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Australia to establish government AI office to coordinate regulation

By Thomson Reuters Jul 14, 2026 | 7:33 AM

SYDNEY, July 14 (Reuters) – Australia will create an office at the heart of government to manage the development of AI standards, seeking to balance ​the need to attract investment with effective ‌regulation of the disruptive technology.

The “Office of AI” will be established within the Department of the Prime Minister and Cabinet and ensure a whole-of-government approach across different ministries.

Prime Minister Anthony Albanese is ‌expected ​to announce the initiative in a ⁠major address on Wednesday ⁠in Sydney.

“Up until now, our response has been issue-by-issue, sector by sector,” Albanese is expected to say.

“But just as government developed co-ordinated approaches for other ​significant technologies: from civil aviation in the 1920s to genetics in the 1990s, we must do this ⁠with AI as well.”

The approach ⁠is a world-first and will enhance Australia’s ​appeal as a destination for AI investment by providing ​more clarity for approvals and a more streamlined compliance ‌process, Albanese is expected to say.

The announcement comes as Australia seeks to position itself as an AI leader and a global hub for data centres, while ⁠facing calls for tougher regulation as the technology spreads through the economy.

Concerns are growing that AI will lead to job ⁠losses and higher ‌energy costs, infringe on safety, security ⁠and intellectual property, and harm the environment ​through ‌the expansion of data centres that require ​vast amounts ⁠of water.

Australia currently does not have any specific AI laws, and instead relies on a range of privacy and consumer protection laws as well as a voluntary AI ethics framework.

(Reporting by Christine Chen in Sydney; Editing ​by Kate Mayberry)