Prompt action: new framework to guide public sector use of AI

On 21 June 2024, Australia's Data and Digital Ministers, representing the Australian, state and territory governments, released a National Framework for the Assurance of Artificial Intelligence in Government to address how public sector organisations use AI systems.

This matters to the Victorian Public sector because it sets out a governance template for managing AI.

What is the National Framework?

The National Framework aims to provide:

• a nationally consistent approach to the use and adoption of AI by federal, state and territory governments; and
• guidance to governments to develop, procure and deploy AI in a safe and responsible way.

In summary, the National Framework establishes five key cornerstones of AI assurance:

• AI Governance - which comprises organisational structures, policies, processes, regulation, roles, responsibilities and risk management frameworks to ensure that AI is used safely and responsibly, in a way that is fit for the future;
• Data Governance - to create and maintain authentic, reliable and accurate data sets used by AI systems and maintain robust data governance practices that comply with relevant legislation;
• A Risk-based Approach - to assess and manage AI on a case-by-case basis to ensure its safe and responsible development, procurement and deployment in high risk settings;
• AI Standards - where practicable, align AI implementation with relevant standards such as AS ISO/IEC 42001:2023, AS ISO/IEC 23894:2023, and AS ISO/IEC 38507:2022 to ensure consistency and interoperability; and
• Procurement - to consider the importance of procurement documentation and contractual agreements when procuring AI systems or products.

Read the full National Framework.

These cornerstones align with Australia's 8 AI Ethics Principles.

The National Framework provides practical guidelines for implementing these principles in government AI initiatives and projects.

For more information, refer directly to the 8 AI Ethics Principles.

What does this mean for Victorian government departments and agencies?

Public sector departments, agencies and decision makers are already grappling with the implications and risks of AI.

The National Framework provides a useful guide and check, to help make sure your organisation's approach is safe, responsible and defensible. It is not a replacement or reason to depart from other requirements, like your privacy obligations, the Victorian Protective Data Security Standards, and any relevant whole of Victorian Government policy.

What to do next?

• check your current approach and any planned future AI approaches against the National Framework and other relevant legal obligations and policies;
• make sure any AI service you engage with can assure you that their actions are consistent with your legal obligations and policy requirements;
• consider how your other stakeholders, contractors and service providers use or may use AI - and whether you are comfortable with them doing so; and
• when in doubt, seek specific advice and guidance.

We can help review and draft relevant policies, agreements or procurement documentation. We can also assess the risks that may arise to the privacy and security of organisational information in this context.

Please contact us if we can be of assistance.

Contact our team

Bea Stathy Managing Principal Solicitor
M 0408 790 212 E bea.stathy@vgso.vic.gov.au

Melanie Flower Principal Solicitor
M 0409 713 914 E melanie.flower@vgso.vic.gov.au