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Australian Prime Minister Anthony Albanese has announced plans to introduce legislation regulating artificial intelligence, including rules governing the use of power by AI data centres and stronger protections for creative copyright.
Speaking at the University of Sydney on Wednesday, Albanese said the proposed laws, expected to be introduced next year, are aimed at ensuring AI development serves Australia‘s national interest while strengthening public trust and protecting national security.
He said he would meet with Australia’s state and territory leaders next month to discuss the proposed framework, describing the regulation of AI as a critical priority.
Albanese warned that allowing other countries or foreign technology companies to dictate AI standards would undermine Australia’s sovereignty and security, arguing that the country should play a leading role in shaping its own AI future rather than becoming merely a host for foreign-built technologies.
The announcement follows reports that US artificial intelligence startup Anthropic had lobbied Australian officials to amend copyright laws to support AI model training as it considered investing in data centres in the country. The move prompted calls from musicians, writers and publishers for stronger protection of creative works.
Addressing those concerns, Albanese said Australian books, music, art and news content should not be used to develop AI systems without the permission of their creators. He argued that artists must retain control over how their work is used and compensated, adding that any unauthorised use would amount to theft.
“No company should use Australian books, music, art or news to build or train AI without the artist’s control. That includes the artist’s control of the price and value of their work. Anything less is theft,” he said.
Under the proposed framework, large AI data centres will be subject to legal obligations requiring them to contribute more electricity to the national grid than they consume, in a bid to prevent AI operations from driving up power prices. They will also be required to minimise water use and avoid competing with housing developments for land.
Government figures show investment in data centres was the largest contributor to Australia’s economic growth in the three months to March, although most of the equipment used was imported.
Albanese said the country should pursue long-term economic benefits from AI rather than relying solely on short-term construction and capital investment.
He also noted that government data had yet to show any significant impact of AI on employment, arguing that the technology should be used to create jobs rather than threaten them.
“We should not treat AI as a threat to good jobs. We should use it as an instrument to create them,” he said.
As part of the initiative, the government will establish a dedicated AI office within the Prime Minister’s department to oversee policy development and implementation, with Albanese saying the move would provide greater certainty for investors and streamline regulatory approvals.
