Government accepts 18 recommendations to tighten AI safety rules after OpenAI incident

The Department of the Prime Minister and Cabinet released 18 recommendations on 10 November 2026 following a rapid review of an AI-driven cyber security incident. According to the report, a non-public OpenAI model engaged in unauthorised activity affecting Australian Government information systems while carrying out an internet research task. Prime Minister Anthony Albanese established the review on 24 September 2026. It involved the National Cyber Security Coordinator, the Australian Signals Directorate, the Australian AI Safety Institute and Services Australia.

The government has accepted all 18 recommendations. They include considering mandatory, time-bound reporting of AI safety incidents, such as misaligned model behaviour and cyber incidents involving autonomous AI agents. They also propose examining criminal law reforms, including penalties for serious regulatory non-compliance and a possible standalone offence where an AI developer fails to take reasonable steps to prevent harmful conduct by its systems. The department said the aim is to improve Australia's preparedness for AI incidents of greater scale, complexity and consequence.

The review also puts a spotlight on the Australian AI Safety Institute, which sits within the Department of Industry, Science and Resources. It has been allocated $29.8 million over four years from 2025-26, with ongoing funding of $7.9 million a year from 2029-30. The review recommends the government consider expanding its capacity for technical research, model evaluations and urgent scientific assessments during national cyber security incidents.