Experts urge action as Australia launches Office of AI

Australia's decision to establish an Office of AI has prompted industry leaders to call for practical governance that keeps pace with the rapid adoption of artificial intelligence, with experts pointing to infrastructure resilience and business accountability as immediate priorities.

The government's new Office of AI will coordinate national AI policy, governance and standards as part of a broader framework covering areas including copyright, workforce impacts, critical infrastructure and AI safety. Industry commentators say the creation of the office marks an important first step, although its long-term impact will depend on how quickly policy translates into implementation.

Infrastructure focus

One area attracting increasing attention is the physical infrastructure supporting AI deployment. The government's proposed framework includes national requirements for AI data centres covering location planning, electricity demand, renewable energy obligations and water use.

Mary-Catherine Hamill, Head of Construction, Australia, Aon, said those considerations will become increasingly important as investment in AI infrastructure expands.

"Australia's proposed standards for AI and large data centres highlight a growing tension between accelerating digital investment and managing the real-world demands these assets place on energy, water and local infrastructure. As demand for AI capacity rises, scrutiny is increasing on how these projects are powered, where they are located and how they operate at scale.

"From a risk perspective, the focus now shifts to how these expectations are delivered in practice. At the scale we are seeing today, decisions around site selection, power strategy and design increasingly determine whether projects can attract capital, remain insurable and recover from disruption as they grow. Organisations that take a more integrated approach, with resilience, energy strategy and long-term performance built in from the outset, will be better placed to navigate these competing pressures. Ultimately, the opportunity for Australia will depend on how well the industry balances speed of investment with credible, sustainable outcomes that maintain confidence from investors, communities and regulators," said Mary-Catherine Hamill, Head of Construction, Australia, Aon.

Governance challenge

Katrina Pilcher, Chief Commercial Officer, Altis Consulting, said the creation of the Office of AI marks the beginning of a longer process to establish an effective national approach to AI governance.

"The Office of AI is a good start. Now comes the hard part.

The establishment of Australia's Office of AI is a welcome step, but the real challenge starts now," said Katrina Pilcher, Chief Commercial Officer, Altis Consulting.

Pilcher said AI is evolving more quickly than previous technologies, increasing the challenge for governments seeking to balance innovation with regulation.

"AI is evolving at a pace unlike any technology before it. New models, capabilities and applications are emerging every free months, while governments are tasked with developing policy that balances innovation with issues such as privacy, copyright, workforce impacts, ethics and the infrastructure needed to support AI."

The success of the Office of AI won't be measured by its creation, but by how effectively it can coordinate a national response that keeps pace with rapid technological change," said Pilcher.

She said organisations should continue developing governance and accountability alongside AI adoption rather than waiting for policy settings to be finalised.

"In the meantime, businesses shouldn't wait for every policy question to be answered before taking action. Organisations are already embedding AI into everyday operations, and that means governance, accountability and clear guardrails need to be developed alongside adoption.

Australia has an opportunity to embrace AI while managing its risks. Achieving that will require government, industry and technology leaders to work together at a pace that matches the technology itself," said Pilcher.