Australia is entering a pivotal phase in determining how artificial intelligence should be governed, as policymakers, industry leaders, and researchers remain divided over the best regulatory path forward. Treasurer Jim Chalmers confirmed that the government will commission another review into AI, focusing on a “gap analysis” of existing laws rather than immediately drafting standalone AI-specific legislation.
Proponents of this approach argue that current frameworks, including privacy, consumer protection, and competition laws, can be adapted to address the risks AI presents. This would avoid the delays and complexities of building a comprehensive AI law from scratch. However, critics warn that patching existing legislation may leave gaps in oversight, particularly around fast-moving innovations like generative AI, biometric surveillance, and algorithmic decision-making.
The debate reflects a broader global dilemma: how to balance innovation with accountability. Countries such as the European Union are pressing ahead with dedicated AI laws, while others like the U.S. lean toward sector-specific regulation. Australia’s decision could shape both its domestic tech ecosystem and its international competitiveness.
Adding urgency to the discussion, the government has linked AI adoption to national productivity strategies, including using AI tools to speed up housing approvals under a new $900 million fund. While this underscores AI’s potential benefits, unresolved regulatory questions may determine how responsibly and effectively these technologies are deployed in the years ahead.
Sources
- The Guardian – Productivity Commission considers AI and copyright law https://www.theguardian.com/technology/2025/aug/05/productivity-commission-digital-economy-report-copyright-rules-text-and-data-mining-to-train-ai-models
- The Guardian – ACTU claims of AI deal dismissed by creative groups https://www.theguardian.com/australia-news/2025/aug/21/actu-claims-of-agreement-with-tech-firms-over-training-ai-dismissed-by-creative-peak-bodies
- The Guardian – Key outcomes of Australia’s Economic Reform Roundtable https://www.theguardian.com/australia-news/2025/aug/21/key-outcomes-economic-reform-roundtable-australia
- EIN Presswire – New report reveals gaps in AI laws https://www.einpresswire.com/article/840781277/as-government-splits-on-ai-rules-new-report-reveals-critical-gaps
- CPA Australia – Public sector embraces AI but governance gaps remain https://newshub.medianet.com.au/2025/07/public-sector-embraces-ai-but-governance-gaps-remain/110469
- Allens – Harnessing AI through a new regulatory blueprint https://www.allens.com.au/insights-news/insights/2025/08/Harnessing-AI-and-data-through-a-new-regulatory-blueprint-Productivity-Commission-diverts-the-conversation
- Wikipedia – Regulation of Artificial Intelligence (Australia) https://en.wikipedia.org/wiki/Regulation_of_artificial_intelligence
- Australian Government – Law reform in the age of AI (Attorney-General’s speech) https://ministers.ag.gov.au/media-centre/speeches/law-reform-age-ai-17-10-2024
