ByAlexandra SmithSeptember 29, 2025 — 12.00amSaveLog in,registerorsubscribeto save articles for later.Save articles for laterAdd articles to your saved list and come back to them any time.Got itNormal text sizeLarger text sizeVery large text sizeThe NSW Labor government and the competition watchdog will use artificial intelligence to process massive amounts of data relating to contracts for public projects in a bid to identify suspicious patterns of collusion between companies bidding for lucrative tenders.The Minns government and the Australian Competition and Consumer Commission will form a new partnership to stamp out illegal “bid-rigging”, by which companies collude to raise prices on government contracts.NSW Treasurer Daniel Mookhey says a new partnership with the ACCC will help stop bid-rigging.Credit:Sitthixay DitthavongThe new partnership, to be announced on Monday, is a direct outcome of discussions at the Commonwealth treasurer’s Economic Reform Roundtable last month.NSW will use AI to analyse the huge amounts of contract documents, submissions and tender data that the government receives as part of its procurement processes.The state government will share that data and information with the ACCC to identify suspicious patterns that may indicate collusion between companies bidding for tenders.A global study by the Organisation for Economic Co-operation and Development has estimated that improving competition and stopping collusion could save governments as much as 20 per cent on contracts.The NSW government spends more than $42 billion each year on goods, services and construction and it says being able to identify where large companies are colluding to raise prices or reduce the quality of products will help deliver better projects.Bid-rigging, which is illegal, can be difficult to identify. Suppliers who are found to be engaging in cartel conduct could be prosecuted by the ACCC and suspended from being considered for contracts with the NSW government.The ACCC says common tactics used in a bid-rigging cartel include a company not bidding at all, bidding above an agreed amount, including terms and conditions that they know the client will not accept, withdrawing a winning bid and taking turns at winning bids.AdvertisementCombating bid-rigging through data-sharing and screening tools has had an impact in otherOECD countries. In South Korea, its cartel screening tool flags, on average, 80 cases a month, according to the NSW government.Between 2018 and 2021, 26 investigations in South Korea led to fines totalling about $A15 million.NSW Treasurer Daniel Mookhey said partnering with the ACCC to deploy world-leading technology would deter would-be conspirators.Loading“There are many good operators in NSW and those are the companies we want to do business with,” Mookhey said. “This agreement is designed to neutralise bid-rigging and other cartel conduct so that we can get the best outcomes for NSW taxpayers.”ACCC chair Gina Cass-Gottlieb said working with all levels of government to prevent government procurement processes would help stop cartel conduct.“Cartel arrangements, such as bid-rigging, often inflate costs for consumers or other businesses and are a serious breach of the law,” Cass-Gottlieb said.“Enforcing cartel laws is an ongoing priority for the ACCC. Any business or individual that attempts to enter collusive agreements with competitors risks significant penalties.”Cut through the noise of federal politics with news, views and expert analysis.Subscribers can sign up to our weekly Inside Politics newsletter.SaveLog in,registerorsubscribeto save articles for later.License this articleNSW State ParliamentFor subscribersAlexandra Smithis the State Political Editor of The Sydney Morning Herald.Connect viaTwitteroremail.Loading