Prime Minister Anthony Albanese has outlined the Federal Government’s vision for artificial intelligence, announcing plans to establish a national framework for AI standards aimed at supporting investment, protecting Australian creators and strengthening the country’s economic resilience, while also highlighting opportunities for advanced manufacturing and sovereign capability.
Speaking at the University of Sydney, Albanese said Australia should take an active role in shaping the development and deployment of AI rather than simply adopting technologies developed elsewhere.
“The question that matters, the choice that we have, is how,” Albanese said. “How we apply our enduring values of fairness and opportunity to make this technology work for us.”
He argued that Australia should focus on building AI capability domestically, saying the country should be involved in designing, developing and deploying the technology to support economic resilience and national sovereignty.
“Not just adopting or accommodating AI. Designing it, making it, building the capability right here. And building our sovereignty – and our economic resilience as a result,” the Prime Minister said.
Albanese said the government wants AI to “support and create good jobs, not replace them,” adding that Australia has competitive advantages including skilled workers, research institutions, renewable energy resources, critical minerals and political stability.
Drawing parallels with the government’s Future Made in Australia agenda, he said the same ambition should be applied to AI development.
“Just as our Government’s Future Made in Australia agenda is about making the most of these national strengths… we must bring this same ambition to the opportunities of AI,” he said. “We cannot settle for a short-term boom in capital expenditure and construction. We must create a new generation of good, secure jobs for our economy.”
He also said Australia could play a larger role in industries including cybersecurity, biotechnology and advanced manufacturing, arguing the country should have “more of a stake in where AI is made – and how it is made.”
As part of the announcement, Albanese said the government will establish Australian Standards for AI, bringing large AI data centres under a single mandatory national regulatory framework covering issues including planning, energy, water use and infrastructure.
The proposed framework will be taken to National Cabinet next month, with legislation expected to be introduced to Parliament early next year following consultation with industry and trading partners.
The Prime Minister said the framework is intended to provide certainty for investors while ensuring projects align with Australia’s national interests.
“This is about building Australians’ confidence and trust in AI and our nation’s capacity to manage it,” he said. “Ensuring that our national interests and our national security are protected. And providing the certainty for growth, for jobs and for investment.”
Among the proposed requirements, future large-scale AI data centres would be required to underwrite new electricity generation, pay their share of grid connection costs and contribute at least as much energy to the grid as they consume. Albanese also said new facilities would be expected to minimise water use and support additional water infrastructure where required.
The Prime Minister announced the creation of a new Office of AI within the Department of the Prime Minister and Cabinet to coordinate AI policy across government. The office will work with the Minister for Industry and Innovation, the Assistant Minister for Science, Technology and the Digital Economy, and other portfolios covering employment, energy, copyright, education, manufacturing, defence and national security.
Albanese also said the government intends to strengthen protections for Australian artists, journalists and other creators as AI technologies become more widely used.
“Australian writers, musicians, artists and journalists must retain ownership and control of their work,” he said. “No company should use Australian books, music, art or news to build or train AI without the artist’s control.”
He added: “Anything less, is theft.”
The speech comes as governments globally continue to consider how best to regulate AI while encouraging innovation and investment. Albanese said Australia had an opportunity to establish a coordinated national approach before large-scale AI infrastructure becomes more deeply embedded.
“We can make AI work in Australia’s national interests,” he said.
The government’s focus on building domestic AI capability has been echoed by other organisations. The Australian Academy of Science has argued that Australia will need sustained investment in scientific research and local expertise to maximise AI’s economic and social benefits while maintaining sovereign capability.
Meanwhile, business groups including Commonwealth Bank have noted that the proposed AI standards aim to provide greater regulatory certainty for investment while balancing infrastructure development with community expectations.
