Photo by Nahrizul Kadri on Unsplash
The federal government has paused its mandatory guardrails for AI development and deployment announced in September last year and released a National AI Plan to to lift productivity and competitiveness.
The plan sets out a pathway for Australia to be a developer and adopter of trusted, world-class AI solutions.
It aims to create the right environment for investment, innovation and adoption, and to grow our national capabilities in AI technology.
Today’s announcement is backed by $29.9 million to establish the AI Safety Institute in early 2026 to ensure that the government is monitoring and responding to risks, supporting agencies and regulators.
Science minister Tim Ayres said the National AI Plan is about making sure technology serves Australians, not the other way around.
“AI will help close gaps in essential services, improve education and employment outcomes and create well paid jobs in future industries," he said.
“Guided by the plan, the government will ensure that AI delivers real and tangible benefits for all Australians.
“As the technology continues to evolve, we will continue to refine and strengthen this plan to seize new opportunities and act decisively to keep Australians safe.”
Dr Rebecca Johnson, AI ethicist in the school of history and philosophy of science at the University of Sydney, said the “tech-neutral approach” is not enough regulation. There is a need for greater safety measures that account for the autonomous role of AI agents.
“The National AI Plan puts a strong focus on economic opportunity, but it is surprising to see the government rely on existing, tech-neutral laws at the very moment AI is shifting from static chatbots to AI agents that can act in the world,” she said.
“It’s like trying to regulate drones with road rules: some parts apply, but most of the risks fly straight past.
“AI agents don’t just generate text; they carry out tasks. They can book flights, move money, update calendars, make decisions at machine speed, and interact with other systems without checking back with the user. That is a fundamentally different safety landscape.
“Australia can absolutely benefit from AI, but we cannot pursue opportunity while overlooking unprecedented risk. Our people, our society and our democracy matter more than short-term economic gains. Safety needs to lead, not follow."
Dr Armin Chitizadeh, artificial intelligence expert in the school of computer science at the University of Sydney, said the plan is a “promising first step”.
However, he said it could be improved for risk mitigation, moving from a reactive response to to a preventative strategy that follows other global frameworks to prioritise safety.
“The plan includes some funding to address potential risks, but this area is not prioritised. Many in the AI field follow the mindset of ‘build first, fix later’,” he said.
“Unfortunately, this does not work for AI.
“AI systems are far more complex than most human-made designs, including skyscrapers or aircraft engines. If we develop it without careful planning and robust safety measures, we may not be able to make it safe afterwards.
“That said, the challenge is not solely Australia’s to solve. AI safety requires global cooperation, much like climate action.
“Australia could help lead by proposing an international framework – similar to the Paris Agreement on climate change – perhaps a ‘Canberra Agreement’ focused on AI risk mitigation."
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