The New South Wales government has established a new Office for Artificial Intelligence within Digital NSW to oversee responsible AI adoption across the public sector, emphasizing trustworthy AI to improve government services and benefit the community.

This office will coordinate AI initiatives, set ethical guidelines, and operate alongside the existing AI Review Committee, which evaluates high-risk projects, with an upcoming AI Assessment Framework to guide development.

Current AI projects in NSW include a smart school zone sign trial in the Hunter Region that responds to vehicle behavior, along with systems like the NSW Rural Fire Service's bushfire prediction tool Athena and NSWEduChat for teachers.

AI's role in addressing Australia's productivity crisis is gaining attention, with the federal government planning pilot projects such as AI-assisted housing assessments.

The NSW government projects that AI could contribute up to $115 billion to the Australian economy by 2030.

Future initiatives include proposals for a minister for AI and low-interest AI loans for small and medium-sized businesses to promote responsible AI use.

This move follows a 2024 inquiry into AI governance in NSW, which recommended establishing a broader AI governance framework, appointing multiple chief AI officers, creating a central register of automated decision systems, and conducting regulatory gap analyses.

The Office for AI will work closely with the AI Review Committee, chaired by Edward Santow, to evaluate high-risk AI projects and establish guardrails for deployment.

The office's initial two-year mandate aims to improve productivity, ensure trustworthy AI use, and limit risks associated with AI deployment.

Government officials, including Minister Jihad Dib and CIO Laura Christie, highlighted the importance of trustworthy AI in enhancing service delivery and community benefits.

The creation of the Office for AI precedes the upcoming release of the AI Assessment Framework later this year, marking a significant step in NSW's AI governance.