AI Policy Update: Strengthening responsible use across government

The revised Policy for the responsible use of AI in government builds on the AI Plan for the APS and strengthens the governance requirements that supports safe and responsible use of artificial intelligence (AI) across government.  

“As AI continues to evolve, policy must keep pace to ensure government can harness the benefits safely and responsibly,” outlines Ms Lucy Poole, Deputy Chief Executive Officer, Strategy, Planning and Performance at the DTA.  

“This updated policy strengthens the guardrails that enable agencies to safely innovate, while keeping the interests of Australians at the centre of the Government’s pursuit of uplift through AI solutions.”

Consistent with the first version, the updated Policy applies to all non-corporate Commonwealth entities, with exceptions for the defence portfolio and the national intelligence community. While not mandated, corporate Commonwealth entities are encouraged to apply the Policy.

What’s new  

Setting a strategic direction for AI

Stronger arrangements have been introduced to guide how agencies plan for, govern and deploy AI.  

Agencies must now establish how they are planning AI adoption to emphasise where opportunities lie to be embraced by through innovative solutions.

Embedding stronger operational practices

Agencies must now embed a minimum set of responsible AI practices within their organisation.  

Practices include:  

• Implementing clear processes to assess, approve and oversee AI use cases across their lifecycle in line with the Policy
• Informing staff who are designing and implementing AI use cases about Australia’s AI Ethics Principles
• Integrating a clear process to address AI incidents
• Establishing a pathway for staff and the public to report AI safety concerns  

These measures help to establish a consistent approach to responsible AI use across the public sector.

Uplifting workforce capability

Workforce capability has also been strengthened. Foundational AI training will now be mandatory for all staff across the APS, building a consistent baseline of understanding of responsible AI use.  

“Strong governance and capability must advance together to be effective in practice,” emphasises Ms Poole. “The revision to the Policy ensures agencies have both the systems and the skills needed to use AI safely to deliver better outcomes for the community.”

Strengthening transparency and accountability

Agency obligations under the Standard for AI transparency statements and Standard for accountability have also been iterated to ensure use of AI continues to uphold public confidence.  

The update introduces formal governance requirements for individual AI use cases. Agencies must maintain an internal register of all in-scope use cases and assign an accountable owner for each one. Additionally, prior to deployment, agencies must complete an AI impact assessment for each in scope use case.

Assessments consider potential impacts on:

• fairness
• safety
• privacy
• transparency
• security
• human-centred values

This process will help teams identify, assess and manage AI use case impacts and risks against Australia's AI Ethics Principles.

It is supported by a new AI impact assessment tool which provides a consistent way for agencies to identify and manage risks and manage their obligations under the policy.

“Stronger use-case governance ensures risks are identified early and managed effectively,” continues Ms Poole. “The updated Policy and assessment tool give agencies and accountable officials a clearer and practical way to design safer AI use cases that uphold public confidence”

Looking ahead

The first, new, mandatory requirement begins on 15 June 2026, with all remaining requirements coming into effect in December 2026.This approach supports agencies to adopt the new arrangements in ways that reflect their operating environment and level of AI maturity, while maintaining consistent whole-of-government expectations.

“The latest iteration of the policy provides the clarity, structure and safeguards needed to adopt AI at scale,” stresses Ms Poole. “It positions government to use AI with integrity and ensures Australians can trust how AI is being used across the public service.”

View these recent adjustments in the Policy for the responsible use of AI in government.

Access the AI impact assessment tool.