# Australia sets up an Office of AI and commits to legislated national AI standards On 15 July 2026 the Australian Government said it would legislate a set of Australian Standards for AI, starting with rules for large data centers, and established an Office of AI in the Department of the Prime Minister and Cabinet. At National Cabinet on 26 August, the Commonwealth said it would work with the states and territories to develop consistent mandatory data center standards. URL: https://airiskalmanac.com/news/news-2026-07-15-australia-ai-standards-office-of-ai/ Author: AI Risk Almanac | Publisher: AI Risk Almanac Updated: 2026-11-03 --- **On 15 July 2026, Prime Minister Anthony Albanese announced that Australia will introduce and legislate a set of Australian Standards for AI, and established an Office of AI in the Department of the Prime Minister and Cabinet the same day.** The government said it expected the standards to be legislated early in 2027. The first rules it described apply to large data centers and to AI training, rather than to how AI systems are deployed or used. ## What happened The announcement said the standards would set rules for large data centers, including "a legal obligation to underwrite their own new power supply," paying their full share of connection costs, and being as water efficient as possible. It also said no company should use Australian creative works to train AI without the artist's control. The Department of the Prime Minister and Cabinet says the Office of AI will coordinate across agencies "to design and legislate the new Australia artificial intelligence (AI) standard." Ministers published the promised AI consumer safety priorities on 20 July 2026: legislating a Digital Duty of Care "that puts the onus on AI companies," consulting on a second tranche of privacy reform, AI safety in the workplace, examining options in Australian consumer law (naming retail surveillance pricing and agentic commerce), and a framework for automated decision-making in federal agencies. No dates were given. National Cabinet met on 26 August 2026. First Ministers agreed that AI "represents a generational opportunity for Australia if properly harnessed" and that large data centers bring material energy, water and land-use impacts that need to be managed. The Commonwealth will work with the states and territories on consistent mandatory standards for data center energy, water and land use, and "intends to legislate the AI standards in early 2027." The department published a consultation paper on AI infrastructure on 17 September 2026. ## Why it matters The announcement moves Australia from the approach of the December 2025 National AI Plan, which relied on existing law and voluntary guidance after the 2024 mandatory guardrails proposal was not legislated, toward AI standards set in statute (see [The Standards Landscape Explained](/learn/the-standards-landscape-explained/)). For risk and insurance readers, the content described so far for the planned standards covers infrastructure and training data. Safety duties on AI developers and deployers would come through separate measures, such as the proposed Digital Duty of Care, which remains a stated intention. For prudential entities, binding APRA standards such as CPS 230 (operational risk) already capture AI risk. ## What is not yet clear No bill has been published. Whether the standards will reach beyond large data centers and AI training, who will enforce them, and when the Digital Duty of Care will be introduced are open. The [timeline](/landscape/the-timeline/) tracks the 2027 date. ## Primary sources - AI in Australia's interests: https://www.pm.gov.au/media/ai-australias-interests - Office of AI: https://www.pmc.gov.au/node/6359 - AI consumer safety priorities: https://ministers.treasury.gov.au/ministers/andrew-leigh-2025/media-releases/ai-consumer-safety-priorities - Meeting of National Cabinet: https://www.pm.gov.au/media/meeting-national-cabinet-26-august-26