Australia launches parliamentary inquiry into AI adoption and regulation

The Australian Parliament has established the Joint Select Committee on Artificial Intelligence to investigate the economic opportunities and barriers associated with AI technology. A primary focus of the inquiry is the rate of AI adoption among small and family-owned businesses, as current data suggests enterprise-grade AI tools are being concentrated among larger firms. Addressing this gap is seen as vital for national productivity, with the Productivity Commissioner suggesting properly harnessed AI could increase labor productivity by 4% over the next decade.

Simultaneously, Australia’s major political parties, Labor and the Coalition, are moving toward a bipartisan consensus on AI regulation. This alignment aims to secure international tech investment and prevent a populist backlash against the construction of data centres, a stance the Coalition argues is necessary to maintain national security and economic growth. Lawmakers expressed concern that failing to support infrastructure could lead to a reliance on foreign models, specifically citing the need to remain competitive against Chinese technological influence.