11 December, 2025
australia-s-ai-strategy-economic-focus-over-standalone-legislation

The Albanese government has opted against enacting standalone legislation to manage artificial intelligence (AI), instead unveiling a national roadmap that highlights the economic opportunities of AI. This plan includes strategies to “unlock” vast datasets held by both private companies and the public sector, aiming to enhance AI model training.

Launched on Tuesday, the National AI Plan outlines key initiatives such as supporting and reskilling workers impacted by AI, increasing investment in data centers, and ensuring the productivity benefits are shared across the economy. However, the document also raises concerns about the significant resources consumed by data centers, the potential for AI-facilitated abuse targeting women, and unresolved copyright issues affecting artists, writers, and journalists.

Economic Opportunities and Worker Support

Rejecting the European Union’s approach of a standalone AI act, the government believes existing legislation can adequately address the rapid advancements in AI technology. According to Tim Ayres, Minister for Industry and Science, the plan is designed to capture AI’s economic potential while maintaining safety and equity for Australians.

“This plan is focused on capturing the economic opportunities of AI, sharing the benefits broadly, and keeping Australians safe as technology evolves,” Ayres stated. He emphasized the potential for AI to improve sectors such as health, disability, aged care, education, and employment, ultimately creating new jobs.

The plan is supported by a $30 million commitment to establish an AI Safety Institute next year, which will provide guidance on the technology and assess the need for future legislation. Ayres highlighted that success would be measured by how widely AI benefits are distributed, how inequalities are reduced, and the level of support provided to workers.

Balancing Innovation with Ethical Concerns

As unions express concern over AI potentially replacing human jobs, Ayres reassured that technology should enhance workers’ abilities rather than replace them. He committed to ongoing consultations with unions and businesses regarding AI’s integration into workplaces.

The government aims to position Australia as a leading destination for AI investment, leveraging local strengths in data centers, academic research, and AI employment. Despite this ambition, the government has resisted calls for a text and data mining exemption for AI companies, which would allow them to train models using copyrighted material.

“The government is monitoring the development and deployment of AI and will respond to challenges as they arise, and as our understanding of the strengths and limitations of AI evolves,” the plan stated.

Data Utilization and Environmental Considerations

The plan outlines efforts to “unlock high-value datasets for pilot AI use cases” from both public and private sources. Government sources indicate these plans are in early development, with potential for new licensing schemes or compensation mechanisms. Non-sensitive public datasets, such as those from the Bureau of Statistics, could be made available to AI companies.

“AI models are only as good as the data they are trained on. Australia has high-quality and comprehensive data sets that could support AI innovations that create value for the AI sector, can deliver public goods, and that better reflect the Australian context,” the plan stated.

Additionally, the plan acknowledges the need for new renewable energy and efficient cooling technologies for data centers, which consumed about four terawatt-hours of power in 2024—approximately 2% of grid-supplied power. This consumption is expected to triple by 2030, necessitating advancements in cooling technology to reduce water usage.

As Australia navigates the complexities of AI integration, the government’s roadmap prioritizes economic growth while addressing ethical and environmental challenges. The coming years will determine how effectively these strategies balance innovation with societal impacts.