The Australian Government has introduced a new policy to guide the responsible use of artificial intelligence (AI) across its public service agencies. Effective September 1, 2024, the policy sets a national benchmark for AI governance. It ensures that government agencies use AI safely, ethically, and transparently. The framework is mandatory for all non-corporate Commonwealth entities (NCEs), while corporate entities are encouraged to adopt its principles voluntarily.

Scope and Exemptions

The policy applies widely across government but excludes AI used in national security contexts. It does not apply to the defense portfolio or the National Intelligence Community (NIC)—which includes the Office of National Intelligence (ONI), Australian Security Intelligence Organisation (ASIO), and Australian Signals Directorate (ASD). However, these entities may voluntarily adopt relevant components of the policy if doing so does not compromise security operations. This strategic carveout preserves flexibility for defense and intelligence agencies while maintaining consistency with broader AI governance standards.

Goals and Guiding Principles

The policy’s primary goal is to create a coordinated and consistent approach to AI use across the Australian Public Service (APS). It introduces baseline requirements for governance, assurance, and transparency, ensuring AI is deployed responsibly and effectively. The Australian Government recognizes AI’s transformative potential but also acknowledges ongoing public concerns about privacy, transparency, and AI-assisted decision-making. Building trust remains central to the policy’s implementation.

Public Transparency and Accountability

To strengthen trust, all agencies must publish public-facing AI transparency statements within six months of the policy’s start. These statements must explain:

• How AI is used within the agency.

• How its performance and risks are monitored.

• What safeguards are in place to prevent harm.

Each statement will undergo annual review to remain current as technologies and use cases evolve.

Agencies must also designate accountable officials within 90 days of the policy taking effect. These officials will coordinate AI initiatives, ensure compliance, and share best practices across the public sector.

Integration with Existing Frameworks

The responsible AI policy aligns with existing regulations on data governance, cybersecurity, privacy, and ethics. Agencies should integrate its requirements into frameworks such as the APS Code of Conduct, data management standards, and national cybersecurity policies. This integrated approach prevents duplication and encourages collaboration across departments. The policy’s flexible design also allows adaptation as new AI technologies and regulations emerge.

Capacity Building and Training

A key component of the policy is workforce readiness. Agencies are encouraged to provide AI training for all employees, with specialized courses for staff managing AI procurement, development, or deployment. These initiatives will help build long-term expertise and support responsible innovation. Agencies are also invited to join the pilot phase of the Australian Government’s AI Assurance Framework. Participation will help refine best practices and generate insights that can be shared across departments.

Balancing Security and Innovation

While the policy excludes defense and intelligence agencies, it allows them to selectively adopt principles that strengthen internal accountability. This balance ensures that national security functions remain protected while promoting consistent AI governance across other public sectors. The policy ultimately represents a forward-looking step in responsible AI deployment. By emphasizing transparency, accountability, and collaboration, it aims to strengthen public confidence while encouraging innovation across the Australian Public Service.

Need Help?

If you’re wondering how Australia’s AI policy, or any other government’s AI regulations, could impact your organization, reach out to BABL AI. Hence, their Audit Experts can provide insights and guidance to help you stay compliant and informed.