.png)
The AI Future: A Responsible Approach to Emerging Risks
Authored by Andrew Truswell and Casper Xiao.
The rapid advancement of Artificial Intelligence (AI) has raised concerns about its potential negative impacts on society and the economy. As demands for AI regulation increase, it is crucial to understand and address the risks associated with this technology. In this thought leadership article, Andrew Truswell from Biztech Lawyers explores the pressing need for regulation, provides insights into AI definitions and risks, discusses existing legislation's handling of AI risks, highlights international developments in AI regulation, and emphasizes the importance of safe and responsible AI practices.
We ensure companies developing or using AI stay ahead of the curve, legally and ethically. From data use and privacy to IP, compliance, and emerging regulations, our AI law experts are here to help.
The need for AI regulation
AI’s benefits are evident, but the growing demand for regulation is unprecedented. The concern arises from the potential harm to our social and economic wellbeing when it produces fake or misleading outputs. To address these concerns, the Australian Government has released a Discussion Paper which lifts the lid on these concerns, examining regulatory approaches within Australia, and comparing them to international advancements in other jurisdictions.
What is AI?
While a universally agreed-upon definition of AI does not currently exist, the Discussion Paper offers helpful definitions to enhance understanding. This includes the term Generative AI models, which is used to describe models “which generate novel content, such as text, images, audio and code in response to prompts.”
The European Parliament’s Draft AI Act defines broadly AI as:
“a machine-based system that is designed to operate with varying levels of autonomy and that can, for explicit or implicit objectives, generate outputs such as predictions, recommendations, or decisions that influence physical or virtual environments”.
Risk-based approach to AI systems
The Discussion Paper identifies various opportunities and challenges associated with AI models. Notably, the production of fake outputs, including manipulative deepfakes, emerges as a grave concern. Additionally, the risks and challenges of misinformation, disinformation, and outputs that incite self-harm highlight the real and relevant issues surrounding AI.
The complexity is further amplified by the inclusion of entirely incorrect or wrong outputs (known as “hallucinations”) stemming from Generative AI. Embracing a risk-based approach becomes imperative to navigating the treacherous territories, and responsibly and securely deploying AI models.
Current handling of AI risks
The Discussion Paper highlights AI Risks in key industries, such as in financial services, airline safety, motor vehicles and food. As these industries are already subject to regulation, AI-specific regulations must be tailored to address the gaps. The Paper also acknowledges potential overlaps with proposed changes to the Australian Privacy Act and existing legal remedies for consumers under the Australian Consumer Law. Ethical standards outlined in Australia’s AI Ethics Framework released in 2019 are also referenced.
However, there are industries where existing domestic governance lacks adequate coverage, requiring the introduction of additional AI regulations for safe and ethical AI usage.
AI international developments
After setting the global standard for data protection with GDPR, which applies extraterritorially to Australian businesses who process data (either as controller or processor), or offer services in the EEA, the European Parliament passed a compromise text of the AI Act, at the committee stage in June. If this law is passed, it will categorise AI in several risk categories, and ban those placed in the most harmful category (being systems deemed to pose an unacceptable risk, such as social scoring systems that conduct remote surveillance on people in real time in public spaces). The law may not pass until 2025, but it could become a global standard for AI, similar to GDPR.
The Discussion Paper acknowledges these developments and highlights other initiatives worldwide, such as the EU Digital Services Act (DSA) (Nov 2022), which applies to digital services that connect consumers to goods, services or content, creating obligations for online platforms to reduce harm, and counter online risks.
The United States continues to take a fragmented approach to AI regulation. There is currently no comprehensive federal AI statute. The only standalone federal AI-related law enacted to date is the TAKE IT DOWN Act (May 2025), which targets non-consensual intimate imagery and deepfake abuse.
AI regulation in the US remains largely state-driven, with jurisdictions such as Colorado and California advancing high-risk AI and automated decision-making rules. Federal agencies continue to rely on existing authorities, including consumer protection, competition and sector-specific powers, rather than a single unified AI framework.
Since this article was first published, Australia’s AI policy direction has materially shifted. In December 2025, the Government confirmed it would not introduce standalone AI legislation or mandatory AI guardrails. Instead, AI is regulated through existing legal frameworks — including the Privacy Act 1988 (Cth), Australian Consumer Law, anti-discrimination law and sector-specific regimes, supported by the voluntary Guidance for AI Adoption (October 2025).
The Government is also establishing the Australian AI Safety Institute (AISI) in 2026, backed by AUD 29.9 million in funding, to support safe and responsible AI deployment.
Safe and responsible AI best practices
Australian businesses must understand the current regulatory framework and anticipate future regulations based on existing laws and future proposed laws and regulations, on both a domestic and international front. Given the rapid growth of AI technology impacting personal information, businesses must navigate their obligations meticulously. The Discussion Papers on AI and Privacy are complex, and compliance with the forthcoming regulations will require heightened attention to meet the expectations of Australians and regulatory authorities.
Final thoughts
In conclusion, the Discussion Papers on AI and Privacy have emphasized an urgent need for AI regulation due to its potential risks. By understanding the nature of AI, adopting a risk-based approach, addressing gaps in existing legislation, and keeping abreast of international developments, businesses can navigate the legal landscape surrounding AI. It is crucial to prioritize safe and responsible AI practices to protect individuals and uphold ethical standards. Biztech Lawyers stands ready to assist businesses in navigating the legal challenges posed by AI.
Biztech Lawyers
Biztech Lawyers is an agile law firm comprising technology and data law experts who closely monitor the regulatory landscape across Australia, the UK, and the USA. Our expertise allows us to navigate the legal frontier of AI, ensuring businesses comply with evolving regulations and industry standards.
In need of legal support from a tech lawyer? Biztech Lawyers is a multi-award-winning law firm, known for fuelling and protecting tech innovation worldwide. Get in touch now to see how we can help.
Biztech Lawyers provides the material on its web pages for information purposes only, not as legal advice. We do not intend these web pages to create an attorney-client relationship with you, and you should not assume such a relationship or act on any material from these pages without seeking professional counsel. This website is considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome. In Australia, liability limited by a scheme approved under Professional Standards Legislation.
Introducing Biztech
International law firm Biztech Lawyers elevates clients, providing vision and confidence to navigate global markets and seize opportunities.
Get Started
Frequently Asked Questions
No items found.
Discover more
Whether you’re looking for advice in a particular jurisdiction or exploring how we can help expand your business, discover more below.
Frequently Asked Questions
No items found.
Frequently Asked Questions
How is Biztech Lawyers different from a traditional corporate law firm?
What is a stock transfer form (share transfer form) in the UK?
What is the purpose of a stock transfer form?
Do I need a share transfer form if no money changes hands?
What is the difference between a share transfer form and a share certificate?
What details need to be included on a UK stock transfer form?
Do you pay stamp duty when you transfer shares in the UK?
What are the most common mistakes when completing a stock transfer form?
What happens after you submit a stock transfer form to update the register?
Do I need a lawyer to complete a stock transfer form in the UK?
What should I check before transferring shares in my company?
What is an intellectual property agreement?
What types of intellectual property are most relevant to an IP agreement?
Who owns IP created by an employee during their employment?
Do I need an intellectual property assignment agreement with freelancers or sub-contractors?
What should I check before signing an intellectual property licence agreement?
Why is an intellectual property agreement important?
What warranties should be included in an IP agreement?
What is an indemnity in an IP agreement, and why does it matter?
Do I need an IP clause in my consultancy or service agreement?
Do I need a lawyer to draft or review an intellectual property agreement?
What was the UK Data Protection and Digital Information Bill, and why was it so debated?
How was the Data Protection and Digital Information Bill supposed to lighten the burden on UK businesses?
How much could the DPDI Bill have saved small and micro-businesses in compliance costs?
Do I still need to appoint a data protection officer, or does a senior responsible individual replace it?
Do I still have to complete a data protection impact assessment under the proposed reforms?
Can I refuse a data subject access request if it is vexatious or excessive?
What are recognized legitimate interests, and do I still need a balancing test?
Why does UK data protection reform not help much if my company also operates in Europe?
Does UK data protection reform put EU adequacy and my data transfers at risk?
What happened to the Data Protection and Digital Information Bill, and which UK law applies now?
What is a SaaS agreement?
Do I need a SaaS agreement for my software business?
What is the difference between a SaaS agreement and a software license?
What clauses should a SaaS agreement include?
How do I avoid hidden costs and surprise price increases in a SaaS contract?
Who owns the intellectual property in a SaaS platform?
What should a service level agreement (SLA) cover in a SaaS agreement?
What data protection and privacy terms does my SaaS agreement need?
What happens to my data when I terminate a SaaS agreement?
Can a limitation of liability clause in a SaaS agreement be unfair under Australian Consumer Law?
What is intellectual property, and what does it actually cover in my business?
Do I need to register copyright in Australia to protect my software and content?
How long does a patent last, and what does it actually stop my competitors from doing?
How do I register a trade mark for my business name or logo, and why is it worth doing?
How do I protect a trade secret if I have to share it with a developer or a business partner?
Can I still register a design for my product if I have already posted photos of it online?
Who owns the IP my employees create, and does the same rule apply to contractors?
What should an IP assignment clause say when I hire a consultant or a freelancer?
Why do investors care so much about my intellectual property during due diligence?
What can I do if someone is infringing my intellectual property?
What are the most common legal hurdles tech startups face in an M&A deal?
How do I prepare my tech startup for M&A due diligence?
Why does intellectual property ownership matter so much when selling a tech startup?
Do I need signed IP assignment agreements from contractors and former employees before an acquisition?
What data privacy issues can delay or reduce the value of a tech M&A deal?
Do I need regulatory or antitrust approval to sell my tech company?
How do change of control clauses in customer contracts affect an acquisition?
What should I check on my cap table before starting an M&A process?
What are representations, warranties, and indemnities in a startup acquisition, and why do they matter to founders?
When should I involve a lawyer in selling my tech startup?
What are the key elements of cybersecurity every business should have in place?
How do I start building a cybersecurity program for my startup?
What is the Global Legal Toolkit for AI?
How do I start planning a successful business exit?
Do I really need a contract lawyer to review a B2B contract before I sign it?
What is a vendor agreement?
What are equity warrants?
What is a shareholder voting agreement, and how does it create a voting bloc?
What is a licensing agreement?
What laws do I need to think about before I launch an AI product?
What is the difference between a share sale and an asset sale when I sell my business?
What does a commercial solicitor or contract lawyer in the UK actually do for my business?
What is the purpose of a vendor agreement?
What types of equity warrants are there?
Are shareholder voting agreements legally enforceable in the UK and Australia?
What types of licensing does a licensing agreement typically cover for a tech business?
Do I need to comply with the EU AI Act if my company is not based in the EU?
Why do I need to conduct internal due diligence before putting my business up for sale?
What should I expect to receive from a contract review?
How do vendor agreements protect a business?
Are equity warrants classed as debt or equity?
What voting rights and terms should a shareholder voting agreement cover?
What other types of licences might a tech business need?
Who owns the content my AI tool generates?
How do I work out what my business is worth before negotiating with a buyer?
Why are "standard terms" in business contracts risky if everyone uses them?
What should be included in a vendor agreement?
How do equity warrants work in practice?
What are common mistakes when drafting a shareholder voting agreement?
What are the risks of entering into a licensing agreement?
What should a contract for an AI system include?
What happens if a buyer finds skeletons in the closet during due diligence?
How do I choose the right commercial solicitor or contract lawyer in the UK?
What are the most common pitfalls in vendor agreements?
What are the key features of an equity warrant?
Can a voting agreement compel a director to vote a certain way in board meetings?
What is the difference between a licensor and a licensee?
Can I train my AI model on copyrighted material I found online?
What is a heads of terms, and do I need one when selling my company?
Frequently Asked Questions
How is Biztech Lawyers different from a traditional corporate law firm?
What is a stock transfer form (share transfer form) in the UK?
What is the purpose of a stock transfer form?
Do I need a share transfer form if no money changes hands?
What is the difference between a share transfer form and a share certificate?
What details need to be included on a UK stock transfer form?
Do you pay stamp duty when you transfer shares in the UK?
What are the most common mistakes when completing a stock transfer form?
What happens after you submit a stock transfer form to update the register?
Do I need a lawyer to complete a stock transfer form in the UK?
What should I check before transferring shares in my company?
What is an intellectual property agreement?
What types of intellectual property are most relevant to an IP agreement?
Who owns IP created by an employee during their employment?
Do I need an intellectual property assignment agreement with freelancers or sub-contractors?
What should I check before signing an intellectual property licence agreement?
Why is an intellectual property agreement important?
What warranties should be included in an IP agreement?
What is an indemnity in an IP agreement, and why does it matter?
Do I need an IP clause in my consultancy or service agreement?
Do I need a lawyer to draft or review an intellectual property agreement?
What was the UK Data Protection and Digital Information Bill, and why was it so debated?
How was the Data Protection and Digital Information Bill supposed to lighten the burden on UK businesses?
How much could the DPDI Bill have saved small and micro-businesses in compliance costs?
Do I still need to appoint a data protection officer, or does a senior responsible individual replace it?
Do I still have to complete a data protection impact assessment under the proposed reforms?
Can I refuse a data subject access request if it is vexatious or excessive?
What are recognized legitimate interests, and do I still need a balancing test?
Why does UK data protection reform not help much if my company also operates in Europe?
Does UK data protection reform put EU adequacy and my data transfers at risk?
What happened to the Data Protection and Digital Information Bill, and which UK law applies now?
What is a SaaS agreement?
Do I need a SaaS agreement for my software business?
What is the difference between a SaaS agreement and a software license?
What clauses should a SaaS agreement include?
How do I avoid hidden costs and surprise price increases in a SaaS contract?
Who owns the intellectual property in a SaaS platform?
What should a service level agreement (SLA) cover in a SaaS agreement?
What data protection and privacy terms does my SaaS agreement need?
What happens to my data when I terminate a SaaS agreement?
Can a limitation of liability clause in a SaaS agreement be unfair under Australian Consumer Law?
What is intellectual property, and what does it actually cover in my business?
Do I need to register copyright in Australia to protect my software and content?
How long does a patent last, and what does it actually stop my competitors from doing?
How do I register a trade mark for my business name or logo, and why is it worth doing?
How do I protect a trade secret if I have to share it with a developer or a business partner?
Can I still register a design for my product if I have already posted photos of it online?
Who owns the IP my employees create, and does the same rule apply to contractors?
What should an IP assignment clause say when I hire a consultant or a freelancer?
Why do investors care so much about my intellectual property during due diligence?
What can I do if someone is infringing my intellectual property?
What are the most common legal hurdles tech startups face in an M&A deal?
How do I prepare my tech startup for M&A due diligence?
Why does intellectual property ownership matter so much when selling a tech startup?
Do I need signed IP assignment agreements from contractors and former employees before an acquisition?
What data privacy issues can delay or reduce the value of a tech M&A deal?
Do I need regulatory or antitrust approval to sell my tech company?
How do change of control clauses in customer contracts affect an acquisition?
What should I check on my cap table before starting an M&A process?
What are representations, warranties, and indemnities in a startup acquisition, and why do they matter to founders?
When should I involve a lawyer in selling my tech startup?
What are the key elements of cybersecurity every business should have in place?
How do I start building a cybersecurity program for my startup?
What is the Global Legal Toolkit for AI?
How do I start planning a successful business exit?
Do I really need a contract lawyer to review a B2B contract before I sign it?
What is a vendor agreement?
What are equity warrants?
What is a shareholder voting agreement, and how does it create a voting bloc?
What is a licensing agreement?
What laws do I need to think about before I launch an AI product?
What is the difference between a share sale and an asset sale when I sell my business?
What does a commercial solicitor or contract lawyer in the UK actually do for my business?
What is the purpose of a vendor agreement?
What types of equity warrants are there?
Are shareholder voting agreements legally enforceable in the UK and Australia?
What types of licensing does a licensing agreement typically cover for a tech business?
Do I need to comply with the EU AI Act if my company is not based in the EU?
Why do I need to conduct internal due diligence before putting my business up for sale?
What should I expect to receive from a contract review?
How do vendor agreements protect a business?
Are equity warrants classed as debt or equity?
What voting rights and terms should a shareholder voting agreement cover?
What other types of licences might a tech business need?
Who owns the content my AI tool generates?
How do I work out what my business is worth before negotiating with a buyer?
Why are "standard terms" in business contracts risky if everyone uses them?
What should be included in a vendor agreement?
How do equity warrants work in practice?
What are common mistakes when drafting a shareholder voting agreement?
What are the risks of entering into a licensing agreement?
What should a contract for an AI system include?
What happens if a buyer finds skeletons in the closet during due diligence?
How do I choose the right commercial solicitor or contract lawyer in the UK?
What are the most common pitfalls in vendor agreements?
What are the key features of an equity warrant?
Can a voting agreement compel a director to vote a certain way in board meetings?
What is the difference between a licensor and a licensee?
Can I train my AI model on copyrighted material I found online?
What is a heads of terms, and do I need one when selling my company?
Other Articles
.jpg)
.jpg)
.jpg)
Biztech Lawyers provides the material on its web pages for information purposes only, not as legal advice. We do not intend these web pages to create an attorney-client relationship with you, and you should not assume such a relationship or act on any material from these pages without seeking professional counsel. This website is considered attorney advertising in some jurisdictions. Prior results do not guarantee a similar outcome. In Australia, liability limited by a scheme approved under Professional Standards Legislation.
Subscribe to Our Newsletter!
Subscribe
Subscribe
Proudly supporting:
.svg)
.svg)