The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on the country’s new artificial intelligence (AI) guardrails.

Context

  • The Labor government of Australian Prime Minister Anthony Albanese has released a new voluntary AI safety standard with immediate effect and a proposals paper on Introducing Mandatory Guardrails for AI in High-Risk Settings. The government seeks to balance industry’s need for clarity with public desire from stronger regulation. The voluntary standard seeks to give businesses certainty ahead of implementing mandatory guardrails and is similar to approaches in other countries.
  • The voluntary standard consists of 10 voluntary guardrails that apply to all organizations throughout the AI supply chain. Aligned with the proposed mandatory guardrails, the voluntary standard includes transparency and accountability requirements and explains what developers and deployers of AI systems must do. An authoritative report was also released, which shows that Australian businesses consistently overestimate their capability to employ responsible AI practices.

Significance

  • The consultation on Introducing Mandatory Guardrails for AI In High-Risk Settings closes October 4. It is seeking feedback on the proposed guardrails, how the government proposes to define high-risk AI and regulatory options to mandate the guardrails. The proposed guardrails aim to address risks and harms from AI, build public trust and provide businesses with greater regulatory certainty.
  • The Responsible AI Index 2024, commissioned by the National AI Center, was also released. The report showed Australian businesses consistently overestimated their capability to employ responsible AI practices. It found 78 percent of Australian businesses believe they were implementing AI safely and responsibly, but this was correct in only 29 percent of cases. The index surveyed 413 executive decision-makers who are responsible for AI development in their across financial services, government, health, education, telecommunications, retail, hospitality, utilities and transport.

Implications

  • The government acknowledges interoperability with other countries’ approaches to AI regulation will help minimize regulatory burdens on Australian exporters and encourage more foreign investment in Australia. In addition to AI-specific regulations, companies should prepare for developments in economy-wide laws affecting AI, such as privacy, administrative law, online safety, corporations, intellectual property, competition and consumer protection, anti-discrimination and cybersecurity.

We will continue to keep you updated on developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team

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Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More