Department of Finance

Artificial Intelligence (AI) Transparency Statement

The Department of Finance (Finance) is committed to the safe and responsible use of artificial intelligence (AI).

We consider AI offers significant opportunities to improve productivity and service delivery within our workplace.

We govern our AI in line with applicable laws and regulations, the Digital Transformation Agency's (DTA) Policy for the responsible use of AI in government (the Policy) and best practice.

Our approach to AI

At Finance, we are applying the guidance outlined in DTA’s Pilot Australian Government AI assurance framework (the Framework) and have chosen to limit our use of AI to low-risk use cases. This guidance implements Australia’s AI Ethics Principles and uses the Organisation for Economic Cooperation and Developments (OECD) concepts to define AI and identify which of our systems uses AI.

We assess the risk of each use case against 7 criteria and a risk matrix outlined in the framework. These are:

• fairness
• reliability and safety
• privacy protection and security
• transparency and explainability
• contestability
• accountability
• human-centered values.

This assessment determines if a use case is low, medium, or high risk. A low-risk use case means AI does not:

• directly interact with, or significantly impact the public without human intervention
• risk the security of the information or data we hold
• harm the privacy of any individual, including our staff.

We reassess our use cases when:

• a notable change is made to our approach to AI or use of AI
• a use case progresses to another stage in its life cycle
• an AI risk or harm is identified with a use case.

Any use case reassessed as being high risk will be reported to the DTA.

How we use AI

We allow our staff to use AI in their work with the objective of enhancing productivity and service delivery. This includes enterprise AI deployed in our closed internal ICT environment like Microsoft 365 Copilot, as well as publicly available AI like ChatGPT, Claude and Gemini that is that is not deployed in our closed internal ICT environment.

The tasks completed by our staff using AI falls into several usage patterns and domains as outlined by the DTA’s Classification system for AI use. These are:

• the Analytics and insights usage pattern primarily in the Scientific , and Policy and legal domains, where the sensitivity of the data is low risk
• the Workplace productivity usage pattern primarily in the Service delivery , and Corporate and enabling domains.

Our staff use AI to:

• assist in the creation of accessible versions of government documents,
• assist with policy research and analysis
• summarise data across multiple sources
• interrogate, analyse and obtain insights from datasets
• answer questions from staff regarding workplace policies, procedures and processes
• assist in the analysis, creation or summarisation of documents, emails or other content
• create and debug code used in data analysis, management and processing
• assist in the creation of meeting minutes or interview transcripts
• search information repositories and retrieve documents, information or data.

We do not use AI within the Decision making and administrative action or Image processing usage patterns, or the Compliance and fraud detection , and Law enforcement, intelligence and security domains.

How we govern our AI

Finance has a risk-based approach to the use of AI. This approach focuses on identifying, evaluating and monitoring the level of risk associated with implementing AI systems. Once implemented, we monitor the effectiveness of our AI systems by:

• having robust governance arrangements, policies and processes; and
• monitoring AI usage.

Our AI Governance Committee

We have an AI Governance Committee (the Committee) to oversee our adoption and use of AI within Finance. The functions of this Committee include:

• developing and implementing AI safely
• identifying, assessing and managing AI risks and opportunities
• promoting a culture of safe and responsible use of AI
• overseeing and implementing policies and advice from the DTA.

This Committee is co-chaired by two accountable officials (AO) and its membership includes senior executive representatives from the following areas:

• Information Communication Technology Division (co-chair, First Assistant Secretary, Chief Information Officer and AO)
• Risk, Claims and Regulatory Reform Division (co-chair, First Assistant Secretary and AO)
• Budget Policy and Data Division
• Corporate Strategy and Operations Division
• Digital ID and Data Policy Division
• Legal and Assurance Branch
• Human Resources Branch.

Our internal policies and processes

Finance has policies and processes for the adoption and use of AI by our staff, including:

• Acceptable use policy
• Guidance on the use of generative artificial intelligence
• Information security management policy framework
• Information and data policy
• Privacy policy
• Risk management policy framework.

These are regularly reviewed to ensure they remain fit for purpose.

We provide our staff with guidance and training on the safe and responsible use of AI. Staff are required to complete this training prior to being granted access to our secure internal AI.

Our adherence to Whole of Australian Government AI policies

Finance is dedicated to fully implementing the Policy and ensuring ongoing compliance with the Policy. This includes reviewing and updating this statement annually, or when new factors or significant changes to our AI approach impact it.

Finance has implemented all mandatory requirements outlined within the Policy, as demonstrated by the information contained within this statement.

Who to contact regarding our statement

For any questions regarding this statement, or for more information about how Finance uses AI, please email: feedback@finance.gov.au

This statement is authorised by Finance’s two accountable officials, the First Assistant Secretary of the Information, Communication and Technology Division and the First Assistant Secretary of the Risk, Claims and Regulatory Reform Division.

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Artificial Intelligence (AI) Transparency Statement

The Department of Finance (Finance) is committed to the safe and responsible use of artificial intelligence (AI). We consider AI to offer significant opportunities to improve productivity and service delivery while preserving accountability, transparency and public trust.

As a central agency, we provide high quality advice, frameworks and services to achieve value in the management of public resources for the benefit of all Australians. As the lead agency responsible for key initiatives under the APS AI Plan, we aim to lead by example in the responsible adoption and use of AI across government, supported by strong governance, clear accountability and transparency.

Our approach to AI

The AI Delivery and Enablement (AIDE) function within Finance is responsible for driving the delivery of the APS AI Plan, accelerating AI adoption across the APS, addressing common barriers and monitoring AI implementation, coordinating the APS network of Chief AI Officers and developing metrics for successful AI adoption and use.

The GovAI project directly supports this approach by providing a secure, APS-only environment for exploring AI tools, experimenting safely with AI and data, and sharing early use cases and lessons learned across government. Finance is using this platform to develop and operate GovAI Chat, a secure general purpose AI tool designed to expand access to generative AI across the APS in a controlled and secure environment.

In the use of AI within Finance, we follow whole-of-government policy and support our staff in low-risk use cases, building our internal AI capability as well as the Digital Transformation Agency’s Policy for the responsible use of AI in government (the Policy).

We also apply Australia’s AI Ethics Principles and use the Organisation for Economic Co-operation and Developments (OECD) definitions to help identify which of our systems use AI.

When we consider our use of AI, we apply the DTA’s Pilot AI assurance framework, the AI impact assessment tool and the Technical standard for government’s use of artificial intelligence to help us assess impacts, identify risks and put the right safeguards in place.

How we measure the effectiveness of our AI

We monitor AI adoption, training completion, productivity impacts and AI-related incidents to assess effectiveness and inform updates to our governance settings, guidance and training to ensure AI use remains proportionate, safe and beneficial.

Our AI solutions are approved centrally, with risks managed at the enterprise level. This includes standing approvals for low-risk uses, such as using Microsoft 365 Copilot to draft emails with information classified up to OFFICIAL.

Our staff use AI to support everyday work, including making documents accessible, supporting policy analysis, summarising information, analysing data, answering policy and process questions, drafting and reviewing content, writing and debugging code, and preparing meeting minutes and transcripts.

If staff want to use AI beyond these central approvals, they must complete an AI impact assessment and register their use as required by the DTA’s Policy.

We assess AI solutions and compare against criteria drawn from Australia's AI Ethics Principles. Each assessment is rated low, medium or high which helps us decide if the AI use case can be used and what extra controls might be needed.

We won’t approve AI solutions or uses that still carry a medium or high level of risk after safeguards are applied. Where residual risk remains uncertain or insufficiently understood, deployment is deferred until risks can be appropriately mitigated. Any proposal assessed as high risk is also reported to the DTA.

How we use AI

We allow our staff to use AI to improve productivity and help deliver the advice, frameworks and services that Finance provides to government and other agencies.

Finance provides staff with access to AI tools in two ways. In our internal environment, staff can use Microsoft 365 Copilot, which operates within Finance’s Protected network and can be used with information up to PROTECTED, subject to our internal governance arrangements.

Staff use public generative AI tools to enhance productivity and support their core responsibilities. When used outside Finance’s environment, only unclassified information up to OFFICIAL may be entered. Personal, sensitive or classified information must not be entered.

Compliance with these requirements is monitored through our information security and governance frameworks.

Our AI patterns and domains

Finance classifies staff use of AI using the DTA’s Classification system for AI use. Our AI use case patterns and domains are:

· analytics for insights AI pattern, where we use AI to help analyse information, mainly in the Scientific and Policy and legal domains, using low‑risk information

· workplace productivity AI pattern, where we use AI to help staff with routine tasks, mainly in the Service delivery and Corporate and enabling domains.

We do not use AI within the Decision making and administrative action or Image processing usage patterns, or the Compliance and fraud detection, and Law enforcement, intelligence and security domains.

How we govern our AI use

We govern our internal AI in line with applicable laws and regulations, the DTA’s Policy and best practice.

Our AI Governance Committee

We have established an AI Governance Committee (AIGC) as well as appointed an Accountable Official (AO) and a Chief AI Officer (CAIO) to oversee how Finance adopts and uses AI across the department.

The AIGC is jointly chaired by the AO and CAIO, with membership drawn from senior executives across the department. It supports safe and responsible AI use by providing oversight of key decisions, risks and controls for AI use at Finance. The functions of AIGC include:

• promoting a culture of safe and responsible AI use across our workplace
• monitoring, assessing and managing AI‑related risks and opportunities
• overseeing and implementing policies and guidance from the DTA.

Our internal policies and processes

Finance has policies and processes for the adoption and use of AI by our staff, including:

• Acceptable use policy
• Guidance on the use of generative artificial intelligence
• Information security management policy framework
• Information and data policy
• Privacy policy
• Risk management policy framework.

These policies and processes are regularly reviewed to ensure they remain fit for purpose.

We provide our staff with guidance and training on the safe and responsible use of AI. Staff are required to complete this training prior to being granted access to our secure internal AI.

Finance is committed to the full implementation of the Policy and to maintaining ongoing compliance. This commitment includes reviewing and updating this statement annually, or sooner where there is a significant change to our approach to artificial intelligence.

Who to contact regarding our statement

For any questions regarding this statement, or for more information about how Finance uses AI, please email feedback@finance.gov.au.

Authorisation

This statement is authorised by Finance’s Accountable Official, the First Assistant Secretary, Information, Communication and Technology Division, and the Chief AI Officer, First Assistant Secretary, Artificial Intelligence Delivery and Enablement Division.