On July 25, 2024, the Parliament of New South Wales (NSW) published a report on artificial intelligence (AI). The report discusses the use of AI in NSW, the opportunities and risks of AI, and provides recommendations for the regulation of AI.

The use of AI in NSW

The report highlights the use of AI across various sectors in NSW including automated vehicles, manufacturing, healthcare, and customer services. Specific applications noted in the report include generative AI, responsible AI, autonomous operations, computer vision, and chatbots. The report also highlights AI's potential social benefits, such as in healthcare and justice system accessibility.

Risks of AI

Despite the many benefits, the report acknowledges the risks associated with AI, including:

• impact on the labor force, requiring careful management to minimize disruption;
• privacy and cybersecurity threats;
• potential bias reflecting the data on which AI is trained;
• accountability and transparency issues;
• effects on copyright laws in creative industries; and
• concerns about the ethical use of facial recognition technology.

The report emphasizes the importance of maintaining judicial discretion and human oversight in automated decision-making systems and calls for a publicly available register of such systems to ensure transparency and accountability.

Regulation of AI

The report notes that the NSW Government currently regulates AI through policies and frameworks like the AI Strategy, AI Assurance Framework, and AI Ethics Policy. The report explains that these policies align with broader legal requirements, including data protection, consumer law, and privacy. However, the report highlights the lack of a human rights statute in NSW, differentiating it from other jurisdictions with individual rights-based frameworks. 

Notably, the report provides several recommendations to regulate AI, including:

• prohibiting AI systems that are manipulative, exploitative, or used for social scoring;
• placing a moratorium on facial recognition technology;
• strengthening privacy laws to address AI's challenges, including mandatory Privacy Impact Assessments (PIA) and enhanced powers for the Privacy Commissioner;
• conducting a regulatory gap analysis to assess existing laws and identify areas needing new legislation;
• encouraging the NSW Government to integrate the AI Assurance Framework into the Procurement Policy Framework;
• prioritizing guidance and training for teachers on the ethical and effective use of AI within education; and
• advocating for greater protection of copyright and intellectual property in creative industries.

To ensure a coordinated approach to AI governance, the report recommends:

• liaising with state and federal counterparts to ensure a consistent approach to AI governance;
• establishing a Joint Standing Committee on Technology and Innovation for continuous oversight;
• appointing a NSW Chief AI Officer supported by Chief AI Officers in departments and agencies;
• creating a NSW Office of AI to enhance state service delivery through responsible AI use; and
• extending partnerships with industry, academics, and experts to keep NSW at the forefront of AI trends and protect state interests.

The Government's response to the report is due on October 25, 2024.

You can read the report here and view its timeline here.