Treasurer Daniel Mookhey announced that the partnership with the ACCC will utilize advanced AI technology to identify bid-rigging and cartel conduct in procurement.

Given that NSW spends over $42 billion annually on goods, services, and construction, improved detection of collusion is expected to lead to better project outcomes and cost savings.

This initiative involves sharing contract and tender data to identify suspicious patterns, which could lead to prosecutions and suspension of offending companies.

The AI will analyze bidding patterns to flag potential collusion before investigations, ensuring fair competition and reducing inflated costs.

The move stems from discussions at the Commonwealth Treasurer's Economic Reform Roundtable and seeks to improve transparency and competition in NSW's over $42 billion annual procurement spend.

International examples, such as South Korea, demonstrate that data screening tools can effectively flag cartel activity, leading to investigations and significant fines.

This effort aligns with broader reforms to improve procurement practices, deliver better value for taxpayers, and promote fair competition.

Bid-rigging, a form of illegal collusion, is difficult to detect but can significantly inflate government spending, making effective detection crucial.

The NSW Labor government is partnering with the Australian Competition and Consumer Commission (ACCC) to leverage artificial intelligence (AI) in detecting collusion among companies bidding for government contracts, aiming to prevent illegal bid-rigging.

Treasurer Daniel Mookhey emphasized that the partnership aims to deter conspirators and protect legitimate operators, ensuring government spending benefits public services.

ACCC Chair Gina Cass-Gottlieb highlighted that preventing cartel conduct is essential to avoid inflated costs and ensure compliance with laws.

Similar collaborations have been established earlier this year between the ACCC and South Australia, with ongoing discussions at the federal level.

This initiative is part of a broader effort to use AI to enhance public sector efficiency and integrity, including establishing the NSW Office for AI and AI initiatives in schools.