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Tech behemoths driving the data centre boom will be forced to create their own energy sources and conserve water under artificial intelligence regulations outlined by Prime Minister Anthony Albanese, who signalled to big corporates that Labor would view dimly any job cuts from the technology.
In a keynote speech at Sydney University, Albanese also insisted he would not give up the rights to Australian music and publishing content to US firms wanting to train their models, arguing such a move would amount to theft and flagging a novel solution to allow firms to pay for material.
The prime minister’s speech argued that AI was a more profound development than social media. Australia had to act quickly to maintain community support for data centres and to make sure workers were assisted rather than replaced, he said.
“We want AI to support and create good jobs, not replace them,” Albanese declared, a week out from a Labor Party conference at which unions will pressure him to shield workers.
“Our great country can be much more than a data warehouse for AI products made overseas. We cannot settle for a short-term boom in capital expenditure”.
“We can lead in everything from cybersecurity and biotechnology to advanced manufacturing. We must create a new generation of good, secure jobs”.
His rhetoric in a highly anticipated speech is a sign Labor is prepared to use industrial laws to help augment the workforce with AI rather than upend it. He delivered the speech a day after 200 leading US economists warned that the AI transformation could be as severe as the Industrial Revolution unfolding over a much shorter timeframe.
The standoff between Anthropic and the Albanese government over access to copyrighted content has not been settled, but the prime minister used his firmest language to date on Australia’s intent to protect artists. There have been mixed views inside the government on the potential for a copyright exemption for tech firms, but Labor’s position had hardened after an energetic lobbying campaign from artists.
Tech giants willing to play by new rules
Two of the biggest tech companies, Anthropic and OpenAI, welcomed Albanese’s speech and pledged to work with the government on its commitment to strict rules on AI development.
“Anthropic has been clear for some time that societal-level solutions are needed for AI,” said Anthropic general counsel Jeff Bleich.
An OpenAI spokesperson said the company would engage constructively “on an approach that is practical, sustainable and right for Australia”.
The government hopes to next year introduce legislation that would mandate requirements for firms building data centres, which have propped up business investment and growth over the past year in an otherwise flat economy.
Albanese said the computing factories used to power AI models should not compete with housing developers for land. Firms must pay for energy to offset their own electricity usage and build water facilities, he added.
These requirements had previously been put forward as non-legislated requests rather than codified obligations. The government has become more attuned to local blowback and Labor MPs’ concerns about huge data centres competing for resources.
As One Nation starts to campaign against data centres, Albanese pledged to “ensure data centres do not increase power prices for Australians”.
The states need to buy in
NSW Premier Chris Minns welcomed the proposed AI framework but stressed communities’ rights must be ensured.
“NSW wants to lead the way on jobs, investment and innovation – but we need to get the settings right,” he said.
The rules for data centres would need to be ratified by premiers and chief ministers, who oversee planning approvals, at a meeting of the national cabinet next month. The conservative governments of Queensland and Tasmania may baulk at any requirements to pressure data centre firms to build renewables ahead of other forms of energy.
Queensland Premier David Crisafulli said earlier this month that he would not commit the state to mandate renewable energy generation for data centres.
“Only one state believes that the energy source for [data centres] should come from wherever it is best placed, not exclusively from one source of energy,” he said.
Australian Council of Trade Unions secretary Sally McManus welcomed Albanese’s crackdown and said AI had stolen creative works, been used by employers to sack employees and the industry had made no guarantees it would benefit working Australians.
Business Council of Australia chief executive Bran Black warned against over-regulation but said he would wait to see what was contained in Labor’s regulation.
Commonwealth Bank chief executive Matt Comyn said Australia should impose clear standards “on Australian terms”, which would secure social license for industry development and create consistent rules to build investor confidence.
Seeking a copyright solution
Albanese’s cabinet is debating options on how the US firms could pay for things like songs and books. Anthropic wants access to Australian material in exchange for ploughing billions into Australia as its second home for training its models.
The prime minister signalled Labor wanted a novel, world-leading model that would allow creatives to choose whether their works would be used to train AI and how they are paid.
“No company should use Australian books, music, art or news to build or train AI without the artist’s control. That includes the artist’s control of the price and value of their work,” he said.
“Anything less, is theft.”
“No country has got this right yet. Let me make this crystal clear: not everything produced in Australia is up for grabs. Not at all … Our laws will spell that out, plain as day,” he said.
Opposition Leader Angus Taylor said Labor’s new Office of AI was the wrong priority and Australia should be hyperfocused on growing the economy through AI and making sure it had access to the best US models.
“Not more bureaucracy; it’s always more bureaucracy with this government,” he said.
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