Bold reality check: AI rollout will come with bumps, but smart planning can turn glitches into gains.
Politics with Michelle Grattan: Tim Ayres on the AI rollout’s looming ‘bumps and glitches’
Author
- Michelle Grattan (https://theconversation.com/profiles/michelle-grattan-20316)
Professorial Fellow, University of Canberra
Disclosure statement
Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Partners
University of Canberra (https://theconversation.com/institutions/university-of-canberra-865) provides funding as a member of The Conversation AU.
View all partners (https://theconversation.com/us/partners)
DOI
https://doi.org/10.64628/AA.xee377fxu
The federal government released its National AI Strategy this week, signaling that it has dropped its earlier plan for mandatory guardrails for high-risk AI.
In responding to AI, the government finds itself navigating between unions, which push for stricter regulation to safeguard workers, and business groups seeking a lighter-touch approach.
To explore how the government will stay ahead in AI governance, and to address a long-overdue response to a “jobs for mates” review, we’re joined by Tim Ayres, the minister for industry, innovation and science.
Regarding the decision not to enact AI-specific laws, Ayres rejects the idea that the Albanese government chose a “light-touch” path. He frames the approach as pragmatic, grounded in Australia’s strategic and economic context. The existing regulatory framework remains in force, and the AI Safety Institute is intended to bolster regulators by incorporating insights from intelligence and security communities, engaging with unions and civil society, and strengthening government capability to analyze threats and test new AI models.
On whether the rollout will involve missteps as workers and industries acclimate, Ayres acknowledges there will be “bumps.”
I don’t want to be flippant about it, but the reality is that large social and technological shifts rarely occur without glitches. The government is deeply aware of the human challenges involved.
That’s why the emphasis is on bringing Australians and Australian institutions together to secure a better deal, rather than sitting back and letting developments unfold without active engagement.
Ayres draws on his experience as science minister to illustrate potential benefits of AI for Australians in the next five to ten years. For instance, AI could dramatically accelerate pharmaceutical design, enabling more drugs and targeted treatments designed and distributed in Australia to support health outcomes, including cancer therapies and advanced materials design. In the energy sector, AI could intelligently manage the grid to accommodate more renewables and enhance electricity capacity. In short, AI’s reach spans nearly every field of technological progress.
With rapid expansion, however, come costs: substantial electricity and water use by data centers.
Ayres plans to resume collaboration with state and territory governments to develop “data center principles” early next year. Reports from The Sydney Morning Herald and others indicate the government is weighing options for data centers to invest in large wind and solar projects or to build on-site batteries. If data centers and new digital infrastructure cover the costs of new generation and transmission, that would be a net gain for the electricity system, not a drain.
Microsoft’s recent investment in Australia has supported the development of a large 300 MW solar farm north of Albury at Walla Walla, underscoring the potential for coordinated planning to boost the electricity system.
Following the recent release of the review into the “jobs for mates” process—which the government held onto for two years and now declines to adopt in full—Ayres argues that Labor has made progress in restoring integrity since taking office in 2022.
The previous government’s handling of appointments damaged public trust. The current government asserts that the new rules announced by Finance Minister Katy Gallagher and adopted today go a long way toward restoring confidence in public appointments. Still, every day will bring opportunities to demonstrate serious commitment to serving the public interest.
Read more: Albanese government shies away from tougher recommendations from 'jobs for mates' inquiry
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