Building on the National AI Plan’s objectives, the Commonwealth Government will establish a set of Australian Standards for AI, which are expected to include a single regulatory framework for large data centres, along with possible strengthened copyright protections and a new Office of AI.

The Commonwealth Government has set out plans to legislate standards for data centres, ensure that creative works are protected by copyright, and support consumer safety.

These plans align with, and build upon, some of the key objectives set out in the Commonwealth Government’s National AI Plan, published last December, and the Commonwealth Government’s previously announced position against a text and data mining exception to copyright infringement.

Three objectives of the National AI Plan are to: (1) capture AI opportunities through investment in smart infrastructure; (2) equitably share the benefits of AI including by supporting and training Australians to thrive in an AI-enabled economy; and (3) keep Australians safe and mitigate the potential harms of AI.

The key takeaways from the Government’s announcements this week are as follows: 

1. New National Regulatory Framework for AI Data Centres 

The Prime Minister announced the establishment of a set of Australian Standards for AI, which will provide a clear regulatory framework for data centres and AI training. 

These AI standards are proposed to be a mandatory national framework that will apply across all states and territories. They will legislate the Commonwealth Government’s previously announced expectations for large AI data centres and will include legal obligations for large AI data centre operators and developers to:

• underwrite any new power supply for the data centres, including to pay the full amount of connection costs of power to the data centres;
   
• reduce power use when needed to strengthen the grid;
   
• build new renewable energy generation capability; 
   
• ensure water efficiency and pay for additional required water infrastructure; and
   
• ensure that the data centres are net energy generators that put at least as much energy into the grid as they take from the grid. 

In addition, the Government has indicated that the AI standards will include clear rules for where large AI data centres can be built.

The Government expects to legislate the AI standards early next year, with consultation with Premiers and Chief Ministers to occur at National Cabinet next month.

2. Strengthen copyright and artist protections

The Prime Minister has also announced that the Government will ensure the ‘strongest possible protection for Australian artists and media’ and ensure that ‘Australian writers, artists and journalists retain ownership over their work’.

Noting that the Government is already conducting consultations on AI policy and copyright, the outcome of such consultations may result in reforms to the Copyright Act 1968 (Cth).

3. Creation of a New Office of AI

The Prime Minister also announced the establishment of the Office of AI, in the Department of the Prime Minister and Cabinet. 

The Office of AI will work closely with the Minister for Industry and Innovation, and the Assistant Minister for Science, Technology and the Digital Economy, to oversee the development of the Australian Standards for AI, accelerate the national implementation of the standards and facilitate a whole-of-government approach.

4. Ensuring Consumer Safety 

The Government published a media release following the Prime Minister’s speech stating that the Government will outline its ‘whole-of-government AI consumer safety priorities’ in the coming weeks building on the newly established AI Safety Institute, as foreshadowed by Dr Andrew Charlton, Assistant Minister for Science, Technology and the Digital Economy, in a speech to the AI Safety Forum earlier this month.

In his speech, the Assistant Minister outlined that the Australian Government is taking a two-tiered approach to AI risk, distinguishing between:

(a)  near-term, everyday harms, such as online safety and automated decision-making; and 

(b) frontier, structurally novel risks, including autonomous AI systems with less human oversight or AI misalignment, where AI systems follow goals that were not originally intended.

While no specific announcements have been made regarding legislative reforms on this front, the Assistant Minister reiterated that the Government is taking a whole-of-government approach to AI regulation, with existing regulators addressing AI risks within their sectors. As such, further targeted reforms may arise as required to respond to issues raised by regulators.

5. Instrument for job creation and support 

On the impact of AI on employment, the Prime Minister referenced the Department of Employment and Workplace Relations’ recent data-driven analysis which indicates that  while some roles are changing, graduate employment is high and software and tech jobs are growing.

The Prime Minister also stated that there was ongoing consultation between the Employment Minister, employers, workers and unions regarding AI’s role in the workplace. Again, no specific announcements were made, but we expect further policy and potential regulatory developments on the work place front, in connection with the adoption of AI across Australian businesses and Government sectors.

While the Commonwealth Government’s recent announcements are not surprising, given they generally align with the key objectives of the National AI Plan, large AI data centre operators and developers should begin preparing for greater regulatory oversight, particularly in relation to data centre approvals, energy production and use and water efficiency.  In addition, AI developers may want to prepare for possible copyright reform, as well as the establishment of additional AI governance and safety standards.