Australian AI Update
On 15 July 2026, Australian Prime Minister Anthony Albanese delivered a keynote speech in Sydney titled "AI in Australia's interests", setting out the Australian Government's new policy direction on artificial intelligence.
This is a significant shift in Australia's approach to AI governance which previously focused on voluntary instruments such as the AI Ethics Principles (2019), the Voluntary AI Safety Standard (2024) and the Guidance for AI Adoption (October 2025) and was light on regulatory and legislative reform, instead relying on existing frameworks with a move away from regulation: the Productivity Commission's August 2025 interim report recommended against mandatory guardrails, favouring existing technology-neutral laws to avoid chilling innovation.
This change in policy reverses that trajectory. The move from voluntary standards to a mandatory, whole-of-government framework with a dedicated Office of AI, National Cabinet consideration next month and legislation expected early next year all signalling that the Government has concluded that AI requires purpose-built regulation. For businesses operating in or into Australia: enforceable, AI-specific obligations are on the horizon.
The key takeaways are:
- the establishment of a new set of mandatory Australian AI Standards, bringing economic, social, national security and environmental dimensions within a single national framework, which include a suite of specific policy commitments on copyright protections, data centre obligations and fast-tracked approvals for data centres;
- the creation of a new Office of AI within the Department of the Prime Minister and Cabinet to coordinate the design of those standards; and
- the Government continues to rule out a text and data mining exemption.
Australian AI Standards
The centrepiece of the announcement is the establishment of a mandatory set of national AI Standards which the Government says will make Australia the first country in the world to bring the economic, social, national security and environmental dimensions of AI within a single framework.
The AI Standards will reflect the expectations the Australian Government announced in March 2026 for large AI data centres and will include obligations on data centre operators such as requiring operators to:
- underwrite new power supplies including renewable energy and not pass these costs on to consumers;
- be net generators of energy;
- pay for connections to the power grid and for any additional water infrastructure required to support operations; and
- minimise water usage and maximise energy efficiency.
The Prime Minister will seek agreement on the national AI Standards at the National Cabinet meeting next month and introduce legislation in Parliament early next year. This will introduce a coherent and comprehensive framework capable of addressing the full breadth of issues that AI presents.
Copyright and artist protections
The Prime Minister declared the Government's intent to protect Australian artists and media, and their rights to retain control and ownership of their works. Australian works cannot be used to train AI systems without the artist's control, including over the price and value of their work; anything less, the Prime Minister stated, amounts to theft. No further details were given on what this type of arrangement will look like under the new standards, but the Attorney General has been continuing consultation with stakeholders on copyright and artist protections in the context of AI, and the Government continues to rule out a text and data mining exemption.
Office of AI
Effective 15 July 2026, a new Office of AI has been established within the Department of the Prime Minister and Cabinet. The Office will be responsible for coordinating the design of the new Australian AI Standards, bringing together the work of relevant agencies and ensuring a whole-of-government, cross-portfolio approach to the development of the framework and the use and development of AI in Australia.
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