Prime Minister Anthony Albanese will announce the creation of a new Office of AI within his department, aiming to fast-track approvals for datacentres and shore up AI investment. In a major speech on Wednesday, Albanese will declare Australia the first country worldwide to bring economic, social, national security, and environmental issues from AI under a single office.
Streamlined Approvals for AI Projects
The federal government will introduce faster approval processes for AI projects, including datacentres, across Australia. Albanese says this will enhance investor certainty and maintain community confidence in the rapidly advancing technology. "Getting this right will enhance our appeal to international investors, by delivering greater clarity and speed for approvals, and a streamlined process for verifying compliance," he will tell an event.
National AI Framework
The new Office of AI, established within the Department of the Prime Minister and Cabinet with immediate effect, will design Australian AI standards and coordinate cross-government work. It will work with Minister for Industry and Innovation Tim Ayres and Assistant Science and Technology Minister Andrew Charlton. The speech comes as Labor grapples with AI's societal impact, including concerns about datacentre infrastructure, energy systems, and intellectual property protection for Australian creators.
AI in Government Services
AI platforms are already preparing for a significant expansion of the government's GovAI service, which drives secure and ethical AI adoption in the public service. The finance department recently launched a multi-stage procurement process, asking industry to develop new tools for service delivery and policymaking, including AI chat for boosting efficiency.
Coordinated Approach Needed
Albanese will compare AI's development to that of civil aviation in the 1920s and genetics in the 1990s, requiring a coordinated government approach. He will point to ongoing work on national security risks, with the newly released national defence strategy labeling AI and machine learning as holding "the most significant potential for technological disruption" facing Australia. "We know that both extremists and state actors already use AI to create propaganda aimed at young people, and to spread disinformation that targets democracies," he will say.
Copyright and Investment Concerns
Ayres said on Tuesday that the speech would address AI companies' concerns about Australian copyright laws and their desire to use Australian content to train large models. Ahead of meetings with senior cabinet ministers, AI giant Anthropic cited Australia's policy uncertainty as a major impediment to new investments. "Tomorrow, the prime minister will have something to say about all of this," Ayres said. "We have made it very clear as a government that there won't be a text and data mining exception in Australia, but we are working hard to secure these investments because they are in the Australian national interest."
Climate Concerns
Climate Council Chief Executive Amanda McKenzie called on Labor to align datacentre expansion with climate action. "Datacentres are hungry for energy," she said. "Governments must proactively manage the surging demand, making sure that they are powered with clean renewable power. If they don't, there is a big risk that they will push up pollution from coal and gas at a time when we're already living through more frequent floods, and ferocious fires."
