Australian Prime Minister Anthony Albanese announced a new federal Office of AI and defended his government’s plan to regulate the technology while still encouraging investment. He argued that AI will reshape parts of the economy and workforce, so the government must set rules now rather than react later, with a focus on protecting jobs, copyright and critical infrastructure. The move matters because it signals a more co-ordinated national approach to AI in Australia, at a time when concerns are growing about automation, disinformation and the environmental cost of data centres.

The office will sit within the Department of the Prime Minister and Cabinet, and Albanese said legislation and national standards should follow early next year. He also said large AI data centres would be expected to secure their own power and water, cover grid connection costs, use resources efficiently and avoid pushing up household energy prices. The plan was broadly welcomed by some technology and creative industry groups, but critics said Labor had acted too slowly and still needed to provide clearer detail on enforcement, worker protections and copyright rules.