National AI Plan: Australia's roadmap to building an AI enabled economy

On 2 December 2025 the Australian Government released its National AI Plan (Plan). The Plan sets out the Australian Government's commitment and approach to fostering AI innovation, adoption and investment in Australia.

This update provides a snapshot of the National AI Plan, its implications for AI regulation in Australia and the AI regulatory road ahead.

The Plan sets out a comprehensive roadmap for the Australian Government to build an AI-enabled economy that is more competitive, productive and resilient. The Plan seeks to strike a delicate balance between:

• driving investment in AI research, technology and infrastructure;
• supporting businesses to scale AI adoption; and
• mitigating the potential harms that can arise from the adoption and use of AI.

Three Goals

The Plan is anchored by 3 goals:

• Capturing the opportunity: fostering investment in world-class digital and physical infrastructure, supporting local capability and attracting global partnerships.
• Spreading the benefits: ensuring that all Australians, regardless of background or location, shares the advantages of AI.
• Keeping Australians safe: protecting individuals' rights and building trust through robust legal, regulatory and ethical frameworks.

Regulatory approach

The Plan also signals the Australian Government's approach to AI regulation. For now, the Australian Government is adopting a "regulation where necessary approach". The Government proposes to rely on existing, technology-neutral laws to address and mitigate AI-related harms. Existing regulators and agencies will continue to be responsible for addressing AI-related harms.

This regulatory approach is a departure from the Government's previous proposal to introduce mandatory guardrails for AI adoption in high-risk settings and consider introduction of further AI-specific laws. These previous proposals were broadly aligned with the approach taken in the EU, which implemented the risk-based EU AI Act in August 2024.

The Government's new approach will lead to an AI regulatory framework encompassing existing laws, regulatory guidance, government policy, voluntary AI governance and targeted AI specific laws where needed. It remains to be seen whether this approach will be sufficient to guard against AI-related harms.

The Government will also establish an AI Safety Institute to monitor, test and share information on emerging AI capabilities, risks and harms.

The regulatory road ahead

Striking the right balance between fostering innovation, investment, AI enabled digital transformation and regulation is a delicate matter. It is evident we are at the beginning of the AI policy road, with many twists and turns likely on the horizon. The Government notes the Plan will be adapted as needed in response emerging opportunities and risks.

Further, the Government continues to identify and understand AI risks and harms in many areas including:

• Consumer protection: the Department of Treasury considered AI in its Review of AI and the Australian Consumer Law.
• Copyright law: the Attorney-General's Department, through the Copyright and Artificial Intelligence Reference Group is consulting on possible updates to Australia's copyright laws as they relate to AI.
• Healthcare: the Department of Health assessed the impact of AI on healthcare regulation in the Safe and Responsible Artificial Intelligence (AI) in Healthcare Legislation and Regulation Review.
• Medical device software: the Therapeutic Goods Administration considered AI use in medical device software in its review Clarifying and Strengthening the Regulation of Medical Device Software including Artificial Intelligence.
• Privacy: the Attorney-General continues to lead work on modernising the Privacy Act 1988 (Cth) to be fit for purpose in today's digitally based economy.
• Productivity: the Productivity Commission considered AI regulation as part of its inquiry into Harnessing data and digital technology.

Takeaways

Given the various completed and ongoing Government reviews of AI and Australia's existing complex regulatory environment, it is understandable the Government is taking a considered and cautious approach to AI regulation. It remains to be seen whether this approach will be sufficient to keep pace with, and guard against, AI-related risks and harms or whether a heavier handed approach will eventually be needed.

The Government moving away from implementing AI-specific laws means that organisations cannot wait for the introduction of AI laws before taking comprehensive steps to address AI governance and compliance. While the Government and regulators will continue to provide guidance, the Plan makes clear that every organisation developing and using AI is responsible for identifying and responding to AI harms.

Organisations should:

• be aware that existing laws such as privacy laws, competition and consumer laws, directors duties and workplace laws, apply to the development and use of AI;
• consider the application of existing laws, including guidance issued by relevant regulatory authorities, when developing and implementing AI solutions; and
• adopt an AI governance framework.

Taking these steps is vital to developing and implementing AI solutions in a responsible and trustworthy manner.

Lander & Rogers will be releasing a series of content on a range of emerging AI-related topics, including the impact of evolving AI governance best practice, workers' rights in deployment of AI, emerging cybersecurity risks, and risks in litigation and investigations.

We are actively helping clients across all sectors, both public and private, on their AI adoption journey. For more information about the current AI regulatory environment and how we can support your organisation to realise the full potential of AI technologies, please contact our team of AI law experts.