Anthony Albanese has declared that Australia must be more than just a 'data warehouse for AI products made overseas' and should benefit from its own innovations, as he outlined his government's approach to artificial intelligence.
Prime Minister's Vision for AI
In a speech at the University of Sydney on Wednesday, the prime minister likened the current AI revolution to his early career at the Commonwealth Bank, where he convinced customers to switch from paper passbooks to keycards and ATMs. He said the government would keep pace with AI and even seek to 'get out in front' of the technological wave.
Albanese acknowledged that Labor MPs have been hearing from anxious constituents, businesses, and trade unions about the need for government involvement in AI. Datacentre developments are already causing local community concerns across the country.
New Rules for Datacentres
Albanese said he would work with state premiers to introduce new planning controls for massive datacentre facilities. The rules aim to ensure these facilities do not take up land needed for housing, do not dominate local energy systems, and require operators to pay for new water infrastructure to cool the facilities. Surging energy demand from datacentres will not be allowed to push up household bills.
After a national cabinet meeting next month and the creation of a new Office for AI within his department, Albanese will push parliament to consider new legislation in early 2027.
Copyright Protection and Social Licence
Albanese promised 'the strongest possible protection' for Australia's copyright regime. He ruled out a text and data exemption for AI proprietors, stating that the work of writers, filmmakers, musicians, and journalists is precious and must not be used by AI models without permission. 'Anything less is theft,' he warned.
He also promised new standards and faster decision-making to help foster the social licence that AI needs.
Challenges and Criticism
Former Labor minister Ed Husic, who had argued for a broad new AI act before being dropped from cabinet, warned that the legal approach to AI looked like 'Swiss cheese' and urged a comprehensive response, not just a 'fancier cheeseboard'.
However, the reality is that Australia cannot direct much of the activity of global tech giants like Anthropic, Microsoft, Google, or OpenAI. The challenges of regulating social media, stopping hate speech, or curbing child sexual abuse images show these firms are more powerful than most national governments and can set their own terms and prices for countries like Australia.
Job Loss Fears and Government Limitations
On public fears of widespread job losses due to AI, Labor may be similarly hamstrung. The potential of a general-use technology like AI will be pervasive across modern life, and governments cannot simply legislate or mandate use to realistically address technological progress.
Albanese's approach is described as cautious and methodical, which he believes has delivered better policy for Labor, even while critics accuse him of being timid and too slow. The government has agency and sovereignty over some decisions needed to manage the coming wave of AI, but pretending it can direct much more than that would be like barracking for bank tellers in an online world.
