Government plan raises fears AI will exacerbate national security challenges, create ‘unknown threats’

Artificial intelligence will supercharge national security challenges already facing the country and “create new and unknown threats”, a government plan warns. Labor will on Tuesday launch the National AI Plan to guide Australia’s adoption of the technology as it transforms the global economy. Backed by a $29.9m commitment to set up the AI Safety Institute in early 2026, Industry and Innovation Minister Tim Ayres said the plan “is about making sure technology serves Australians, not the other way around”. “This plan is focused on capturing the economic opportunities of AI, sharing the benefits broadly, and keeping Australians safe as technology evolves,” Senator Ayres said. He went on to say that AI would “help close gaps in essential services, improve education and employment outcomes, and create well paid jobs in future industries”. “Guided by the plan, the government will ensure that AI delivers real and tangible benefits for all Australians,” he said. “As the technology continues to evolve, we will continue to refine and strengthen this plan to seize new opportunities and act decisively to keep Australians safe.” While big tech and governments alike promise AI will unleash a new era of economic growth, national security experts are sounding the alarm on its potential weaponisation, including by state-backed actors. The plan says the Department of Home Affairs and law enforcement agencies will “proactively mitigate the most serious risks posed by AI”. Keeping Australians safe also means recognising that AI is likely to exacerbate existing national security risks and create new and unknown threats,” the plan says. “To keep Australians safe, the government is taking proactive steps to prepare for any potential AI-related incident.” Bolstering Australia’s “sovereign AI” capability is part of the answer, according to the plan. As part of guarding against malicious actors, Australia will develop GovAI as a “centralised AI hosting service, providing a secure, Australian-based platform for agencies to develop customised AI solutions at low cost.” “Locally developed models may provide benefits such as reflecting unique cultural context or language, supporting innovation and mitigating risks around data security,” the plan says. “The government is backing local capability through significant investment in sovereign AI for the public service. Another part of its “proactive” approach is leading international discussions around rules. “Shaping global governance of AI is vital for Australia’s economic prosperity and national security,” the plan says. “Australia can use its role as a responsible middle-power to embed our values of safety, transparency and inclusion in international AI norms and standards.”