Albanese’s AI plan is admirable – but will face tech giants more powerful than most national governments

Anthony Albanese says Australia must be more than just a ‘data warehouse for AI products made overseas’ and should benefit from the country’s own innovations. Photograph: Dan Himbrechts/AAP View image in fullscreen Anthony Albanese says Australia must be more than just a ‘data warehouse for AI products made overseas’ and should benefit from the country’s own innovations. Photograph: Dan Himbrechts/AAP Analysis Albanese’s AI plan is admirable – but will face tech giants more powerful than most national governments Tom McIlroy Challenges of regulating social media or stopping hate speech show these firms can set their own terms and prices for countries like Australia Get our breaking news email, free app or daily news podcast Anthony Albanese took a trip back in time during his much anticipated speech on Artificial Intelligence on Wednesday. Seeking to harness the momentous change bearing down on our lives, the prime minister told an audience at the University of Sydney that his government would keep pace with AI, even seeking to “get out in front” of the technological tidal wave. He likened the moment to when, as a newly minted graduate, he was employed as a Commonwealth Bank clerk, charged with convincing customers to ditch paper passbooks for a keycard and a “hole in the wall”. Such is the force of change being driven by AI, Labor MPs have been hearing for months from anxious constituents, business and trade unions that it was past time for the government to get involved. Datacentre developments are already roiling local communities around the country. Albanese said he would work with state premiers on new rules to carefully manage planning controls for the massive facilities, ensuring they don’t take up land needed for housing and don’t dominate local energy systems. Operators will be required to pay for new water infrastructure needed to cool the facilities and surging demand won’t be allowed to push up household bills. After a meeting of national cabinet next month and the creation of a new office for AI within his department, Albanese will push parliament to consider new legislation in early 2027. He declared the country must be more than just a “data warehouse for AI products made overseas” and should benefit from Australian innovations. He promised new standards and speedier decision making to help foster the social licence he believes AI so badly needs. Anthony Albanese says he wants to do AI 'the Australian way' – video The approach is vintage Albanese. He believes a cautious and methodical approach has delivered better policy for Labor, even while critics accuse him of being timid and too slow. Ahead of Albanese’s speech, the former Labor minister Ed Husic, who had argued for a broad new AI act before being dumped from cabinet, warned the legal approach to AI looked like Swiss cheese. Labor, he said, must not simply deliver a “fancier cheeseboard”, urging a comprehensive response. But the reality is Australia won’t be able to direct much of the activity of global tech giants like Anthropic, Microsoft, Google or OpenAI. The challenges of regulating social media, stopping hate speech or curbing child sexual abuse images show these firms are more powerful than most national governments and can set terms, and prices, for countries like Australia. On the public’s fear of widespread job losses, Labor might be similarly hamstrung. The potential of a general use technology like AI will be pervasive across modern life. Governments simply cannot legislate or mandate use to realistically address technological progress. But one area in which Albanese has promised “the strongest possible protection” is Australia’s copyright regime. Ruling out a text and data exemption for AI proprietors, he said the work of writers, film-makers, musicians and journalists was precious and must never be on the menu for hungry AI models. “Anything less is theft,” he warned, apparently staring down companies that claim restrictions on the use of Australian content could be a barrier to billions of dollars in new investments. Such moves will protect and promote Australian culture, and livelihoods in creative industries and the media. Australia has agency and sovereignty over some of the decisions needed to manage the coming wave of AI, but pretending the government can direct much more than that would be like barracking for bank tellers in an online world. Explore more on these topics Australian politics AI (Artificial Intelligence) Datacentres Anthony Albanese analysis Share Reuse this content