The NSW corruption watchdog has warned artificial intelligence could be used to impersonate public figures ahead of a probe into the emerging technology. Artificial intelligence could increase the scale and risk of corruption and undermine confidence in public institutions, the Independent Commission Against Corruption said in a submission to a parliamentary inquiry ahead of a public hearing on Friday. Imitations of people's appearance, voice and body language, commonly known as a "deepfake" are an evolution on other deceitful techniques. "However, the rapid improvements in AI technology ... have created a novel threat because they can convincingly impersonate public figures," the commission said. The impersonations could be used for cyber-scams, spreading disinformation, or even blackmailing senior public officials. The commission notes it is not an expert and is yet to investigate any matters where sophisticated use of the technology has been used in corrupt conduct. "There are reasons to suspect that AI will play a role in the commission's future work," it said. Automated systems that mimic the behaviours of real people are likely to challenge the ability of public institutions to combat corruption, including its own, the commission said. "Advanced technology can offer a dangerous combination of opacity, anonymity, psychological distance, speed, efficiency and personalisation not seen before." Any assistance the technology could provide in fighting corruption would depend on the individual agency's abilities capturing and utilising relevant data, it said. Artificial intelligence has the potential to boost productivity but will require a clear strategy and targeted investment, the Tech Council of Australia submitted. NSW had a history of government support for the tech sector and strong foundations to be a leader in artificial intelligence, vital to remaining competitive in Australia and around the world, the council said. Its head of policy advocacy Ben Rice and policy manager Erika Ly are scheduled to appear before the inquiry on Friday morning. They will be followed on Friday afternoon by NSW Productivity Commissioner Peter Achterstraat, among other witnesses to the inquiry. The NSW Productivity Commission submitted artificial intelligence has potential to provide a decade's worth of annual boosts to the state's productivity by two per cent, and its economy by three per cent, if it is widely adopted. Australian Associated Press