Labor’s answer on AI: make it fit for business
The Albanese government has sided with business over unions in a major AI policy backflip that could reshape how Australia regulates artificial intelligence technology.
Labor has sided with business in releasing an artificial intelligence strategy light on detail and with no new regulations, in a repudiation of the approach previously advocated by unions and former industry minister Ed Husic.
The National AI Plan to be launched by Industry Minister Tim Ayres on Tuesday has rejected the need for a stand-alone AI Act, with the technology to be regulated through existing frameworks based on the advice from a new AI Safety Institute.
The government used the report to commit to co-ordinating data centre approval processes with states and territories, which includes forcing developers to bring new renewable energy online amid expectations electricity use from the infrastructure will triple by 2030 and put pressure on the grid. It will also force data centre developers to adopt efficient cooling technologies to limit water use and ensure the growth in AI “supports sustainability, strengthens energy security, and drives investment in clean technologies”.
The blueprint focuses on ensuring Australian workers have the skills for the growth in AI, while backing a new round of grants to accelerate local development of AI solutions while connecting researchers with industry.
“With the right conditions, significant homegrown global businesses can emerge to create bespoke models and applications,” the report says.
The 37-page report contains many motherhood statements and describes what the government is already doing to develop AI, with the biggest development being the omission of heavy-handed regulations that could have deterred investment.
The report said local superannuation funds had an “important role to play in growing the AI sector”. While business has backed the strategy, there are concerns the report opens the door to regulating the technology through new industrial relations laws.
Industry Minister Tim Ayres and Assistant Technology Minister Andrew Charlton used the forward of the report to declare that success in the growth of AI would be measured by “how workplace rights are protected”.
“AI should enable workers’ talents, not replace them,” they wrote. The ministers said the technology would close service gaps in disability, health and aged-care services, while improving education and employment outcomes. They said AI was a key pillar of the Future Made in Australia agenda that would “create secure, well-paid jobs in future industries”.
“By building sovereign capability in AI, supporting local innovation and ensuring that Australian workers and businesses are equipped to lead in the global digital economy, we are laying the foundations for a more resilient and competitive Australia,” they said.
ACTU assistant secretary Joseph Mitchell welcomed the “government’s commitments to ensuring our workplace laws are fit for purpose in the AI age”.
While the ACTU last week dropped its demand for a stand-alone AI Act, the union movement had fiercely advocated for one just a few months ago.
In a report in September, the ACTU lashed out at the Productivity Commission for rejecting the need for “economy-wide regulation to manage the risk of social harm posed by the misuse of AI”. “Australia needs a dedicated AI Act and a well-resourced regulator capable of addressing the unprecedented risks of AI in a comprehensive and timely manner,” the ACTU submission said.
The Australian understands the Finance Sector Union will push for more protections for workers than are outlined in the report. Business Council of Australia chief executive Bran Black said the government’s plan “charts a clearer direction for how Australia can embrace AI to boost productivity, sharpen our competitiveness and raise living standards”.
“It identifies where domestic capability can be built, the skills we will need in the workforce, and how innovation can be accelerated across the economy,” he said.
“Striking the right regulatory balance is essential, and we must ensure existing protections remain fit for purpose without erecting barriers that make Australia a slower or less attractive place to innovate.”
The pro-business language of the new blueprint is a departure from the tone the Labor set in the last term of parliament under the leadership of Mr Husic. Mr Husic, who was dumped from cabinet in a post-election factional stoush, has backed a stand-alone AI Act.
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