Australia Drops Mandatory AI Guardrails Plan as Tech Firms Pledge Investments
The federal government abandoned proposed mandatory AI safety rules after the May 2025 election. Two U.S. companies later signed investment agreements with Australian officials.
The federal government ended plans for a standalone AI Act that would have imposed mandatory guardrails on high-risk systems. The shift occurred after the May 2025 election. He told Four Corners the proposal was placed in a "too hard" basket.
Amodei visited Parliament House in April 2026 and signed a non-binding memorandum of understanding to work with the government on AI benefits. Three weeks later, Microsoft CEO Satya Nadella announced a $25 billion investment during a meeting with Prime Minister Anthony Albanese. He stated existing laws, when enforced, provide sufficient protection.
Santow of the Human Technology Institute said current privacy laws were drafted before widespread internet use and do not address AI-era data risks. He called updating those laws the single largest step available to protect personal information. Data centers require large amounts of electricity and water for cooling.
Sources told Four Corners that Anthropic representatives discussed plans that could consume a substantial share of national electricity output. Helen Toner, former OpenAI board member, said locating computing capacity in Australia could give the country strategic leverage in future negotiations over AI resources.
