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AI on the Metaverse – Australia – May 2025

Metaverse, 3D virtual digital platforms, if accessible by users located in Australia, will be subject to Australian laws, even if the owners or operators of the platforms are not registered businesses or companies in Australia and do not have a physical presence in Australia. While Australia does not currently have specific laws that regulate the use of AI on the metaverse, Australia’s existing legal framework is used to regulate AI technologies across all industries.

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Regulation of AI in Australia – What next?

This Article provides an overview of Australia’s existing regulatory framework used to regulate AI technologies, the ongoing government consultations and proposed reforms to the laws. Using the failed Robodebt system as a case study, it also showcases the risks associated with failed AI systems, including claims for compensation in the billions of dollars and reputational damage that follows.

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