TLDR: The New South Wales (NSW) Government has launched a new Office for Artificial Intelligence (AI) within Digital NSW to ensure the safe and strategic adoption of AI across its agencies. This initiative aims to set robust standards, provide expert advice, and build AI literacy within the public service, while also establishing clear authority limits for AI agents. The move comes as Generative AI is projected to contribute significantly to the Australian economy, and the government seeks to maximize benefits while mitigating risks. An updated AI Assessment Framework is also expected later this year.
The New South Wales (NSW) Government has taken a proactive step towards the responsible integration of artificial intelligence by establishing a dedicated Office for Artificial Intelligence (AI) within Digital NSW, a division of the Department of Customer Service. Announced on September 4, 2025, this new office is tasked with driving and coordinating the safe and strategic adoption of AI across all NSW government agencies.
A core mandate of the Office for AI is to “set robust standards and provide expert advice to support best practice use of AI in helping to enhance public sector productivity and ensure the technology and its use are trustworthy for the community.” This includes establishing clear authority limits for AI agents, addressing critical governance and control aspects in the deployment of AI technologies.
Minister for Customer Service and Digital Government, Jihad Dib, emphasized the importance of this initiative, stating, “Artificial intelligence is increasingly part of our everyday lives and as a government we need to make sure it is used responsibly and provides clear benefits for the community.” He added, “The new Office for AI will not only lead NSW’s use of AI but will set the roadmap on how to safely and responsibly incorporate and manage emerging technologies for more effective delivery of government services in the future.”
The establishment of this office reflects the government’s commitment to harnessing AI’s transformative capabilities while building on existing strong foundations of data governance and compliance. Generative AI (GenAI) alone is anticipated to contribute approximately $115 billion to the Australian economy by 2030. The new office will play a crucial role in identifying and limiting associated risks to maximize these potential benefits.
In addition to the new office, the NSW Government plans to release an updated AI Assessment Framework later this year. This framework is being developed in partnership with the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
The Office for AI has been set up for an initial two-year period, acknowledging the rapid evolution of AI technology. Its functions will complement the existing AI Review Committee (AIRC), which is responsible for reviewing high-risk AI projects proposed by the NSW Government.
Effective September 3, 2025, the AI Review Committee is chaired by an independent member, Edward Santow, Co-Director of the UTS Human Technology Institute and former Human Rights Commissioner for Australia. Santow welcomed his appointment, noting the committee’s “key role as part of the guardrails for the use of AI across the public sector.” He expressed his anticipation of collaborating with the newly appointed members to ensure the committee is “well positioned to advise on how to deliver safe, responsible and effective AI projects across NSW.”
Seven new committee members have also been appointed, bringing diverse expertise to the AIRC:
Dr Alex Antic (Faculty Head of AI Strategy at UNSW Canberra)
Professor Nicholas Davis (Co-Director, UTS Human Technology Institute)
Dr Kylie de Boer (Board Chair and Non-Executive Director, Westmead Fertility Centre)
Howard Elliott (litigation strategy advisor and expert witness)
Ajoy Ghosh (Non-Executive Director, Amnesty International Australia)
Lisa Schonstein (Group Chief Privacy Officer for QBE Insurance)
Rodney Smith (Assistant Commissioner, State Intelligence Command, NSW Police).
Laura Christie, Government Chief Information and Digital Officer, highlighted that this new function “positions the NSW public sector to drive use of AI and harness its benefits across departments and agencies and for the people of NSW.” She further stated, “We are building on our strong foundations to drive the trustworthiness and use of these new technologies which will change the way we support customers across the state.”
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The initiative underscores NSW’s commitment to leading in the responsible adoption of AI, ensuring that technological advancements serve the community effectively and ethically.
