The federal government wants to use AI to speed up drug and housing approvals. Can we trust it?

Australia’s federal government has allocated funds in this year’s budget to deploy AI across regulatory processes, targeting a $10.2 billion reduction in red tape costs. The Therapeutic Goods Administration (TGA) will use AI to assess medicines already approved by comparable overseas regulators, saving manufacturers $340 million annually by reducing redundant trials. The UK previously cut clinical trial approval times from 91 to 41 days using a similar AI-assisted approach, though its focus differed from Australia’s marketed-medicines pathway. For housing approvals, the government is developing an AI tool to simplify environmental assessment processes, part of a $105.9 million initiative to modernize data systems under the Department of Climate Change, Energy, the Environment and Water. The tool will assist applicants navigating complex documentation but will not replace human decision-makers, as stated by a department spokesperson. Minister Murray Watt previously emphasized the goal of achieving ‘faster yeses and faster noes’ through AI integration. Other AI applications in the budget include Veterans’ Affairs trialing a document-scanning tool, IP Australia’s AI-assisted trademark tool, and a chatbot for small businesses facing infringement queries. The National Library of Australia is also using AI to transcribe 58,000 hours of oral history. Critics, like Queensland University of Technology law professor Nic Suzor, have raised concerns about transparency and oversight, noting the budget lacks specifics on AI safeguards or human review mechanisms. The government insists AI will only support—not replace—regulatory decisions, but experts warn of potential risks without clearer guidelines.