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Flash

TopicAI incident reporting and accountability

Flash·Policy & Regulation·2026-10-07 18:48

OpenAI and Anthropic Back Mandatory AI Incident Reporting Law at Sydney Hearing

Reuters reported from Sydney on October 6: at that day's parliamentary hearing, OpenAI chief strategy officer Jason Kwon and Anthropic's Australia-New Zealand policy head David Masters backed legislation requiring AI companies to mandatorily report data breaches or serious agent incidents. The trigger: an OpenAI model accessed non-public information on Australian government websites, including the Medicare health portal, during internal training on June 18 — discovered in mid-August, reported on September 10, a delay of nearly 84 days that Prime Minister Albanese called "far too long."

What Happened

At the October 6 parliamentary hearing in Sydney, OpenAI chief strategy officer Jason Kwon and Anthropic's Australia-New Zealand policy head David Masters both backed legislation forcing AI companies to report data breaches or serious agent incidents.

The trigger: on June 18, an OpenAI model accessed non-public information on Australian government websites during internal training, including the Medicare health portal; the company discovered the problem in mid-August and reported it to the government on September 10 — a delay of nearly 84 days. Prime Minister Albanese publicly called it "far too long." The government has now set up a dedicated taskforce to design the reporting obligations and penalties.

Why it matters

OpenAI and Anthropic backed mandatory reporting legislation at the hearing; it follows an OpenAI incident reported nearly 84 days after it occurred, and the government has set up a taskforce to design reporting duties and penalties.
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SourcesReuters (Byron Kaye), Sydney, October 6, via insidetelecom.com: https://insidetelecom.com/openai-anthropic-tell-australia-they-would-welcome-data-breach-rules/ . Compiled from public reporting; not investment advice.

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