Australia creates world‑first Office of AI to regulate AI and data centres

Prime Minister Anthony Albanese announced the formation of an Office of AI within the Department of the Prime Minister and Cabinet, describing it as the first single‑nation AI framework in the world. The office will design national AI standards, coordinate policy across ministries and address issues such as job displacement, national security threats, disinformation and the ethical use of generative AI.

New legislation will accompany the office, requiring large AI‑related data centres to limit water consumption, become net producers of energy and fund renewable‑power generation and grid connections. The rules also aim to protect creators’ copyright, mandating that companies obtain consent before using books, music, art or news to train AI models.

The government says the measures will enhance Australia’s appeal to international investors by providing clearer, faster approval processes while ensuring the technology serves national interests. The Australian Academy of Science warned that reliance on offshore AI models underscores the need for sovereign capability and increased R&D investment.

Opposition and industry critics have called the plan “too late” or “more bureaucracy”, but supporters argue it balances economic growth with security, environmental and cultural safeguards.