The federal government will require all suppliers under whole-of-government arrangements to advise of any plans to use artificial intelligence, as part of its new AI plan.
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Public Service Minister Katy Gallagher unveiled the Australian Public Service AI plan on Wednesday, saying it would enable the government to unlock the potential that AI offers.

It includes the roll-out of an in-house AI chatbot, new chief AI officer roles and mandatory training.
The APS AI plan, contained in a 30-page document, also sets out the expectations for external service providers.
It notes there are already optional AI clauses in the Digital Transformation Agency's digital sourcing "ClauseBank", a series of pre-drafted terms agencies can use in their commercial agreements with suppliers.
The optional AI clauses state that a service provider's use of AI is approved by the buyer.
The government will expand on this by requiring all suppliers under the whole-of-government management advisory services and people panels to advise of any planned use of AI in the delivery of services, when they respond to requests for quotes.
The government will also add to the ClauseBank other clauses that state that consultants and external contractors remain fully responsible for the services they deliver "regardless of whether generative AI is used in their development or delivery".
A clause will also be added that ensures transparency and accountability in external providers' use of generative AI technology in government work, the AI plan states.
"These will better equip agencies to assess risks and manage compliance throughout the procurement lifecycle, and meet their probity obligations under the Commonwealth Procurement Rules and the Policy for the responsible use of AI in government," the plan states.
Consulting firm Deloitte came under global scrutiny after a report it produced for Department of Employment and Workplace Relations was found to have contained AI-generated errors.
Deloitte apologised and partially refunded the government for the project.
Senator Gallagher said the additional model clauses were about transparency around AI use.
"So if you're a consultant or contractor working in the APS, you would have to abide by the guidance that will be provided centrally," Senator Gallagher said.
Under the new plan, the government will expand its use of GovAI and introduce a secure, in-house AI chatbot, alongside mandatory training for public servants and guidelines on the use of AI platforms.
GovAI will act as a centralised AI hosting service that allows agencies to access a range of AI models for their own development, including an onshore instance of OpenAI's GPT models.
Senator Gallagher said giving the public service access to AI tools was important in attracting and retaining talent.
"We're seeing it already, with entry level graduates coming in, we need to be offering this type of technology to them or they're going to go and work elsewhere," she said.
The Community and Public Sector Union national secretary Melissa Donnelly said the government's AI plan was a good starting point.
She welcomed Minster Gallagher's assurance that the plan was not about replacing people but still had reservations.
"However, the CPSU remains concerned about potential job losses and their impact on services and public sector workers," Ms Donnelly said.
"The CPSU will continue to advocate for worker protections, transparency and genuine ongoing consultation to ensure AI does not deepen existing inequalities."

