NSW Government Bans AI From Making Hiring Decisions Over Bias and Accuracy Fears

The NSW Government advises against using AI for hiring decisions due to bias and error risks. AI can assist with administrative tasks but must not replace human judgment.

Categorized in: AI News Government
Published on: Jul 08, 2025
NSW Government Bans AI From Making Hiring Decisions Over Bias and Accuracy Fears

NSW Government Advises Against Using AI for Hiring Decisions

The NSW Office of the Public Service Commissioner has issued new guidelines advising government employers not to use artificial intelligence for screening or making recruitment decisions. This move addresses growing concerns about bias and the risk of AI-generated errors, often called hallucinations.

Where AI Can Be Used in Recruitment

The guidelines clarify that while AI should not replace human judgment in recruitment, it can support administrative tasks. Suitable uses include:

  • Developing recruitment documents
  • Preparing communication materials
  • Summarising candidate responses or interview notes
  • Managing high volumes of applicant inquiries
  • Scheduling interviews

However, AI must always be used transparently, with clear documentation and proper risk management in place.

Key Concerns About AI in Hiring

The primary risks highlighted involve various forms of bias. These include automation bias, where decision-makers may rely too heavily on AI outputs without sufficient scrutiny. AI tools themselves can carry inherent biases, which may unfairly affect candidates.

Video interview technologies pose another challenge by making assumptions based on emotions, personality traits, or appearance—factors that are not reliable indicators of job performance. Additionally, AI systems may produce fabricated or incorrect information, known as hallucinations, which can mislead recruiters.

Technology and Procurement Risks

The report also warns that off-the-shelf AI products might not suit every agency’s environment. What works well in one department could introduce unforeseen risks in another.

When procuring AI solutions, agencies need to carefully review marketing and contract details to ensure compliance with the NSW AI Assessment Framework. Suppliers may be reluctant to share information about how their algorithms make decisions, and limited testing can leave risks unaddressed.

For government professionals looking to understand AI safely and effectively, exploring focused training can be valuable. Resources such as Complete AI Training’s latest courses offer practical insights on responsible AI use in public service contexts.


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