What's Australia's plan for AI?

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What’s Australia’s plan for AI?

The federal government has announced it’s taking a new approach to how artificial intelligence will be regulated. It’s a tricky balancing act - on the one hand, there are concerns about AI taking jobs, the power-guzzling data centres it relies on, and copyright issues. But on the other, the government also wants Oz to be a place where tech companies can invest their money. So in this Squiz Shortcut, we’ll take a look at:

• What the issues are

• What’s in store

• And what happens next

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Squiz the Shortcut

Why am I hearing so much about AI?
Research from the Australian National University in partnership with Google recently found that almost half of Aussie adults have used AI, with most saying the technology has been handy in their jobs or for study. It’s currently in organisations across healthcare, research, education, defence, banking, the list goes on... And the way it works is evolving quickly, which is why it’s being discussed a lot.

How much do experts believe it’ll change our lives?
A few years back, the Google CEO said the impact of AI would be more profound than  ‘electricity or fire’ in terms of its potential to change society - so, bigger than the Industrial Revolution.

What’s it worth to our economy?
Experts put the figure at around $21 billion in the short term. And because the technology is advancing so rapidly, some reckon that number could skyrocket. A report from the Tech Council of Australia and Microsoft says AI could contribute as much as $115 billion a year to Australia’s economy by 2030. All that to say, it’s a huge financial opportunity for Oz if we can attract investment from big tech companies.

Are we tapping into that?
Yep… You might remember that earlier this year, the Albanese Government signed big agreements with Microsoft and Anthropic. The latter is the company behind the AI model Claude - and it wants to make Australia its second home outside of the US. 

What’s involved?
The terms of the deals include the companies building data centres here and sharing information to help Australia fend off national security threats - and Anthropic also wants to train its AI models here. We’re an attractive prospect for this because we have stable governance, lots of space and the ability to support the energy needs that come with the tech. But some major public concerns have been raised…

What’s come up?
The environmental impact of the data centres is a big issue… They’re essentially huge warehouses with rows of computers working around the clock. They need a lot of power to run their servers and water to keep the machines from overheating - it’s got many people worried that they’ll drive up electricity prices for residents and put pressure on water supplies. 

Just explain that a bit more…
The Australian Conservation Foundation’s Adam Bandt (yep, the former Greens leader) says there are forecasts that show up to 11% of grid usage in NSW alone could be data centre-driven by 2030. Bandt reckons data centres are “water hogs and energy vampires” and says utility companies are getting applications for them which could require the same amount of water used by 80,000 homes a day.

And the copyright issue?
Another debate has been raging over AI companies wanting to use Aussie content to train their AI models - that’s the process of teaching a computer to perform tasks by feeding it content, rather than writing hard-coded instructions. And by content, we’re talking about music, literature, films, news, journalism (dare we say podcasts and newsletters…) made by Aussie creators. It’s something the creative sector has been firmly against.

Talk me through it…
They argue that tech companies should have to comply with our copyright laws like everyone else and pay to use their work - otherwise it’s theft. It’s currently illegal to use copyrighted work in Oz without permission, but the next part of Anthropic’s investment here - worth around $21 billion to build data centres and train AI - hinges on “clarity” around our copyright laws… 

Are there any solutions kicking around?
Yep… Tech firms have offered to pay into a fund that would be dispersed to musicians and artists in exchange for a copyright exemption worth $350 million a year, but artists have knocked back that idea. Other ways include companies striking deals directly with the media, like Nine did with Microsoft’s Copilot system earlier this month, allowing it to use content from news sites like The Sydney Morning Herald and The Age.

What about jobs?
That’s another area of concern… There are fears that expanding AI in workplaces could lead to mass layoffs as certain roles become redundant. But just on that, the federal government published a report earlier this month looking at how Australia's job market has changed since the release of ChatGPT in November 2022, and it found the sky isn’t falling in just yet.

Go on…
It said the Aussie jobs market remains strong - but there has been a 2% weakening around jobs predicted to be most affected by the technology (like registry clerks, telemarketers and admin roles). Because of that, the ACTU is pushing for unions to have a bigger say in the rollout of AI. Secretary Sally McManus says the government must “make sure that our laws are strong enough to protect workers if there are job losses or big job losses”.

And where does the business community sit?
On the other side of the coin, the business sector and several politicians have pointed out that AI is here to stay and if we don’t embrace it, or if we over-regulate it, the nation could miss out on major investment and therefore opportunities for the economy to grow. 

So, what has the government announced?
Last week the PM outlined a national AI framework which he said was all about building Aussie confidence in AI. He said AI is "a bigger challenge and a bigger opportunity than social media" but we have to put some boundaries in place going forward. The idea is getting ahead of the risks, much like last year's social media ban for under-16yos.

Got it… What are the proposed rules around data centres?
Companies building them will have to become net energy suppliers - that means they’ll have to fund their own power supply, because as we mentioned earlier they take a lot of power out of the grid.  

What else?
The companies will also have to minimise their water use - but details are still thin on the ground so we don’t know how much water they'll be allowed to use or who’ll be responsible for enforcing limits. Up until this point, Australia has had a set of voluntary guidelines, but the new framework tightens up the rules, making them mandatory.

And what’s happening when it comes to copyright laws?
PM Albanese was clear that Aussie artists, journalists and creators need to maintain control over how they're paid for their work, saying “our laws will set that out plain as day”. As you can imagine, it was welcomed by the creative sector. 

Who will oversee the new framework?
A new Office of AI will sit within the PM’s own department - the reason being that all the major government departments work with AI, and this will streamline work on issues that cross portfolios.  

Are there plans to build our own AI model?
It doesn’t look like it… Albanese made it clear that we want big tech companies and the private sector to invest in Oz rather than us following the lead of countries like China, the UAE and France, who’re developing their own models. But not everyone agrees… The Greens think it should be a priority for us to put protections in place for our sovereignty (meaning the ability to stand on our own as a nation without external interference). 

So what’s next?
The Australian Labor Party is holding its annual conference in South Oz this week, and conversations about AI will be high on the agenda - particularly around the issue of workers’ rights. Then, next month, the PM will take his proposal to a National Cabinet meeting where he’ll nut out some of the finer details with the States and Territories - so just like the spinning circle thingy (technical term: loading spinner), there’s likely to be a lot more to process…

Onto our Recommendations

Watching: This episode of the ABC’s 7.30 features an interview with PM Albanese as well as conversations with Data Centres Australia and the Australian Conservation Foundation. It gives a good wrap of the different perspectives on the debate.

Listening: Our Squiz Series with the Minderoo Foundation delves into Aussie attitudes towards AI…

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