Submission to the inquiry into artificial intelligence in New South Wales

New South Wales (NSW) leads the nation in developing and applying artificial intelligence (AI) – 45% of all AI businesses in Australia are in NSW (Investment NSW, 2022). This puts NSW in an enviable position to become an international AI hub – bringing together the best of Australia’s and the world’s AI experts. Australians are supportive of the potential of AI, with 69% believing that AI will have a net positive impact on the nation (Selwyn et al., 2020).

Unlike many traditional industries, AI development requires comparatively lower upfront capital and is less constrained by geographical factors (e.g. the location of resources), allowing the sector to quickly move and adapt to ever changing market conditions. The NSW Government must ensure that it can maintain a strong AI ecosystem and talent pool to retain NSW’s competitive and innovative edge.

AI systems, like all new technologies, also present challenges. A lack of user familiarity with AI systems and AI’s overconfidence in its answers risks users relying too heavily on AI decision making, without appropriate checks and oversight. Biases in training data and violations of intellectual property rights are emerging issues that must be managed. In some instances, AI raises issues around privacy and civil liberties that must be acknowledged and potentially regulated. In a responsible democracy, users should be aware of these risks and understand how to use AI ethically to ensure they mitigated. AI should only be used to provide and support government services when its use meets community expectations, has demonstrable value and provides fair and equitable outcomes.

In 2022 ATSE released its vision for AI technology in Australia which calls for comprehensive investment in fundamental AI research along with ongoing investment implementable AI technologies. This work has underpinned ATSE’s work with the Australian Government through the National Science and Technology Council on a rapid report on generative AI and has provided submissions to the Australian Government on generative AI in the Australian education system, safe and responsible AI use and the National Robotics Strategy. ATSE makes the following recommendations for the NSW Government’s approach to AI which will encourage development of these technologies in areas of strategic importance for the state:

Recommendation 1: Invest in AI research and development for critical New South Wales industries, including financial services, manufacturing, health and agriculture.

Recommendation 2: Provide professional development opportunities, supported by professional development leave, to teach existing educators how to engage with AI both inside and outside the classroom.

Recommendation 3: Support investment in cost-effective and clinically meaningful AI and robotics for state operated or managed hospitals and licenced health care providers.

Recommendation 4: Amend the Artificial Intelligence Ethical Policy Statement to require ethics training for all members of the New South Wales public service who interact with AI systems that support decision making.

Recommendation 5: Require regular reporting and monitoring of AI-supported decisions made by government.