningful human oversight, protect government information, and avoid entering sensitive data into unapproved AI tools.
Principles it states
Human, societal and environmental wellbeingHuman-centred valuesFairnessPrivacy protection and securityReliability and safetyTransparency and explainabilityContestabilityAccountability
Outline
· 1 Introduction
· 2 Policy Definitions
· 3 Australia’s AI Ethics Principles
· 4 Agency requirements
· 5 Standard A: Accountability
· 6 Standard B: Acceptable Use
· 7 Compliance and reporting
· 8 Supporting legislation and policy
· 9 Document control and review
· 10 Attachment A – AI Use Case registration
Issued30 July 2026
Length7,814 words
FormatNot recorded
Scopesubnational

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 Accountable Official is the designated senior executive within an agency responsible for overseeing implementation of the NSW AI Operational Policy within that agency.

2 Policy Definitions

screening score · 2026-10-23

Fairness

3/5

Non-discrimination and equitable treatment

AI systems should be inclusive and accessible and should not involve or result in unfair discrimination against individuals, communities or groups.

3.1 AI Ethics Principles summary

screening score · 2026-10-23

Human Dignity

3/5

Respect for the inherent worth of persons

AI systems should respect human rights, diversity, and the autonomy of individuals.

3.1 AI Ethics Principles summary

screening score · 2026-10-23

Human Oversight

4/5

Humans remain in control of consequential decisions

Treat AI outputs as advisory and do not rely on them as the sole basis for decisions. Apply greater oversight for higher-risk decisions and retain human judgement.

6.1 AI Usage Principles and practices

screening score · 2026-10-23

Transparency

4/5

Openness about how AI systems work and are used

Clearly disclose AI-generated content where it may be used in critical decision-making processes or may affect people’s rights, interests, access to services, or trust in the NSW Government.

6.1 AI Usage Principles and practices

screening score · 2026-10-23

Enforcement

4/5

Consequences and compliance mechanisms with real force

Approving and signing an annual attestation of compliance with the policy, to be submitted to NSW GovAI, Digital NSW within the Department of Customer Service.

5.1 Agency Head

screening score · 2026-10-23

Impact Assessment

4/5

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

The AIAF is a mandatory risk assessment tool for NSW Government agencies to ensure responsible design, development, deployment, procurement and use of AI technologies.

2 Policy Definitions

screening score · 2026-10-23

Topics

artificial_intelligence public_administration governance_and_accountability ethics risk_management