The Promise of AI and the Challenge of Trust
Australia’s top business leaders and Prime Minister Anthony Albanese are pushing for widespread adoption of artificial intelligence (AI) tools, believing they can bring significant economic benefits. However, a major obstacle remains: public distrust.
Despite the potential for AI to boost the economy by up to $600 billion annually by the end of the decade, many Australians remain skeptical. This skepticism is not due to a general resistance to technology, but rather a lack of confidence in how AI is governed and implemented.
Economic Potential and Government Investment
The Australian government and corporate leaders are optimistic about AI’s ability to address long-standing issues such as stagnant productivity and rising inflation. These factors have contributed to a decline in real wages, making the promise of AI-driven growth particularly appealing.
Microsoft has committed $25 billion to developing AI in Australia by the end of the decade. This investment highlights the growing interest in AI across both the public and private sectors.
However, the challenge lies in ensuring that this technology is trusted by the people who will ultimately use it.
Governance and Job Displacement
Research from the Tech Policy Design Institute reveals that Australia’s technological stagnation is partly due to a lack of governance. While AI is often promoted as a tool to eliminate repetitive tasks, it has also led to job losses in several sectors.
Companies like Atlassian, WiseTech Global, and Afterpay owner Block have all experienced significant workforce reductions. National Australia Bank has taken steps to integrate AI into its operations, creating a dedicated AI science team. It has drawn comparisons between this shift and past changes, such as the decline of typists and administrative roles.
According to the institute’s report, only 1% of Australians fully trust AI, while 44% have no trust at all. This places Australia 42nd out of 47 countries in global trust rankings for AI systems.
The Role of Policy and Regulation
Sally-Anne Williams, a former CEO of tech incubator Cicada Innovations, emphasizes that the issue stems from poor policy. She argues that without proper governance, trust in AI cannot be established, and the potential benefits of these tools will remain unrealized.
The report, titled Earning Trust: Unlocking AI Adoption for Australians, found that 70% of Australians would feel more comfortable with AI if strong government rules were already in place. The survey involved 2,300 participants.
Williams notes that Australians are not against AI itself, but they are strongly in favor of accountability. “We need to stop seeing regulation as a handbrake,” she said. “When we get the balance right, it isn’t an enemy of innovation—it’s the infrastructure that allows it to scale and stick without impeding progress.”
Government Response and Public Preferences
Assistant Minister for Science, Technology and the Digital Economy, Andrew Charlton, acknowledged the findings. He emphasized that AI has the potential to benefit Australia, but only if safeguards and trust are in place.
The government’s National AI Plan focuses on building trust and minimizing harms. It rejects a European-style standalone AI Act, instead proposing regulation through existing frameworks guided by the new AI Safety Institute.
While Australians largely oppose a one-size-fits-all national law, the study found that 49% prefer targeted, sector-specific laws or a hybrid model. The institute recommends a Coordinated AI Regulation Act to establish a baseline while allowing sector-specific regulators to tailor rules.
Public Concerns and Priorities
The report uncovered a “knowledge paradox” where individuals with a functional understanding of AI risks are 39% more likely to support regulatory intervention than those with low knowledge. This suggests that transparent public debate could increase support for regulation.
When asked about specific issues that new laws should address, respondents ranked privacy and control over personal information as their top concern (75 out of 100). Protecting jobs and workers’ rights followed (64), and preventing the spread of AI-generated misinformation came third (59).
Charlton noted that safety is a key priority for the Albanese government as it prepares to launch the AI Safety Institute. “Progressing outcomes on safety is a key priority,” he said.
