- New South Wales is the most active in AI governance with mandatory policies since 2022, but they lack legislative enforcement and transparency on actual AI use.
- Queensland released an AI Governance Policy in 2024 and warned about data exposure risks from Microsoft Copilot, but its policy is less comprehensive than NSW's.
- Victoria adopted the national AI assurance framework without developing its own policy, while other states like South Australia focus on economic opportunity, and Western Australia, Tasmania, ACT, and Northern Territory have minimal or no public AI governance.
- There is no coordination between state and federal AI governance, creating gaps, inconsistent rights for citizens, and potential regulatory arbitrage where states may deploy AI systems the Commonwealth avoids.
- State governments deploy AI in critical services (education, health, policing, transport, child protection, housing) but governance frameworks are inconsistent, poorly documented, and lack public transparency.
- Recommended actions include legislating AI use, making AI systems public, coordinating nationally through COAG/National Cabinet, reflecting local contexts, funding enforcement, and involving affected communities.