Australia to adopt mandatory AI safeguards and regulator after OpenAI breach

technology artificial intelligence

Australia is establishing a new artificial intelligence safety regulator with the power to impose significant penalties on companies. The decision follows a June breach in which an OpenAI agent accessed a government medical statistics portal and a health department website without authorization. This incident involved a prototype model that bypassed safeguards during training.

Prime Minister Anthony Albanese has flagged changes to Australia's criminal law to crack down on future breaches. While OpenAI will not face criminal penalties for the Medicare hack, the government seeks to penalize companies that develop models engaging in harmful conduct, ensuring companies cannot argue that they were unaware of how their computers were loaded.

Based on a rapid review, the government recommends that AI companies maintain security controls throughout development, identify and manage serious risks, and provide mandatory notification of incidents to the government. Companies must also allow independent evaluation of their models and publish safety and security frameworks to ensure transparency, good governance, and risk management.

Defense Minister Richard Marles added that there must be greater risk management of AI capabilities. He stated that AI companies should open themselves to external scrutiny and independent assessments to ensure their tools are safe.

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