PM announces new AI regulation, but key details remain unclear

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Prime Minister Anthony Albanese has announced plans to introduce Australia’s first comprehensive AI standards, promising legislation by early 2027, but many of the proposed measures remain undefined.

Speaking at the National Press Club on Wednesday, Albanese said the new framework would establish guardrails for the rapidly growing AI sector while ensuring Australia remains an attractive destination for investment.

Among the headline measures are new requirements for large AI data centres to fund the additional electricity generation and water infrastructure needed to support their operations. However, the government has released few details on how the standards will work in practice.

On Thursday, Mr Albanese clarified that the requirements would apply only to future data centre proposals, not facilities already under construction.

“This … will be for new proposals. You can’t retrofit,” he told ABC Radio Sydney.

“Many of the centres which are (already) under construction tend to be smaller ones. What we’re talking about here is very large data centres, need to be in appropriate locations, need to make sure they add energy to the grid,” he said.

“One would hope that was something that was considered prior to approval by state and territory governments already.”

Beyond infrastructure, the Prime Minister also pledged stronger protections for Australian copyright holders as AI systems become increasingly capable of generating content.

“Let me make this crystal clear: not everything produced in Australia is up for grabs,” he said.

“Australian writers, musicians, artists and journalists must retain ownership and control of their work.

“Our laws will spell that out, plain as day.”

While the announcement signals the government’s intention to regulate AI more closely, many of the practical details – including how the new standards will be enforced, which AI systems will be covered and what obligations developers will face – are yet to be released. The government is expected to consult with industry before introducing legislation.

At the same time, Albanese stressed that stronger regulation should not come at the expense of investment, arguing Australia must remain competitive as global technology companies expand their AI infrastructure.

He said the government wanted Australia to be a destination for large-scale AI investment, provided companies operated within clear rules that protected consumers, creators and critical infrastructure.

The announcement comes as countries around the world move to establish AI governance frameworks, balancing the technology’s economic opportunities with growing concerns over energy use, intellectual property, misinformation and public trust.