The Australian government is preparing tough new rules to govern how federal departments and agencies use artificial intelligence in automated decision-making, as part of a broader national AI plan covering consumer protections, workplace safety and privacy. The move comes amid rapid growth in AI use and datacentre construction, with ministers seeking to build in fairness, accuracy and transparency after the illegal robodebt scheme exposed the dangers of unreliable automated processes replacing human judgement.

Attorney general Michelle Rowland will lead development of the government rules, while communications minister Anika Wells is progressing digital duty of care legislation requiring AI companies to build in safety features. A second round of privacy law reforms is also planned, alongside workplace AI safety measures. The plan follows prime minister Anthony Albanese's recent speech announcing a new office of AI and stronger protections for creatives, plus incoming rules for large datacentres from next year. Assistant minister Andrew Charlton noted Australia already has more than 200 datacentres, consuming around 2% of the energy grid, with capacity potentially tripling within a decade.