South Australia’s Royal Commission into Artificial Intelligence: Why Every Organisation Should Be Paying Attention

The South Australian (SA) Royal Commission into Artificial Intelligence (AI) is the first inquiry of its kind in Australia and has the potential to become a significant reference point for future AI regulation, governance and policy development nationally.

The Commission formally commenced on 1 October 2026 and is tasked with examining how AI can drive economic and social benefits while ensuring appropriate safeguards against associated risks.

Organisations should not assume that this inquiry is relevant only to SA. The issues being examined, including governance, workforce impacts, privacy, accountability, public trust and regulatory design, are challenges faced by organisations across Australia and internationally.

Businesses, government agencies, universities, schools, healthcare providers, employers, technology developers and not-for-profit organisations operating in any Australian jurisdiction should monitor the inquiry closely and consider participating in it.

The Commission provides an ideal opportunity for organisations to contribute to the future direction of AI policy, and to critically assess whether their own AI governance, risk management and strategic planning frameworks are keeping pace with the rapidly evolving technology.

AI is rapidly transforming how organisations operate, make decisions, deliver services and engage with customers. Although the Royal Commission is focused on SA, it will likely influence the future regulatory, governance and policy landscape for AI across Australia.

The Commission has been given an unusually broad mandate. It is examining not only the technology itself, but also the economic, legal, workforce, educational and societal implications of AI. Its Terms of Reference require consideration of productivity, innovation, labour markets, workplace practices, education, public services, regulation, accountability and community trust.

Importantly, the Commission has been asked to recommend policy, legislative and structural reforms to support the safe and responsible development, deployment, adoption and use of AI.

Historically, major law reform initiatives developed at State level often influence regulatory approaches elsewhere in Australia. Recommendations emerging from this Royal Commission may:

• Shape future state and national AI governance frameworks
• Influence regulators’ expectations regarding AI risk management and accountability
• Inform future legislation, regulatory guidance and industry standards
• Influence procurement requirements and contractual obligations
• Establish emerging best-practice principles for responsible AI governance.

The Commission has also been directed to consider work undertaken in other jurisdictions nationally and internationally, signalling that its recommendations are likely to be informed by global developments rather than confined to uniquely South Australian concerns.

For organisations already using AI, planning AI deployments, or relying on third-party software containing AI functionality, this inquiry represents an important opportunity to help shape the policy environment that will govern future AI adoption in Australia.

Governance and accountability

The Commission places significant emphasis on ensuring that AI remains human-centric, safe and responsible. It specifically references the need for legal and regulatory safeguards, accountability mechanisms and responsible management practices throughout the AI lifecycle. Organisations should be considering:

• Who approves AI deployment
• How AI risks are identified and assessed
• What level of human oversight exists
• Whether decision-making processes remain transparent and explainable
• Whether governance documentation is adequate and defensible.

Workforce impacts and employment

The Terms of Reference expressly require consideration of AI’s effects on labour markets and workplace practices, including measures to mitigate negative employment impacts. Employers should be assessing:

• Workforce displacement risks
• Changes to job design
• Employee consultation processes
• Staff reskilling and training requirements
• The use of AI in recruitment, performance management and workplace monitoring.

Privacy, data governance and sovereignty

The Commission has been directed to examine issues relating to data sovereignty and strategic autonomy over AI systems, data and critical capabilities. Many organisations remain uncertain about:

• Data ownership
• Cross-border data transfers
• Use of customer information in AI systems
• Training data governance
• Data retention and security practices.

Community trust and reputational risk

The inquiry specifically identifies the impact of AI on trust, civics and democratic processes. Public acceptance will be critical to successful AI adoption. Organisations should consider:

• Transparency in AI-assisted and automated decision making
• Communication with customers and stakeholders
• Ethical deployment practices
• Mechanisms for complaints and human review
• Managing misinformation and AI-generated content risks.

Regulatory uncertainty

Many organisations are currently navigating a fragmented regulatory environment involving privacy laws, consumer protection laws, employment obligations, anti-discrimination requirements, intellectual property considerations and sector-specific regulation.

The Royal Commission is expressly examining the policy and regulatory settings required to encourage AI innovation while ensuring appropriate safeguards. Businesses that can demonstrate examples involving current regulation creating barriers, uncertainty or unintended consequences have an opportunity to contribute meaningfully to reform discussions.

The Royal Commission has been directed to consider the views of businesses, industry bodies, unions, technology developers, academics, community representatives and other stakeholders. Organisations wishing to engage should begin preparing now. Well-supported submissions backed by evidence, case studies and practical experience are likely to carry significant weight and may influence future recommendations.

The Royal Commission has established a dedicated website (https://www.royalcommissionai.sa.gov.au/) and stakeholder engagement process through which organisations can follow developments, subscribe for updates and participate in future consultations.

The Royal Commission presents an opportunity. Organisations that engage early will be better positioned to influence policy outcomes and prepare for future regulatory developments. Moray & Agnew’s team can assist clients in meaningful ways.

Submissions to the Royal Commission

We can help organisations identify issues relevant to their operations, develop evidence-based submissions, present practical experiences and policy recommendations and engage effectively with the inquiry process.

Review AI governance and compliance frameworks

We can advise on AI governance frameworks, board and executive oversight obligations, risk management processes, accountability structures and documentation and record-keeping practices.

Assess legal and regulatory risk

Our team can assist in relation to privacy and data governance, consumer law issues, contractual risk allocation, regulatory compliance obligations, and employment and workplace implications.

Conduct AI readiness assessments

We can help organisations identify current AI use cases, governance gaps, regulatory risks and policy and training requirements.

Support boards and executives

As AI increasingly becomes a strategic and governance issue, directors and senior executives require practical advice regarding oversight responsibilities, risk management and emerging legal obligations. We can monitor developments arising from the Royal Commission and provide practical guidance on the implications of emerging recommendations, legislative reforms and regulatory expectations.