ACS urges prompt, risk-based AI rules to boost skills & trust

ACS has called for coordinated action on artificial intelligence regulation following the release of the Productivity Commission's interim report on Harnessing Data and Digital Technology.

The Australian Computer Society (ACS), which represents technology professionals across the nation, expressed its general support for the Productivity Commission's report, particularly its focus on improving digital skills, fostering innovation, and addressing gaps in capabilities.

However, ACS raised concern over the Commission's recommendation to pause the introduction of mandatory AI guardrails. The organisation emphasised that such a pause could undermine both business certainty and public trust.

Regulation concerns

Josh Griggs, ACS Chief Executive Officer, addressed the risks he sees in delaying regulatory action on artificial intelligence and the need for a clear framework to support both industry and the wider community.

"We welcome the Commission's commitment to technology-neutral regulation and agree that existing frameworks have gaps but delaying action on AI risks undermining public confidence and leaving industry in limbo. We need clear, risk-based rules that evolve with the technology and provide certainty for businesses and safeguards for the community. Our AI future depends not just on managing risk, but on growing capability, building trust, and connecting policy to impact," Mr Griggs said.

The ACS recommends moving forward with regulations that are able to adapt alongside the fast-developing AI landscape. The organisation supports a model where legislative gaps are closed in tandem with the building of national skills and trust in the technology.

Policy priorities

The ACS backed several of the Commission's proposals, such as an emphasis on digital skills and data governance, but also outlined further measures they believe are needed for Australia to respond promptly and in a coordinated way.

One suggestion is to fast-track a national technology skills framework. This could build upon Jobs and Skills Australia's taxonomy and also align with international benchmarks like the Skills Framework for the Information Age (SFIA) to better identify and remedy capability gaps within artificial intelligence and digital fields more broadly.

Additionally, ACS called for increased investment in AI-related research, development, and technology adoption to address what it describes as Australia's low R&D intensity compared to global competitors.

The organisation also advocates for more flexible and inclusive pathways into digital careers. This could include entry-level programmes in cybersecurity, "earn while you learn" models, and the removal of unnecessary degree requirements from job advertisements to widen access to technology roles in demand across the sector.

Mr Griggs commented on the importance of digital capability as core to the country's future:

"Digital skills are the foundation of Australia's economic future."

He continued by saying:

"The public wants reassurance that AI will benefit everyone, not just those who build it. That means expanding access to skills, strengthening regulation where needed, and supporting industries to adopt AI responsibly."

Digital Pulse findings

Recent findings from the ACS Digital Pulse 2025 report, which gathered responses from 300 senior executives and over 1,200 IT professionals, illustrate some of the scale of the challenges ahead.

The report revealed that 150,000 businesses in Australia are experiencing significant or severe digital skills shortages. Additionally, 45% of C-suite leaders report having only basic digital capabilities within their organisations. According to the report, digital tasks now comprise 39% of the average Australian worker's day, while the digital economy is found to support 1 million jobs and contribute AUD $134 billion annually.

Rather than advocating for a fundamental overhaul of current regulatory approaches to artificial intelligence, ACS is calling for progress to be made in parallel with capability development and the closing of existing legislative gaps.

Mr Griggs reiterated the need for timely action:

"We need to move forward with purpose," said Mr Griggs. "In the face of rapid innovation and increasing use of generative and agentic AI, clear, coordinated, and risk-based regulation must evolve in parallel with technology, not in its wake. A pause would only increase uncertainty for business and delay the development of the sovereign capabilities Australia urgently needs."