The Committee will specifically examine the adoption and use of artificial intelligence (AI) systems and processes by public sector entities to conduct certain functions, including but not limited to the delivery of services, to help achieve their objectives.

The inquiry will have particular regard to the following:

• the purposes for which AI is currently being used by the public sector entity and whether there are planned or likely future uses
• the existing legislative, regulatory and policy frameworks that are relevant to the use of AI and whether they are fit for purpose
• whether the internal governance structures that currently exist for AI will ensure its ethical and responsible use by public sector entities
• the internal framework/policies or additional controls used for assessing the risks associated with the use and possible misuse of AI, including the areas of security, privacy, ethics, bias, discrimination, transparency and accountability
• whether there is an adequate line of sight to the output of AI, and the decisions made through its use
• whether the public sector has the internal capability to effectively adopt and utilise AI into the future
• whether there are sovereign capability issues to consider given that most AI tools currently used in Australia are sourced from overseas
• any other related matters.

The Committee invites submissions to the inquiry addressing the terms of reference by Friday 25 October 2024.

The Committee will make use of existing submissions to the Inquiry into Commonwealth Financial Statements 2022-23 that were requested from Commonwealth agencies on their use of AI.