Clare Armstrong Tue 14 Jul 2026 at 10:29pm
In short: #
Labor will develop a national framework to bring together its response to artificial intelligence as it seeks to address the technology's growing economic and social impacts.
The proposal comes amid debates over copyright, jobs and data centres, with states taking increasingly different approaches to approving the infrastructure needed to power AI.
What's next? #
The prime minister will outline his vision for Australia's approach to AI in a speech in Sydney today.
Australia will seek to harness the benefits of artificial intelligence without losing control of it by tackling challenges such as data centres, copyright, and jobs through a new national framework.
Prime Minister Anthony Albanese will use a speech in Sydney on Wednesday to declare the end of the federal government's "issue-by-issue" approach to AI and outline his plan to make the technology work in the nation's interest.
Amid community anxiety about data centre developments, workplace automation, copyright protections for artists and the use of AI in defence, Mr Albanese wants to reassure Australians he is focused on their concerns.
Mr Albanese will announce the establishment of an Office of AI to operate within the Department of Prime Minister and Cabinet and coordinate the design of "Australian standards" for the technology, according to a short preview of his speech.
The approach of states and territories in attracting and approving data centres needed to power AI has been particularly fragmented, with the prime minister now signalling a greater role for his government to bring that patchwork together.
Mr Albanese will say "every country on earth" is grappling with the challenges posed by AI, and claim Australia as being the "first" to bring those issues into a "single, national framework".
"Getting this right will enhance our appeal to international investors by delivering greater clarity and speed for approvals and a streamlined process for verifying compliance," he will say.
"It also imposes an important discipline on government."
Andrew Charton, Assistant Minister for Science, Technology and the Digital Economy, said the framework would deliver "national consistency".
"We want to learn the lessons from abroad where many of these data centres have been rolled out in ways that have damaged local communities," he said.
"What you will hear from the prime minister today is a strong approach to position Australia to take advantage of artificial intelligence, to be confident with the changes that are coming… but to make sure those changes are in the interests of Australians."
New AI office will 'bring together' government work #
Mr Albanese will argue AI "touches on the work of every minister and department", and it was therefore "only natural" that until now the government's response had been "issue-by-issue" and "sector by sector".
"But just as government developed coordinated approaches for other significant technologies: from civil aviation in the 1920s to genetics in the 1990s, we must do this with AI as well," he will say.
Mr Albanese wants his new AI office to "bring together" work already underway across the government.
Examples include the cooperation with states and territories on expectations around data centres, defence and national security, copyright protections, and the impact of AI in schools and on workers.
Copyright clarity unlikely for now #
The prime minister is not expected to unveil any dramatic shift in the federal government's position on copyright law, despite widespread reports that tech giant Anthropic has made its offer of using Australia as a training ground for its AI model Claude contingent on the issue.
Anthropic is reportedly seeking to make Australia its second-largest base for training behind the US, but does not want to go through existing laws to negotiate and pay for access to copyright material like music and books.
The establishment of a single creative fund to distribute compensation to rights holders in exchange for an exemption has been floated as an alternative.
But Attorney-General Michelle Rowland has consistently said Australia has no plans to provide AI companies with what is known as a text and data mining exemption for copyright.
Mr Charlton said the government was committed to making sure big tech companies could not use the work of Australian creatives without consent or compensation.
"We support the Australian creative sector," he said.
States have gone their own way on data centres so far #
States have taken different approaches in what was once a race for data centre development, with some jurisdictions launching dedicated fast-track options to attract investment.
NSW has classified large data centres as "state significant development", while Victoria commonly channels major proposals through an assessment process approved by the planning minister.
South Australia released a dedicated data centre strategy in June that linked government support to properly coordinated energy supply and sustainable water use.
Meanwhile, Western Australia does not offer a special category for data centres, but there are state-based pathways for projects deemed high-value.
Planning approvals in Queensland, the ACT, Tasmania and the Northern Territory are generally through normal local channels, with some options for larger projects to access streamlined approvals processes.
But as public backlash to data centres emerged, the competition between states started to evolve from a race to attract any investment to a focus on securing the right projects.
This includes those that have broader economic benefits, while also managing the impacts on energy, water and surrounding communities.