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NSW Strikes ACCC Deal to Use AI Against Bid‑Rigging in Government Tenders

NSW will share procurement records for ACCC algorithmic screening to deter cartels, aiming to reduce contract costs.

Overview

  • Treasurer Daniel Mookhey announced the partnership, under which the state will provide vast troves of procurement data to the ACCC.
  • The watchdog will use algorithms to identify suspicious bidding patterns and refer flagged cases to human investigators for potential prosecution.
  • Officials frame the move as a value‑for‑money measure for the A$42 billion in annual NSW procurement spending, citing OECD findings that curbing collusion can cut contract costs by up to 20%.
  • ACCC chair Gina Cass‑Gottlieb said cartel enforcement remains a priority and warned businesses face significant penalties and possible suspension from NSW contracts.
  • The program follows similar efforts in South Australia and draws on international precedents such as South Korea’s screening tool, and it fits within NSW’s broader push to embed AI across government.