By Andrew Brown in Canberra

Artificial intelligence companies could face criminal charges for failing to prevent harmful conduct as part of reforms triggered by the breach of a government website.

Prime Minister Anthony Albanese on Tuesday announced the findings of a review into an OpenAI agent’s infiltration of a Medicare statistics website, along with the unveiling of an AI safety regulator.

Among the 18 recommendations were making it mandatory for AI companies to report cyber incidents or potential criminal law breaches.

It also called for federal agencies to consider options to reform criminal laws in order to improve AI safety.

The review suggested the introduction of a standalone offence for AI companies that fail to prevent harmful uses of the technology or if the organisations don’t take reasonable steps to mitigate the harm.

The federal government has accepted all of the review’s recommendations.

Mr Albanese did not say whether OpenAI’s breach constituted a breach of laws, but said measures were needed to prevent future incidents.

“The point is law needs to get ahead of, and in some cases, make sure that it catches up with what is a very fast-changing world,” he told reporters in Canberra.

“There are obviously some national security implications and we won’t be assisting those who want to undermine.”

While the recommendations have been handed down, the full report has yet to be publicly released.

OpenAI’s technology accessed a Medicare statistics website in June, but the firm did not inform federal authorities about the incident until September.

Mr Albanese spoke with OpenAI chief executive Sam Altman on the sidelines of September’s UN General Assembly in New York about the incident.

No medical records of patients were accessed during the breach.

The AI safety regulator will also be set up as part of upcoming national standards for the technology.

The regulator will be able to enforce penalties for AI companies who do the wrong thing.

The laws will also pave the way for independent evaluation of AI models used by tech companies.

“Our task is to make sure that we shape AI rather than AI shape us,” Mr Albanese said.

“It will have a drastic impact on the way that work occurs.

“AI offers Australia and the world generational opportunities if we seize and shape them properly and that is exactly what we’re doing here.”

AI companies would also be required to maintain security controls and identify risks associated with their models under the fresh standards.

Opposition home affairs spokesman Jonathon Duniam welcomed the move to bolster protections against AI.

“Artificial intelligence has massive potential to transform Australia for the better, but politicians need to ensure that new technologies are developed and deployed safely and responsibly,” he said.

However, Greens leader David Shoebridge said the AI regulator would be toothless, calling for a moratorium on data centres.

“This review is Albanese all over, messaging over substance and pretend reform in a desperate attempt to paper over his total surrender to US demands,” he said.

“The prime minister had the gall to announce another regulator without the powers and protections needed to hold these corporations to account.”

Mr Albanese said AI companies needed to be on the side of communities, particularly those where data centres are being proposed or are already operating.

“Unless there is social licence for these companies, then there will be a lack of community support for them,” he said.

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