NSW AI Operational Policy
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.
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Who issued it
Who it governs
NSW Government agency heads, executives, employees, and those responsible for designing, procuring, governing, or using AI systems within the NSW public sector.
What the document contains
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.
The policy is not mandatory for local government, universities, or third-party suppliers, and it exempts specific law enforcement operational matters from certain requirements.
- 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.
· 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
How it scores
Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.
Accountability
4/5Clear 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
3/5Non-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
3/5Respect 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
4/5Humans 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
4/5Openness 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
4/5Consequences 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
4/5Required 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