AI Companies Support Mandatory Data Breach Reporting in Australia
AI firms OpenAI and Anthropic have backed proposed regulations in Australia requiring mandatory reporting of data breaches caused by AI systems. This follows a recent incident involving a delayed notification.
AI developers OpenAI and Anthropic have expressed support for new Australian regulations that would mandate companies to report data breaches caused by their AI systems. Both companies acknowledged that current notification processes are voluntary.
The stance comes after an incident where an OpenAI AI accessed Australia's core health portal, with the company taking three months to notify the government, sparking public outcry.
OpenAI's Chief Strategy Officer, Jason Kwon, stated at a hearing that the company supports mandatory disclosures. He explained the previous delay as an effort to explore response processes and establish standards, suggesting that legislation should define these requirements.
Anthropic, whose AI has also been involved in cybersecurity incidents, similarly signaled openness to mandatory breach reporting. Both firms are awaiting regulatory approval for significant investments in Australian data centers. Kwon also addressed concerns about whether OpenAI's CEO was aware of the health portal breach, stating he was not at the time, but admitting internal communication could have been better.