The Labor government has established the Australian AI Safety Institute to evaluate emerging artificial intelligence capabilities, share information and support coordinated action to address potential risks as AI adoption expands across the economy.
The government said AI presents significant opportunities for attracting investment, improving work, boosting productivity and lifting living standards and that the country’s approach must be calibrated to maximise AI’s value while mitigating its risks.
Describing AI as rapidly evolving and touching every part of government, the economy and daily life, the government said the new institute will provide a dynamic and responsive capability to keep pace with technological change.
It’s set to work across government to support best practice regulation, advise on potential legislative updates and coordinate timely and consistent actions to protect Australians.
The government said the institute will also ensure AI companies comply with Australian law and uphold standards around fairness and transparency.
It noted that Australia already has strong and adaptive laws governing consumer rights, online safety and fair competition.
The initiative builds on the Albanese government’s recent actions to restrict deepfake pornographic content, AI “nudify” apps and undetectable online stalking tools.
Working with domestic and international partners, including the National AI Centre and the International Network of AI Safety Institutes, the new body will support global efforts to address AI risks and ensure AI development aligns with Australian values.
Its work will include technical assessments, bilateral and multilateral engagement on AI safety, and publishing research to inform industry, academia and the public.
“AI is already transforming the way we live and work,” said Minister for Industry and Innovation and Minister for Science Tim Ayres.
“Adopted properly and safely, AI can revitalise industry, boost productivity and lift the living standards of all Australians. But there are two sides to this coin. While the opportunities are immense, we need to make sure we are keeping Australians safe from any malign uses of AI.”
Ayres said the institute will provide “the capability to assess the risks of this technology dynamically over time,” adding that it will serve as the government’s hub of AI safety expertise and operate with “transparency, responsiveness and technical rigour”.
Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton said AI is already strengthening productivity and service delivery across sectors.
“That’s why we are working closely with industry, business, unions and civil society to increase the uptake of AI in a way that is safe and responsible,” he said.
Charlton said the institute will work directly with regulators to ensure the government is ready to capture the benefits of AI safely and confidently.
“The Institute will help identify future risks, enabling the government to respond to ensure fit-for-purpose protections for Australians.”
The Australian AI Safety Institute will monitor, test and share information on emerging AI technologies and risks; enhance understanding of advanced AI developments; serve as a central hub for coordinated government action; provide guidance on AI opportunity, risk and safety; and support Australia’s commitments under international AI safety agreements.
Its work will complement existing legal frameworks and it is expected to become operational in early 2026.
