DTA updates the Policy for the responsible use of AI in government and current guidance for Commonwealth procurement of AI solutions

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What you need to know:

• In addition to the Digital Transformation Agency (DTA)’s Policy for the responsible use of AI in government v2.0, released on 15 December 2025, the DTA has also released the AI Impact Assessment Tool and AI Procurement Checklist to assist Commonwealth agencies planning the procurement of AI solutions.  

• The DTA has since updated the Policy with a revised version (v2.1) which adds a new Appendix D: Classification system for AI use.

• The AI Impact Assessment Tool supersedes the previous ‘Pilot AI assurance framework’.

• This DTA guidance should be considered together with the AI model clauses and contract templates available on the BuyICT website, along with existing Commonwealth Procurement policy.  

What you need to do:

• When planning for a procurement for an AI solution, use the AI Impact Assessment Tool to identify AI specific risks that will need to be managed as part of the procurement design.

• Refer to the AI Procurement Checklist to ensure all applicable processes have been complied with in the procurement of the AI solution.

• Consider using the new DTA contract templates to appropriately manage the risks in relation to procuring AI solutions.

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Updated Policy for the responsible use of AI in government (v2.1)

The DTA issued a Policy for the responsible use of AI in government (v2.0) on 15 December 2025. A further version (v2.1) was released by the DTA on 21 October 2026 (see here: Policy for the responsible use of AI in government). The updated policy includes a new Appendix D: Classification system for AI use, which provides further information for Commonwealth agencies as to how their AI usage should be classified. This also includes how Commonwealth agencies may utilise AI during a procurement process (e.g. detecting procurement ‘anomalies’ and procurement workflow support).

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AI procurement in government

Currently, there are several resources, in addition to the Policy for the responsible use of AI in government, released by the DTA to further assist Commonwealth agencies in the planning of procurements for AI solutions:

• Guidance on AI procurement in government includes detailed advice on the process for procuring AI solutions, aligned to existing whole of Australian Government guidance Due to the increased risks when dealing with a rapidly evolving technologies, it is important to ensure that the business case and operational model for the procurement clearly justify the necessity of an AI solution (e.g. why an AI solution is required over a non-AI solution) while still in the planning process;  

• the AI procurement checklist helps Commonwealth agencies ensure all applicable processes have been complied with for AI specific procurements;  

• the AI impact assessment tool helps Commonwealth agencies identify and manage AI specific risks;

• the AI technical standards outlines the required standards any prospective AI solutions must adhere to, including considerations for Commonwealth agencies during the procurement process; and

• the AI model clauses and AI contract template which, although not mandatory, are recommended to be used for the contracts in procurements of AI solutions.  

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Further Information

For further information on the updates to the Policy for the responsible use of AI in government see Policy for the responsible use of AI in government.

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Authors

Rory Alexander – Managing Director

Angelina Yang – Special Counsel

Sonya McNee – Graduate

Miro Teague – Paralegal

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