How Labor’s new AI regulations will impact firms like OpenAI and Anthropic
In its latest move to create a sense of control over the AI revolution, the government has pledged that major AI firms will be caught up in Labour’s tough Digital Duty of Care proposal.
After Prime Minister Anthony Albanese announced rules on data center construction last week, his government turned to talk of new consumer protection measures.
Also on Sunday, Victorian Premier Jacinta Allan announced separate legislation that would make it easier for parents to sue AI or social media companies for mental harm.
Without giving full details, the Albanian government is promising stronger privacy laws for personal data, rules to stop firms using artificial intelligence to adjust prices based on buyers’ wealth, and a framework to regulate the use of automated decision-making by federal agencies such as Centrelink.
Online duty of care, which has sparked concerns from critics who support the open internet, will grip artificial intelligence firms. This means private players such as OpenAI and Anthropic may need to carry out risk assessments and publicly report the results of their systems to comply with Australian law.
Proposing security obligations on AI companies is another sign that Labor wants to get ahead of the curve ahead of the party’s national conference this week, where unions and other activists will demand more interventionist approaches. Albanese is trying to balance these instincts against Labor’s desire for more AI investment in Australia.
Deputy Minister for Science, Technology and Digital Economy Andrew Charlton said that artificial intelligence is critical for both national security and a more dynamic economy, as China aims to surpass the United States in technology that is expected to shape geopolitical competition in the coming years.
“This is the most important technology of our lifetime and we are faced with the question as a nation of whether we want to have this in Australia,” Charlton told Sky. Sunday Agenda. “If we rent from abroad, it means we always pay foreigners for this technology.
“It is also important from a security perspective. These data centers contain your photographs and medical records. It is valuable for us to have this data in Australia.”
The Digital Care Duty proposal was announced alongside Labour’s social media ban on under-16s. This would shift responsibility to the platforms from responding to individual complaints to preventing harms before they occur.
Labor has said it wants to regulate AI more quickly than restricting social media, but the extent to which a smaller country can shape the future of AI uptake is unclear as larger countries and tech giants set the rules of engagement.
Tech companies, privacy advocates and free speech groups have warned that maintenance reform could make it impossible to keep an anonymous online account and revive elements of misinformation laws that Labor has abandoned.
In his opening speech last week, Albanese signaled new laws that would ensure the data center gold rush that supports Australia’s stagnant economy does not put pressure on the country’s energy or water resources.
Deputy Liberal leader Jane Hume said Albanese’s speech was “much over-hyped but actually contained very little”.
“This was a process conversation. It was more about bureaucracy than opportunity and innovation,” he said. “Where was the conversation about lowering barriers to entry or innovation, lowering energy prices or upskilling workers?”
The Victorian government said on Sunday it would introduce legislation to unmask online trolls and make it easier for people to sue digital giants.
“They feel powerless on a number of fronts,” Prime Minister Jacinta Allan said. “How quickly kids become obsessed with these online platforms… I see this in my own home, too.”
Under the proposal, Victoria’s Civil and Administrative Tribunal would be given so-called masking powers to force social giants to reveal users’ identities in detail.
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Paul Sakkal is the Chief Political Correspondent. He has previously covered Victorian politics and won the Walkley award as well as the 2025 Press Gallery Journalist of the Year award. Contact him securely on Signal @paulsakkal.14.Connect with: X or email.
