The Australian government is set to introduce new regulations for artificial intelligence (AI), with Industry and Science Minister Tim Ayres emphasizing the need for the country to fully embrace the technology to remain competitive. According to Ayres, Australia risks becoming “on the end of somebody else’s supply chain” if it fails to capitalize on the benefits of AI.

Acknowledging public skepticism, Ayres, a former manufacturing union official, highlighted the importance of discussions between employers and employees regarding the impact of automation in the workplace. He stated that Australia has “no alternative” but to adopt AI and strive to become a global leader in its regulation and request.

“It’s the government’s job to lean into the opportunity to outline that for businesses and for workers, but also to make sure that they are confident that we’ve got the capability to deal with the potential pitfalls,” ayres told guardian Australia.

“I think the Australian answer has got to be leaning in hard and focusing on strategy and regulation that is in the interest of Australians.”

Government’s Approach to AI Regulation

Ayres, who was recently promoted to cabinet, now leads the Labor government’s Future Made In Australia initiative, which integrates policies related to manufacturing, energy transition, research, and business. A key immediate challenge for Ayres is shaping AI policy. His predecessor, Ed Husic, initiated discussions on a new AI act and legislation to establish mandatory guidelines for AI use.

“There is no alternative to the approach of Australia leaning in,”

According to Ayres, the government is carefully considering various approaches and the rapid advancements in AI technology. The response will include legislation and regulation, with the aim of ensuring australia benefits from swift action.

“there is no alternative to the approach of Australia leaning in,” he saeid. “That’s how we’re going to shape a digital future for Australia. That’s how we get some agency and say over the way that the technology develops and our global partners develop on these questions.

“The alternative is to sit back right and just to be on the end of somebody else’s supply chain.”

Potential Benefits and Concerns

Minister Ayres emphasized the notable potential gains from embracing AI, particularly in boosting productivity and economic growth. He noted that both white-collar and blue-collar jobs could benefit from automation and new technologies. Drawing on his experience in the manufacturing union,Ayres stated that many workers understand “the cold reality that the only thing more disruptive in the labor market is standing back and allowing Australia to become a cul-de-sac in technological terms.”

“But I do want to see firms and employers being thoughtful about making sure that we’re adopting AI in a way that makes jobs better,” Ayres said.

“We’ve got an industrial relations framework that provides for proper consultation and engagement at the firm level … there’s going to be discussions workplace by workplace, around these questions.”

A recent report by the Business Council of Australia advocated for Australia to become a global AI leader, highlighting its potential to enhance productivity and living standards through economic growth. In contrast, the Australian Council of Trade Unions warned in December that one in three Australian workers are at risk of job displacement due to AI adoption.

“The BCA paper released last week pointed to a high level of scepticism amongst Australians about this new wave of technology. That’s not unusual for Australia,” Ayres said.

“every wave of technological change reshapes the labour market. That’s the truth of it. The negative consequences in jobs terms of technological change have historically been outweighed by the new investment and the new developments in jobs and technologies.”

Future Made In Australia Agenda

Ayres also affirmed that the Labor government will continue to pursue its Future Made In Australia agenda, with a strong emphasis on critical minerals, iron and steel production, and boosting manufacturing as part of the renewable energy transition.

“I want to make sure that we’re doing everything we can to be building new factories and industrial capability,” he said.

“Particularly in regions like central Queensland and the Hunter and la Trobe, where the intersection of our future energy advantage and our industrial capability really means Australia can deliver, and deliver for those communities as well.”