A Primer on Agile Procurement and Investment Assurance: A Pathway to Generative AI in NSW Public Sector

The intersection of ICT and digital sourcing transformation, bolstered with investment assurance has emerged as a critical enabler of innovation within the public sector. Mark Lenzner, Executive Director for ICT and Digital Sourcing, and Jessica Ho, Director of Investment Assurance at Digital NSW provided valuable insights at our recent NSW Government Innovation Showcase, raising how agile procurement processes and robust investment assurance frameworks work together and are essential in fostering the adoption of emerging technologies like generative AI. This synergy not only accelerates innovation but also ensures that it is inclusive, ethical, and aligned with public sector values.

The Role of Agile Procurement in Driving Innovation

Agile approaches to the sourcing of ICT and digital solutions are now inarguably necessary to keep pace with rapid market shifts and technological advancements. Traditional procurement methods, often burdened by rigidity, are insufficient to meet the demands of a fast-evolving digital landscape. Agile procurement, in contrast, supports iterative development, encourages close collaboration with suppliers, and promotes data-driven decision-making, all of which are crucial for transforming new ideas into valuable solutions.

This approach is particularly relevant in the context of emerging technologies like generative AI. The dynamic and evolving nature of AI systems requires procurement processes that can adapt quickly, allowing for continuous refinement and integration of new capabilities. By implementing frameworks that support agile procurement, the public sector can foster an environment where innovation thrives, enabling the development of advanced AI applications that can address complex societal challenges.

Investment Assurance: Balancing Innovation with Risk Management

While agile procurement lays the foundation for innovation, investment assurance plays a pivotal role in ensuring that such innovation is both ethical and effective. This is where the importance of governance structures like the AI Review Committee in New South Wales stand out, which provide oversight and guidance on AI projects. This committee's role is not to stifle innovation but to ensure that AI applications, such as educational chatbots or infrastructure assessment tools, are developed and deployed with a clear understanding of ethical implications and privacy concerns.

For instance, in the Asset AI project, which uses AI to identify road maintenance needs, the committee's advice on camera placement was crucial in addressing privacy risks. Such proactive measures ensure that AI technologies serve the public good while maintaining public trust. This balance between innovation and risk management is essential for the responsible adoption of generative AI in the public sector.

Synergising Agile Procurement and Investment Assurance for AI Innovation

The interplay between agile procurement and investment assurance creates a robust framework that enables the public sector to harness the full potential of generative AI. By streamlining procurement processes and embedding risk management into the innovation lifecycle, public sector organisations can develop AI solutions that are not only cutting-edge but also aligned with ethical standards and public expectations.

This synergy is crucial as the public sector prepares for the broader impact of AI, fuelling Important considerations about the future, such as managing the volume of citizen-generated communications through AI and ensuring the authenticity of sentiment data. Addressing these challenges requires a forward-thinking approach that integrates agile procurement with vigilant investment assurance, ensuring that AI-driven innovations contribute positively to public services.

NSW's Digital Future

As the public sector increasingly embraces digital transformation, the collaboration between agile procurement and investment assurance becomes vital in enabling innovation. Work and insights from Mark Lenzner and Jessica Ho underscore the importance of adopting flexible procurement strategies and robust governance frameworks to navigate the complexities of emerging technologies like generative AI. Never forgetting to unite this approach, the New South Wales government is poised to drive digital transformation, foster social development, and build a more inclusive, resilient future.