Australia's Federal AI Inquiry: A Step Toward Global AI Governance?

At A Glance

• Joint Committee of Public Accounts and Audit (JCPAA)
• Australia Joins Global Push For AI Governance: Balancing Ethics And Innovation

Australia's move to launch a comprehensive federal inquiry into the use of artificial intelligence (AI) in government signals a significant step in aligning itself with the global push for AI oversight. The Joint Committee of Public Accounts and Audit (JCPAA) is tasked with scrutinising the growing integration of AI within public sector agencies, highlighting concerns over governance gaps in an increasingly AI-driven world.

Chair of the committee, MP Linda Burney, said the public sector was rapidly adopting AI, but there was a lack of adequate governance frameworks to oversee the use for the technology.

"The committee has decided that oversight is needed of the current and potential future impacts of this fast-developing technology in delivering outcomes for the Australian public," Ms Burney said.

Australia’s federal inquiry into the use of AI systems by government agencies is centered on a thorough examination of key objectives that underscore the need for comprehensive oversight. The inquiry will have particular regard to how AI technologies are currently being used across public sector entities, assessing their alignment with governmental goals while identifying potential future applications. In doing so, it will also evaluate the suitability of Australia’s existing legislative, regulatory, and policy frameworks, determining whether they are equipped to manage the rapid pace of AI adoption.

This inquiry follows in the footsteps of similar regulatory moves worldwide, such as Canada’s Algorithmic Impact Assessment (AIA) tool, which mandates risk assessments of AI by government agencies. However, Australia's inquiry takes a broader approach, seeking to address whether its..

“existing legislative, regulatory, and policy frameworks that are relevant to the use of AI … are fit for purpose.” 

The JCPAA’s examination acknowledges the rapid adoption of AI, but it also exposes a critical weakness: the lack of formal governance frameworks to regulate and monitor AI usage across the public sector.

The inquiry's scope is substantial, with a focus on identifying the current, planned, and future uses of AI in public entities, while simultaneously addressing the potential risks of misuse. It also plans to review oversight mechanisms and internal capabilities within the public sector to "effectively adopt and utilise AI into the future." This shift toward proactive regulation mirrors a growing global consensus that AI, while innovative, requires strong oversight to ensure it serves public interest responsibly.

The urgency of such oversight is amplified when contextualized with global developments, including California's recent passage of SB 1047. As CNC previously covered, this legislation is poised to set a global precedent, particularly as California houses the world’s largest hyperscalers and tech leaders. The ripple effect of California’s AI regulation could reshape not only U.S. policy but also influence international AI governance. Similarly, the U.S. federal AI Act Executive Order (EO) underscores the importance of national AI oversight, recognizing the need for comprehensive governance frameworks to keep pace with AI advancements.

Australia Joins Global Push For AI Governance: Balancing Ethics And Innovation

Both Canada and the UK have also been taking steps to introduce AI governance, but as previously analysed by CNC, these countries rely heavily on voluntary ethical guidelines rather than binding legal frameworks. Canada's AIA tool, while progressive, is limited to the public sector, leaving the private sector without mandatory regulations. This highlights a key challenge for Commonwealth nations, including Australia: Can voluntary ethical guidelines keep up with the breakneck pace of AI development, or will they leave sectors vulnerable to legal risks and stunted innovation?

As Australia embarks on this inquiry, it enters the global race for AI governance, joining nations like the U.S., UK, and Canada, all of which are advancing frameworks to regulate the rapidly evolving technology. With a particular focus on the public sector’s use of AI, this inquiry could mark the first step toward broader regulatory reforms, potentially laying the groundwork for a national framework that extends into the private sector. Australia now faces the challenge of setting a standard for responsible and ethical AI deployment across both government and industry.

However, the question lingers: Will this inquiry be enough to position Australia as a leader in the global AI race, or will it lag behind other nations that are moving swiftly toward more robust, legally binding frameworks? The inquiry’s outcome could shape the country’s path forward, determining whether Australia can create a cohesive approach to AI governance that spans both public and private sectors. As the world races to establish clear standards, Australia must act decisively to avoid falling behind.

With submissions open until October 25, the inquiry provides a unique opportunity for Australia to strengthen its oversight of AI, ensuring that its future in government remains both innovative and accountable. How Australia navigates this crucial moment could influence its standing in the global AI landscape, as nations worldwide wrestle with the complexities of regulating artificial intelligence in an increasingly competitive and fast-paced environment.