Industry welcomes Australia's new National Office of AI

The Australian Government has announced the creation of a National Office of AI, following the Prime Minister's pledge to place "AI in Australia's interests" at the centre of technology policy.

The office will sit at the heart of a national artificial intelligence framework, coordinating standards, governance and industry engagement across portfolios and signalling a more assertive approach to digital oversight.

Industry, security and research figures broadly welcomed the decision, while warning that structure and legislation alone will not be enough without sustained investment, skills and practical guidance.

Ian Dempsey, Regional Director, Public Sector, UiPath Australia, said the focus must now extend beyond standards-setting to the real-world control of AI agents as they become embedded in business processes.

"A National Office of AI is a good move, but coordination on standards is only half the story. The harder question is how you govern AI agents once they're actually embedded in day-to-day workflows, not just how you regulate the technology in the abstract. We see this with every enterprise rolling out AI agents: it only scales when there's real oversight built in; clear guardrails, human sign-off on the decisions that matter, and visibility into what agents are doing and why. Governed properly, that oversight is what unlocks the productivity gains everyone's chasing, not what slows them down. Reliability, not just capability, is what turns AI from a pilot into something a business can actually run on - and that's where government and industry now need to focus together."

Business leaders also tied the office to broader economic goals, arguing that clear signals from Canberra on rules and responsibilities will shape investment decisions and the pace of adoption.

"The establishment of Australia's Office of AI is a welcome step towards creating the national leadership and policy framework needed to support responsible AI adoption. Clear policy, governance and standards will be critical in giving organisations the confidence to invest, innovate and protect sensitive data. However, policy alone won't improve Australia's productivity or global competitiveness. Success will ultimately be measured by how effectively government, industry and technology partners work together to accelerate AI adoption across the economy.

"At Logicalis, we believe data sovereignty, security and responsible AI must underpin every deployment, while continued investment in today's workforce and the next generation of technology talent will ensure Australia is well positioned to realise the full potential of AI," said Lisa Fortey, General Manager, Logicalis ANZ.

Alex Coates, Chief Executive Officer of managed service provider Interactive, said the Government's consultation plans and unified framework would help shape how organisations respond.

"The Office of AI promises a national AI framework to bring together work already underway across government, and this is a positive start. The Prime Minister has promised to consult closely with industry and trading partners to design the framework for fast decision-making, infrastructure and community engagement. This will be key to success. We know we have a digital duty of care, from keeping our data centres sustainable to setting guardrails for AI development and maintaining sovereign security. The Government cannot do everything on its own, and we have seen this first-hand in how the social media ban has landed. Community confidence is built through consultation, transparency and practical outcomes, and there are important challenges and eventualities we must prepare for. The real test will be turning the framework into practical guidance organisations can implement, while ensuring Australia remains competitive as global investment in AI capability continues to accelerate. We look forward to working collaboratively with government, partners and customers to strengthen our national posture now," said Coates.

Security specialists pointed to the challenge of building consistent rules that can keep pace with AI's spread into daily life. They said the framework will need long-term backing and clear incentives if it is to change behaviour.

"In one way or another, your life has been affected by AI. As a nation, we are still developing a consistent approach to how AI is governed, adopted and applied. We have always believed that AI development needs to be deliberate, dynamic and strategic. The Office of AI, and a national framework, has the potential to create greater consistency across government and industry, supporting a unified and effective approach to AI, but to set ourselves up for success and safety, it must be clear. There appears to be a focus on defence and strong copyright protections. Building the cyber resilience and governance needed to support such diverse priorities is complex and will require a long-term commitment. It will also be interesting to see how the framework is implemented in practice, including the role of incentives, standards or future compliance requirements. Ultimately, success will depend on striking the right balance between clear government direction and industry-led innovation. The opportunity is significant, but so is the responsibility to ensure AI is adopted in a way that is secure, transparent and trusted. Industry, including our own team, can play an important role in bringing that shared vision to life, provided we shape it together," said Fred Thiele, Chief Information Security Officer, Interactive.

The Australian Academy of Technological Sciences and Engineering (ATSE) framed the announcement against what it described as an investment gap with peer economies. Its AI Investment Blueprint found global spending on AI is expected to approach AUD $3 trillion this year, while Australia has committed just over AUD $300 million in the past five years.

The academy said legislated national AI standards align with its earlier recommendations, but argued that funding for skills and infrastructure will determine whether Australia remains competitive.

"ATSE welcomes the Government's intention to establish nationally consistent requirements for data centres, including energy and water obligations. As demand for data centres grows, investment must also support renewable energy, water-efficient technologies and technologies that can make this digital infrastructure more sustainable and deliver long-term benefits for local communities.

"ATSE looks forward to working with the Australian Government to strengthen national coordination of AI policy and ensure Australia captures the economic opportunities presented by AI while maintaining public trust," said Peter Derbyshire, Acting Chief Executive Officer, ATSE.

"Once the regulatory framework is developed, the next challenge is ensuring we have the engineers, researchers and skilled workforce to turn AI opportunities into Australian capability, Australian jobs and Australian exports," said Derbyshire.