Australian Bipartisan Panel Urges ‘High-Risk’ Label for AI Chatbots Like ChatGPT

In a bold move, an Australian parliamentary inquiry has recommended that AI chatbots, including OpenAI’s popular ChatGPT, be classified as “high-risk” under proposed artificial intelligence laws. The bipartisan panel emphasized the need for stringent regulation to mitigate the AI risk associated with technologies that could harm democracy, workplace rights, and creative industries.

Labor Senator Tony Sheldon, chair of the inquiry, stressed that AI holds immense potential to drive productivity and economic growth but also presents unprecedented challenges.

“General-purpose AI models must be treated as high-risk by default,” Sheldon said, “with mandated transparency, testing, and accountability requirements.”

AI and Democracy: A Risk to Rights, Freedoms, and Creativity

The panel highlighted the risk of AI undermining democratic processes, citing evidence of AI-generated content being used to disrupt elections, such as the recent U.S. presidential race. Additionally, workplace surveillance tools powered by AI were flagged for threatening worker rights, with developers urged to meet higher accountability standards.

The inquiry criticized Amazon, Meta, and Google for a lack of transparency during the investigation, deepening concerns about AI governance. It recommended a risk-based AI policy similar to Europe’s approach, banning high-risk tools like social scoring and real-time facial recognition while ensuring minimal interference in low-risk applications.

The committee accused AI developers of “unprecedented theft” from Australian creatives, alleging unauthorized use of copyrighted material to train models. It proposed immediate action to enforce fair compensation for creators whose works are exploited. With over one million Australians employed in creative industries, the panel argued that robust AI governance is vital to protect jobs and maintain the quality of artistic output.

Moving Toward Comprehensive AI Regulation

The findings advocate for standalone AI laws that identify and regulate high-risk technologies. These include tools like ChatGPT and AI products used in sensitive domains such as healthcare and workplace monitoring. The panel’s call for urgent reforms reflects growing global concerns over the unchecked growth of AI technologies.

Australia’s strong stance on AI regulation underscores a critical global dialogue about balancing innovation with safety. By implementing rigorous AI policies, the nation aims to foster trust, safeguard rights, and ensure the ethical growth of a multi-billion-dollar industry.
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