K&L Gates Analyzes AI Legality for WA Local Governments Assessing Tenders

Published
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13

Why it matters

On April 22, 2026, K&L Gates published legal guidance clarifying that Western Australian local governments may use AI to assess tenders and expressions of interest, provided AI remains a tool rather than a decision-maker. The analysis emphasizes that human judgment must retain control to satisfy statutory duties including procedural fairness, bias mitigation, conflict management, and confidentiality under the Local Government (Functions and General) Regulations 1996. The guidance aligns with Australia's December 2025 AI policy update, which permits responsible AI use in public procurement while mandating human oversight and transparency.

The Western Australian Local Government Association has issued its own tender for an AI Local Government Readiness Assessment, signaling institutional movement toward adoption. Implementation details—including specific disclosure requirements in tender documents and enforcement mechanisms—remain undeveloped. The extent to which councils will adopt K&L Gates' framework and how regulators will assess compliance are open questions.

Attorneys advising WA councils should treat this guidance as a compliance roadmap rather than a safe harbor. Any local government deploying AI in procurement should document human decision-making processes, disclose AI involvement in EOI and RFT documents, and ensure audit trails demonstrate that final determinations rest with officials, not algorithms. The framework is permissive but not risk-free; councils that treat AI as autonomous decision-making will face legal exposure under existing administrative law principles.

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