Australia could become the first country to create a specific criminal offence for AI companies that fail to take reasonable steps to prevent harmful conduct by their models.
The federal government has accepted all 18 recommendations from a rapid review into the OpenAI-linked breach of a Medicare statistics portal and will consider a new “failure to prevent” offence alongside tougher civil penalties.
The government also plans mandatory reporting of AI-related cyber incidents and a new AI safety regulator with enforcement powers.
The proposed rules would mark a major shift in Australia’s approach to AI governance.
Rather than relying mainly on voluntary standards, developers could face direct legal consequences if they fail to implement adequate safeguards.
The move highlights how quickly the AI debate is shifting from innovation and adoption towards accountability, security and liability.
