CPA calls on public sector to leverage AI governance frameworks

New research from CPA Australia has revealed that government departments and agencies are frequently leveraging generative AI tools, yet lack proper governance protocols.

In a recent report, AI Governance in the Public Sector, CPA found that not only were sound governance protocols lacking across the public sector, but employees were also often unaware of them.

Gavan Ord, business investment lead at CPA Australia, said AI offered substantial benefits to the sector, yet also presented an array of risks, therefore underlying the importance of effective governance.

Governance in the public sector was paramount, particularly in areas of data sensitivity, transparency and accountability, Ord said.

“There appears to be a widespread lack of clarity and guidance in the public sector about which AI tools employees can, can’t, should and shouldn’t be using, as well as how to use them meaningfully.”

“This confusion and uncertainty are problematic, especially in agencies where data security is critical as open-source or external tools may result in unintentional data exposure. It only takes one person in one department making one mistake because of a lack of appropriate controls – or knowledge of them – to cause a major issue. Currently, it appears that existing controls are insufficient or not well understood.”

Based on a poll conducted by the body, it was found that 40 per cent of public sector employees were accessing publicly available AI tools to do their work, while only 24 per cent were using AI tools provided by their employer.

In addition to this, only 30 per cent of respondents indicated that their organisation had a policy or had provided guidance on the use of AI tools at work, while 23 per cent said their organisation was in the process of establishing one, only 28 per cent reported that no such policy existed and 10 per cent were unaware whether a policy existed.

According to Ord, the poll findings were concerning despite the modest sample size of 976 participants.

Ord said the body derived answers from a webinar it hosted in response to a recent report from the Australian National Audit Office (ANAO) that highlighted “potential flaws in public sector governance of AI tools and provided recommendations to address them”.

“The public sector urgently needs a fit-for-purpose governance framework that goes beyond compliance and provides clarity, confidence and ethical guidance to users,” he said.

“This should very clearly determine which tools are permitted and under what conditions, as well as how outputs should be reviewed and validated to ensure the appropriate risk management, privacy and accountability.”

“AI tools can improve the quality of decision making, however an overreliance on AI tools could ultimately undermine those decisions. AI tools are best used as a means to reduce the time spent on repetitive tasks, freeing up individuals to focus their efforts on the more complex and impactful duties of their role.”

Ord added that the CPA was looking to focus on AI governance in the public sector at upcoming events, as educating public sector employees on how to use AI tools efficiently and effectively was a vital aspect.