The federal government’s National AI Plan has faced criticism for its lack of robust regulatory measures.
Unveiled on Tuesday and in development since 2024, the plan was originally intended to incorporate rules designed to mitigate public concerns regarding artificial intelligence. However, the government has opted against implementing mandatory regulations proposed by former industry minister Ed Husic last year and is instead relying on existing legislation to manage the rapidly evolving technology.
“This plan betrays us all by abandoning AI guardrails,” said Greens Senator David Shoebridge. “Australians deserve real protections, not glib assurances that pretend our existing laws are up to the task of this new tech.”
In contrast, the plan has garnered support from the Business Council of Australia, which views it as a strategic framework for maximizing the benefits of AI. “The National AI Plan charts a clear direction for how Australia can embrace AI to boost productivity, sharpen our competitiveness, and raise living standards,” stated the council’s chief executive, Bran Black. “It identifies where domestic capability can be built, the skills we will need in the workforce, and how innovation can be accelerated across the economy.”
The National AI Plan comprises four main objectives: growing investment, strengthening AI capabilities, enhancing Australians’ AI skills, and securing economic resilience. It also details steps for integrating AI into public services, including embedding the technology within the GovAI platform, piloting generative AI in schools, and improving the digital skills of public service employees. The plan outlines initiatives aimed at accelerating investment in the infrastructure necessary to support AI advancements.
“Our National AI Plan is a whole-of-government framework that ensures technology works for people, not the other way around,” said Minister for Industry and Innovation Tim Ayres. “The plan will guide government, industry, research, and communities to work together so that no one is left behind.” Ayres added that the government intends to bolster local innovation and ensure that Australian workers and businesses are well-equipped to thrive in the global digital economy.
A newly established oversight body aims to address AI-related risks and harms. The Australian AI Safety Institute, which will operate at a cost of nearly $30 million, is expected to provide expert capabilities for monitoring, testing, and disseminating information on emerging AI technologies, according to the Department of Industries, Science and Resources. Operational by early 2026, the institute’s responsibilities will include keeping the government informed about rapid developments in AI, enhancing understanding of advanced AI and its potentials, and advising businesses on AI opportunities and risks.
“The institute will be the government’s hub of AI safety expertise,” Ayres remarked. “It will operate with transparency, responsiveness, and technical rigor to ensure Australians can confidently utilize this transformative technology.”
Nevertheless, some experts warn that the watchdog could become ineffective, particularly if Australia relies on foreign-developed AI models. Simon Kriss, CEO of Sovereign Australia AI, emphasized the need for assurance that the AI models used by Australian businesses comply with local laws and that no sensitive data leaves Australian territory. “For Australian businesses to begin to trust in and adopt AI, we must be assured that the models we use are built under Australian law,” Kriss stated.
The National AI Plan, while ambitious in its goals, faces significant scrutiny regarding its implementation and the adequacy of its safeguards. As AI technologies continue to evolve at a rapid pace, the effectiveness of the proposed oversight mechanisms will be critical in shaping the future landscape of AI in Australia, and in ensuring that it serves the public good without compromising safety or ethical standards.
See also
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