Australia creates Office of AI under Prime Minister

The Australian Government has created a new Office of AI within the Prime Minister's portfolio, placing it at the centre of a broader national framework for artificial intelligence that will also include technical standards and governance settings.

The move signals that Canberra now sees AI as a whole-of-economy issue. Policy work will cover safety, security, productivity and workforce impacts as the Government responds to the rapid adoption of generative and predictive systems across business and the public sector.

Enterprise software providers, cybersecurity firms and policy specialists describe the shift as part of a transition from AI experimentation to large-scale deployment. They identify governance, data quality and security controls as the main pressure points for organisations already using AI tools in day-to-day operations.

Workday Executive Jo-Anne Ruhl said the framework reflects a sharp change in how organisations approach AI in their planning and investment cycles.

"The establishment of the Office of AI under the Prime Minister's Office and the forthcoming AI Standards reflect how quickly AI has moved from experimentation to becoming a strategic capability for organisations across Australia. As AI becomes more embedded in everyday work, the focus is shifting from simply adopting the technology to ensuring it is implemented in ways that are trusted, governed and deliver meaningful business outcomes. For many organisations, the challenge is no longer access to AI. It is creating the operational foundations and setting the right guardrails that allow AI to be used confidently and responsibly at scale. That means connecting trusted data, business processes and governance, while ensuring people remain central to decision-making where judgement and accountability matter most. A coordinated national approach can help build confidence in AI adoption while reinforcing that productivity gains come not from technology alone, but from rethinking how people, processes and technology work together," said Jo-Anne Ruhl, Vice President and Managing Director, Workday Australia and New Zealand.

Security specialists have focused on whether the new arrangements can keep pace with threats already exploiting AI systems and models. They argue that standards and governance structures must translate into controls organisations can apply today.

Tenable Field Chief Technology Officer for Asia Pacific and Japan Ben Mudie said many boards and executives had prioritised adoption ahead of security.

"Australian organisations have been racing to adopt AI for years while security has been an afterthought, and attackers haven't been waiting for policy to catch up. Standards and coordination are welcome, but they only matter if they translate into real visibility and control over how AI is deployed inside businesses today, not just guardrails for tomorrow. Government leadership on AI governance is good; now it needs to move at the speed of the threat, not the speed of policy," said Ben Mudie, Field Chief Technology Officer for Asia Pacific and Japan, Tenable.

Security vendors also link the AI framework to broader cyber resilience efforts already shaping investment in critical infrastructure and cloud services. They emphasise AI's role in defence as well as its use in offensive activity by criminal and state-backed actors.

Palo Alto Networks Executive Nicole Quinn described the policy shift as both an economic and national security issue.

"The Prime Minister is right to position AI as Australia's next productivity frontier. But for Australia to capture this economic opportunity, security must be built in from day one, not bolted on after an incident. As threat actors harness AI to attack at machine speed, our national resilience depends on deploying AI-driven defences and Zero Trust architectures across every layer of our digital footprint. Guardrails are vital, but policy must remain pragmatic and risk-based so that protecting our sovereign infrastructure enables innovation rather than slowing it down," said Nicole Quinn, Vice President of Policy and Government Affairs (Asia Pacific & Japan), Palo Alto Networks.