AI Governance Framework for Government¶

Ready to Use

Purpose¶

This framework establishes the structures, policies, and processes for responsible AI governance in government agencies, ensuring accountability, transparency, and ethical AI use.

Executive Summary¶

AI governance ensures that AI systems are developed and deployed responsibly, ethically, and in compliance with relevant laws and policies. This framework provides a comprehensive approach to AI governance aligned with Australian Government requirements.

Governance Principles¶

Core Principles¶

Alignment with Australian AI Ethics Principles¶

Governance Structure¶

Three Lines Model¶

flowchart LR
    subgraph L1["<strong>FIRST LINE</strong><br/>(Operational)"]
        direction TB
        L1A[Project Teams]
        L1B[Business Units]
        L1C[IT Operations]
    end

    subgraph L2["<strong>SECOND LINE</strong><br/>(Oversight)"]
        direction TB
        L2A[AI Governance Office]
        L2B[Risk Management]
        L2C[Legal/Privacy]
    end

    subgraph L3["<strong>THIRD LINE</strong><br/>(Assurance)"]
        direction TB
        L3A[Internal Audit]
        L3B[External Audit]
    end

    L1 --> L2 --> L3

    style L1 fill:#e3f2fd,stroke:#1976d2,stroke-width:2px
    style L2 fill:#fff3e0,stroke:#f57c00,stroke-width:2px
    style L3 fill:#e8f5e9,stroke:#388e3c,stroke-width:2px

Roles and Responsibilities¶

AI Governance Board¶

Composition: - Chair: Deputy Secretary or equivalent - Chief Data Officer - Chief Information Officer - Chief Risk Officer - Privacy Officer - Legal Counsel - Business Unit Representatives - External Expert (optional)

Responsibilities: - Approve AI strategy and policies - Review high-risk AI proposals - Oversee AI portfolio - Address escalations - Report to executive

Meeting Frequency: Monthly or as needed

AI Classification System¶

Risk-Based Tiering¶

Classification Criteria¶

Classification Process¶

flowchart TB
    START([Start Classification]) --> Q1{Does the AI make or materially<br/>influence decisions about people?}

    Q1 -->|No| T1[<strong>Tier 1</strong><br/>Low Risk]
    Q1 -->|Yes| Q2{Are decisions automated<br/>without human review?}

    Q2 -->|No| T2[<strong>Tier 2</strong><br/>Medium Risk]
    Q2 -->|Yes| Q3{Do decisions affect legal<br/>rights, benefits, or safety?}

    Q3 -->|No| T3[<strong>Tier 3</strong><br/>High Risk]
    Q3 -->|Yes| T4[<strong>Tier 4</strong><br/>Critical Risk]

    style T1 fill:#c8e6c9,stroke:#388e3c,stroke-width:2px
    style T2 fill:#fff9c4,stroke:#f9a825,stroke-width:2px
    style T3 fill:#ffcc80,stroke:#ef6c00,stroke-width:2px
    style T4 fill:#ef9a9a,stroke:#c62828,stroke-width:2px
    style START fill:#e3f2fd,stroke:#1976d2,stroke-width:2px

Governance Processes¶

AI Project Lifecycle Governance¶

flowchart LR
    subgraph I["<strong>IDEATE</strong>"]
        I1[Use case proposal]
        I2[Business case]
    end

    subgraph A["<strong>ASSESS</strong>"]
        A1[Risk assessment]
        A2[Privacy impact]
    end

    subgraph DEV["<strong>DEVELOP</strong>"]
        D1[Ethics review]
        D2[Security assessment]
    end

    subgraph DEP["<strong>DEPLOY</strong>"]
        DP1[Go-live approval]
        DP2[Readiness check]
    end

    subgraph O["<strong>OPERATE</strong>"]
        O1[Monitoring review]
        O2[Incident response]
    end

    subgraph R["<strong>RETIRE</strong>"]
        R1[Retirement review]
        R2[Data disposal]
    end

    I --> A --> DEV --> DEP --> O --> R

    style I fill:#e3f2fd,stroke:#1976d2,stroke-width:2px
    style A fill:#e8f5e9,stroke:#388e3c,stroke-width:2px
    style DEV fill:#fff3e0,stroke:#f57c00,stroke-width:2px
    style DEP fill:#f3e5f5,stroke:#7b1fa2,stroke-width:2px
    style O fill:#e0f2f1,stroke:#00796b,stroke-width:2px
    style R fill:#fce4ec,stroke:#c2185b,stroke-width:2px

Stage Gate Requirements by Tier¶

Ethics Review Process¶

flowchart TB
    subgraph S1["<strong>1. SUBMISSION</strong>"]
        S1A[Project team completes<br/>Ethics Assessment Form]
        S1B[Use case, data, model,<br/>impact analysis]
    end

    subgraph S2["<strong>2. INITIAL SCREENING</strong><br/><em>3 days</em>"]
        S2A[Ethics Lead reviews<br/>for completeness]
        S2B[Determines review<br/>level required]
    end

    subgraph S3["<strong>3. REVIEW</strong>"]
        S3A[Tier 1-2: Ethics Lead<br/><em>5 days</em>]
        S3B[Tier 3: Ethics Panel<br/><em>10 days</em>]
        S3C[Tier 4: Full Board<br/><em>15 days</em>]
    end

    subgraph S4["<strong>4. DECISION</strong>"]
        S4A[Approved]
        S4B[Approved with conditions]
        S4C[Rejected]
    end

    subgraph S5["<strong>5. FOLLOW-UP</strong>"]
        S5A[Conditions verified<br/>before deployment]
        S5B[Post-deployment<br/>ethics check]
    end

    S1 --> S2 --> S3 --> S4 --> S5

    style S1 fill:#e3f2fd,stroke:#1976d2,stroke-width:2px
    style S2 fill:#e8f5e9,stroke:#388e3c,stroke-width:2px
    style S3 fill:#fff3e0,stroke:#f57c00,stroke-width:2px
    style S4 fill:#f3e5f5,stroke:#7b1fa2,stroke-width:2px
    style S5 fill:#e0f2f1,stroke:#00796b,stroke-width:2px

Policies and Standards¶

Required Policies¶

Technical Standards¶

AI Register¶

Required Information¶

Every AI system must be registered with:

Public Transparency¶

Consider publishing: - List of AI systems in use - Purpose of each system - How decisions can be contested - Contact for enquiries

Monitoring and Assurance¶

Continuous Monitoring Requirements¶

Internal Audit Program¶

Key Performance Indicators¶

Incident Management¶

AI Incident Classification¶

Incident Response Phases¶

1. Detection: Alert or report received
2. Triage: Classify severity, assign owner
3. Containment: Stop ongoing harm
4. Investigation: Root cause analysis
5. Resolution: Fix issue
6. Review: Post-incident review, lessons learned

Training and Capability¶

Training Requirements by Role¶

Capability Building¶

• AI ethics certification program
• Technical AI training
• Governance process workshops
• Lessons learned sharing

Implementation Roadmap¶

Phase 1: Foundation (0-3 months)¶

• Establish AI Governance Board
• Appoint key roles
• Develop core policies
• Create AI register

Phase 2: Operationalize (3-6 months)¶

• Implement classification system
• Deploy stage gate process
• Launch ethics review process
• Begin training program

Phase 3: Mature (6-12 months)¶

• Full monitoring implementation
• Internal audit program
• Public transparency measures
• Continuous improvement

Templates and Tools¶

Review and Updates¶