Companies to face stiff penalties under new Australian AI safety laws

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A new AI safety regulator will enforce the Australian AI Standards, with the power to impose significant penalties on companies that breach them. The post Companies to face stiff…

The federal government will introduce laws on mandatory safety and security standards for frontier AI companies in Australia, including allowing access to models for independent testing, and reporting deadlines for any incidents.

The announcement by Prime Minister Anthony Albanese comes as the government also released the recommendations of the rapid review it commissioned after an OpenAI agent gained unauthorised access to a Medicare statistics portal in June, then waited a number of weeks before sending an email about the breach to a generic Services Australia inbox.

A new AI safety regulator will enforce the Australian AI Standards, with the power to impose significant penalties on companies that breach them. The concept sounds much like the eSafety Commissioner role.

The government hasn’t yet laid out how quickly companies must report an incident or the size of penalties.

The rules would apply to companies developing the most advanced AI models. Developers would have to secure their systems from development through deployment, identify and manage serious risks, publish their safety and security frameworks, and comply with updated rules as the technology changes.

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The government says the six obligations align with interim recommendations from parliament’s Joint Select Committee on Artificial Intelligence.

Albanese said the government chose to announce the protections ahead of international talks on AI development and investment.

“These protections will ensure we keep Australians safe and secure our national interests, while seizing the generational opportunities that AI offers,” he said.

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