The NSW Government has come out on top in Intermedium’s Digital Government Readiness and Maturity Indicator Report, eclipsing the Federal Government for a third consecutive time.

Scoring an 18.7 overall across digital government readiness and maturity, the NSW Government led by Minister for Customer Service and Digital Government, Jihad Dib, pipped the Federal Government by only 0.7 points.

NSW first topped the ranking in April 2022 with 17.4 points and also scored 18.7 in the report released last June 2023. This year’s report pointed out NSW’s track record of ministers as “strong champions of digital services”, the state’s involvement in the Data and Digital Ministers Meeting (DDMM), and “its decade-long focus on digital and customer service which has given it a strong foundation of policies, guidance materials, governance arrangements and platforms resulting in its implementation of digital services”.

All states, the Federal Government and the New Zealand Government have improved their scores from the previous report, with Federal rising by 0.4 points to 18; Victoria coming in third on 17.4 (+0.4 points); Queensland following on 16.7 and recording the highest jump by 2.5; Australian Capital Territory next on 16.6 (+0.4), joint with South Australia also on 16.6 (+2.2); Western Australia on 16.4 (+1.5); Northern Territory on 16.1 (+1.1); New Zealand on 15.6 (+0.5); and Tasmania on 14.3 (+1.2).

When the scores were separated, NSW tied the Federal Government on its score for digital government readiness (10) but achieved the top score of 8.8 for digital government maturity, followed by the Federal Government and Victoria both on eight.

“For the first time ever, twenty-four years after the then Federal government launched the short-lived Office of eGovernment and seven years after Intermedium’s first readiness indicator report, all ten ANZ jurisdictions have established the foundation required for ongoing, effective digital transformation of services,” the report said.

“Even more encouragingly, no jurisdiction fell back in its digital government maturity. This is particularly encouraging, given jurisdictions are variously facing significant budgetary deficits and difficult societal challenges requiring major government policy development and investment.

“Jurisdictions are aware of the importance of efficient and effective access to data upon which to make informed decisions about these challenges. Increasingly, citizens expect government responses to be executed speedily, accurately and with a minimum of stress on all impacted parties. It is well recognised across government that to deliver on these expectations, services from relevant agencies must be delivered and supported digitally.

“With the developments seen in 2023-24, it is likely digital transformation has now so much momentum that it cannot be halted. Whether this momentum has progressed with the desired level of force and speed is a separate issue, but the ever-heightening level of data and digital governance across jurisdictions is one of the lead indicators that more politicians, ministers and senior executive administrators have ’got it’ than ever before.

“In a year dominated by excitement and uncertainty over AI, the DDMM released a National Framework For The Assurance Of Artificial Intelligence In Government giving jurisdictions a foundation upon which to develop their requirements.

“This framework, along with progress on digital identity, digital inclusion and community safety are clear indications of a growing tendency for jurisdictions to collaborate on national approaches to digitising citizen services and to sharing data across jurisdictional boundaries in an effective and lawful manner.”

The report findings coincided with the final report handed down from the Artificial intelligence (AI) in New South Wales parliamentary inquiry, which made 12 recommendations for the government to initiate best practice guidelines when it comes to the responsible use of AI across society.

The recommendations were:

• That the Government investigate how the Artificial Intelligence Assurance Framework could be effectively integrated into the Procurement Policy Framework.
• That the Department of Education prioritise the provision of specific guidance and training for all teachers on the ethical and effective use of artificial intelligence within education.
• That the NSW Government advocate to the Australian Government for greater protection of the copyright and intellectual property of those working in creative industries in light of the challenges presented by generative artificial intelligence.
• That the Department of Communities and Justice examine the ways in which access to courts and the justice system in New South Wales could be expanded through the appropriate use of artificial intelligence, while ensuring that judicial discretion remains intact.
• That the Government consider maintaining a publicly available register of automated decision-making systems available within Government and its agencies and when they are applied.
• That the Government deliver a community education campaign about artificial intelligence, that informs the public about its risks, and to encourage effective and safe use.
• That NSW Government Ministers liaise with their state and federal counterparts to ensure a consistent approach in the governance of artificial intelligence.
• That the Government conduct a regulatory gap analysis, as soon as possible, in consultation with relevant industry, technical and legal experts to:
  • assess the relevance and application of existing law to artificial intelligence
  • identify where changes to existing legislation may be required
  • determine where new laws are needed.
• That the Legislative Council pursue the establishment of a Joint Standing Committee on Technology and Innovation to provide continuous oversight of artificial intelligence and other emerging technologies.
• That the Government appoint a NSW Chief AI Officer, supported by Chief AI Officers in departments and agencies, to maximise the responsible use of artificial intelligence in a rapidly changing technology landscape, including:
  • working across all government departments and offices, including with the Information and Privacy Commissioner, Chief Scientist and Chief Data Officer, to assist the responsible uptake and regulation of AI technology by Government
  • providing ongoing strategic advice to the Government about trends, opportunities and risks of AI use in NSW government departments
  • leading public education initiatives.
• That the Government investigate creating a NSW Office of AI with the resources and expertise to ensure the state’s service delivery is protected and enhanced through the responsible use of AI technology, including:
  • working across government departments to assist the uptake of AI technology to enhance service delivery, including procurement and internal development
  • updating the NSW AI Assurance Framework and other AI guidelines periodically, to maintain relevance, legality, national and global alignment and appropriateness for use in NSW
  • undertaking public safety campaigns. For example, to raise awareness about deepfake content, misinformation and disinformation online.
• That the Government extend partnerships with industry academics, experts and professionals to ensure New South Wales is at the forefront of trends that enhance and protect the state’s interests related to AI technology, including:
  • providing public reports on matters, such as:
    • new technologies relevant to state service delivery,
    • the landscape of AI regulatory frameworks,
    • and trends, risks and opportunities for the state associated with artificial intelligence. For example, the impact of artificial intelligence on NSW labour markets,
  • providing ongoing strategic advice to the Government about trends, opportunities and risks of AI use in New South Wales,
  • testing AI models to provide public advice on their use in New South Wales. For example, plain language explanations of Large Language Models and the operation of social media algorithms,
  • providing advice on educational requirements to enhance the state’s AI capability, including through primary, secondary, vocational and tertiary education,
  • partnering with private enterprise to undertake projects that align with the state’s public interest while upskilling the technology industry through a dedicated AI Engineers apprenticeship program,
  • collaborating with the Federal Government’s AI Safety Institute to enhance the country’s capability and alignment, provide security to the public, attract global talent in the AI industry and offer certainty to business and investors.