OpenAI’s Sydney launch sparks fresh focus on AI governance
OpenAI, the developer behind ChatGPT, has chosen Sydney as the site of its first Australian office, marking a major milestone in the country’s expanding technology landscape.
The decision places Australia on the global map of emerging AI innovation hubs, joining cities such as London, Dublin and Tokyo where the US-based company has established operations.
The announcement comes at a critical moment for the governance and regulation of artificial intelligence in Australia.
While OpenAI’s move signals confidence in Australia’s talent pool and research ecosystem, it also reinforces the need for strong frameworks to guide the ethical development and use of AI technologies.
Governance Institute of Australia has consistently advocated for policies that protect creativity, privacy and independence in the face of rapid technological advancement.
Daniel Popovski, Senior Advisor, Policy and Advocacy, Governance Institute of Australia said that “Privacy and copyright laws should reward creativity and independence.”
“AI technologies should enhance not replace human creativity.”
In its 2025 Ethics Index, the Institute found that 56% of Australians believe AI companies should be required to obtain permission and pay creators when using copyrighted material to train AI systems, and 77% support new protections for artists and other creatives whose work or likeness may be replicated by AI.
The Governance Institute welcomed the Federal Government’s decision to rule out copyright exemptions for tech companies training AI on local content.
This stance, it said, helps to ensure “local creative content is not compromised for the benefit of big tech companies.”
As global AI leaders such as OpenAI set up local operations, the Institute emphasises the importance of ensuring innovation does not come at the cost of ethics.
“Government must ensure local industries and workers at high risk of harm from AI technologies are protected from unethical text and data mining,” said Mr Popovski.