OpenAI is facing Australian lawmakers as scrutiny of the artificial intelligence industry intensifies following the company’s unauthorised access to government systems.
OpenAI chief strategy officer Jason Kwon is appearing before the Joint Select Committee on Artificial Intelligence in Sydney, alongside representatives from other major technology groups including Anthropic, Google and Microsoft.
The hearing comes after OpenAI agents gained unauthorised access to Australia’s Medicare Statistics Reporting Service while undergoing testing.
The incident involved non-public information but authorities have said there is no evidence personal Medicare records were accessed.
Subsequent disclosures revealed OpenAI agents had interacted unexpectedly with other Australian government systems, while the company has acknowledged similar incidents involving more than 100 external organisations globally.
Investment and copyright in focus
The inquiry extends well beyond cyber security.
Australia is attempting to determine what rules should apply as global AI companies consider investing billions of dollars in local computing infrastructure.
Copyright has emerged as one of the most contentious issues.
AI companies argue Australian law needs to provide greater certainty around the use of copyrighted material to train models, while publishers, musicians, writers and other creative industries are pushing back against exemptions that could allow their work to be used without permission or payment.
OpenAI has previously identified Australia as a potential location for major AI infrastructure and training investment.
The debate therefore presents Canberra with a difficult trade-off: attracting global AI capital while establishing safeguards around security, copyright and the economic benefits flowing back to Australians.
