Australia’s federal government has scrapped plans for a permanent AI Advisory Body after spending 15 months and nearly AUD $200,000 identifying experts to serve on it, according to reporting by ABC News. The move comes as the government pivots toward a new AI Safety Institute expected to launch in early 2026.

ABC reports that the advisory body, originally announced in 2024 by then-Industry Minister Ed Husic, was designed to help develop “AI guardrails” and guide national policy. Department records cited by ABC show officials narrowed a pool of 270 experts down to 12 nominees, with recruitment and administrative costs totaling about AUD $188,000. However, the initiative was abandoned before appointments were finalized.

The decision followed a broader shift in government strategy away from mandatory AI guardrails — which could have required new legislation — toward a more flexible, lighter-touch regulatory approach. In December, Industry Minister Tim Ayres and Assistant Technology Minister Andrew Charlton announced the replacement AI Safety Institute, backed by AUD $29.9 million in funding.

A spokesperson for the minister told ABC that the new institute would provide a “more dynamic and responsive approach,” with the ability to test, monitor, and identify regulatory gaps as AI technologies evolve. The government said it would continue consulting external experts rather than relying on a standalone advisory board.

ABC’s reporting also highlighted internal communications showing concern about how to manage reactions from shortlisted nominees after the body was canceled. While the department planned to notify all applicants, ministerial staff reportedly directed officials not to contact the broader applicant pool.

Experts have raised concerns about delays in establishing long-term oversight structures. Professor Toby Walsh, who served on an interim expert panel, told ABC Radio National that Australia risks missing a “narrow window of opportunity” to regulate AI safely before harms become entrenched.

The forthcoming AI Safety Institute will operate within the Department of Industry, Science and Resources and is expected to coordinate expertise from government agencies, industry, and international partners as Australia continues shaping its AI policy framework.

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