The Albanese government is preparing to unveil its long-anticipated National AI Plan. Rather than introducing a stand-alone law for artificial intelligence, it will take a flexible, case-by-case approach intended to manage long-term risks to productivity and employment while attracting international investment.
The shift marks a change from Labor’s earlier discussions under its previous industry leadership. At that time, there had been stronger consideration of broad legislation. Now, the government is choosing to build AI regulation into existing legal and regulatory systems. The newly created AI Safety Institute, located within the Department of Industry, Science and Resources, will play an advisory role but will not have enforcement powers.
The plan has drawn mixed reactions. Business groups, including leading corporate lobbyists, have warned that early over-regulation could slow innovation and limit the potential of AI. Unions that previously backed a dedicated AI law appear more open to the current proposal, particularly due to the establishment of the advisory body, but they remain concerned about the institute’s lack of enforcement authority and AI’s potential impact on jobs.
The broader strategy seeks to position Australia as a leader in the Asia-Pacific for technology investment. It includes measures to attract multinational investment, promote local innovation and ensure new data centres are energy self-sufficient to help safeguard the power grid. However, opposition parties argue that the government is increasing regulatory burdens in other areas, pointing to recent data highlighting more regulation and rising compliance costs.
Although the National AI Plan is presented as a balance between innovation and oversight, there are still questions about whether this limited regulatory model can fully address the complex risks posed by rapidly advancing AI technologies. It remains to be seen whether more comprehensive reform will become necessary in future.
