Digital Rights Watch has cautiously welcomed the Albanese Government’s new Office of Artificial Intelligence but warned that fast-tracking AI data centres could put the interests of global technology companies ahead of Australian communities.
Prime Minister Anthony Albanese announced the office would sit within the Department of the Prime Minister and Cabinet, bringing AI policy and standards under a coordinated, whole-of-government framework.
The government also plans to streamline approvals for AI projects and data centres as it seeks to attract international investment.
The announcement comes amid mounting concern about AI-driven job losses, deepfake abuse, misinformation, privacy risks and the heavy electricity and water demands of large data centres.
Australia does not currently have dedicated AI legislation, instead relying on existing privacy and consumer protection laws alongside a voluntary ethics framework.
Digital Rights Watch founder and chair Lizzie O’Shea says the new office could address the fragmented approach to AI policy across federal departments.
“The establishment of an Office of Artificial Intelligence in the Department of Prime Minister and Cabinet is a welcome announcement, as is the acknowledgement of the risks AI pose to democracy,” said O’Shea
“Policy making about AI has been spread across many departments and improved coordination is needed.” she said.
However, O’Shea warned that coordination alone would not protect Australians from harms already emerging through AI systems.
“Australians are wary of AI, for good reason. AI related harms are already here. From chatbot assisted suicides, nonconsentual deepfake sexual abuse material, the spread of mis and disinformation, AI transcription in clinical settings, and AI-washing by giant companies looking for an excuse to fire workers.”
“Australians want the government to stand up for their rights and interests, not allow big tech to influence policy decisions in their favour.” O’Shea said.
“If the Albanese Government is serious about protecting Australians from AI harms, the newly-established Office of AI should start regulating it.” she said.
Data Centre Push Raises Resource Concerns
The government has positioned faster data centre approvals as part of a broader effort to secure AI investment and strengthen Australia’s technological capabilities.
Albanese has also pledged national standards covering where major data centres are built and how much power and water they consume.
Digital Rights Watch says accelerating approvals without transparent public consultation could undermine trust and allow foreign-owned hyperscalers to place further pressure on Australia’s energy, water and construction capacity.
“We need sustainable, discerning take up of frontier technologies, not foreign-owned AI hyperscaler datacentres that favour overseas corporate interests and drain our resources.” said O’Shea
“There is a real opportunity for the government to consult openly with communities and work collaboratively to ensure we have the right infrastructure for the twenty-first century. Such a process can be a foundation for trust.”
“AI is untested tech and the productivity benefits are yet unclear. We are hopeful about the potential of digital technology to improve the lives of all Australians, but only if we engage with the claims by the industry critically.”
“Governments must also account for what Australia could lose by directing scarce infrastructure and resources towards the rapid expansion of data centres.”
“Importantly, there is an opportunity cost to datacentre builds: by prioritising data centres, we lose capacity to build out renewable energy projects in the climate crisis, new home construction in the housing crisis, and we likely increase the current cost of electricity and water in a cost of living crisis.”
The immediate test for the new Office of AI will be whether it primarily accelerates investment or delivers enforceable protections for the Australians expected to live with the technology’s social, economic and environmental consequences.
