“This Institute is a timely and constructive step”: Aussie partners discuss the federal government’s new AI safety institute

CRN Australia takes a pulse check of the channel about the new institute launching in 2026.

Earlier this week, the Australian federal government unveiled its AI safety institute (AISI), a new organisation to help evaluate new AI technologies within the country.

Announced by the department of industry, science and resources, the AISI will reportedly provide trusted, expert capability to monitor, test and share information on emerging AI technologies, risks and harms.

In a statement, Tim Ayres, the minister for industry and innovation, and minister for science said, “The Government will ensure the Institute has capability to ensure AI companies are compliant with Australian law and uphold legal standards around fairness and transparency.”

So how will this impact the Australian channel? CRN Australia spoke to several partners and distributors within the channel to hear their opinions on how the AISI will affect their industry.

Jane Robinson, COO, at MSP Avocado

Robinson said Avocado welcomes the establishment of the Australian AI Safety Institute.

“The rapid pace of AI innovation brings enormous opportunity in productivity, competitiveness, and new services - but also increasing concerns around governance, skills and risk,” she explained.

“This Institute is a timely and constructive step toward ensuring Australia can both protect the public and unlock the productivity and economic gains AI promises. If done well, it will strengthen safeguards while creating the conditions for responsible, accelerated adoption.”

For organisations like Avocado, and for partners across industry, the Institute has the potential to provide much-needed clarity and maturity in an area that is currently fragmented, Robinson explained.

“Right now, there is no unified approach to AI governance in Australia,” she said.

“If implemented effectively, the Institute could shift the landscape from piecemeal compliance to a more coherent and consistent framework - making it easier for businesses of all sizes to manage risk while still pursuing opportunity.”

However, she said, the level of authority the Institute holds, how it interacts with regulators and policymakers, and how closely it works with business and industry will be key.

“Whether its role becomes a source of mandatory requirements or more of a guiding body will significantly shape its impact. This clarity will be essential to ensure guardrails support - rather than hinder – innovation,” she said.

Caution remains important, Robinson warned.

“If the Institute’s outputs become too prescriptive too early, there is a genuine risk of stifling innovation, especially for smaller organisations or early-stage adopters,” she explained.

“There is an incredible amount of new AI capability emerging that has the potential to transform the business landscape. Striking the right balance between providing ‘safety guardrails’ and acting as a ‘growth enabler’ for AI will be critical.

“The goal should not be regulation for its own sake, but a framework that fosters innovation while ensuring the right safeguards are firmly in place.”

Craig Howe, CEO, V2 AI

“The creation of a new AI Safety Institute is a welcome step that strengthens Australia’s AI safety efforts and aligns with global moves to centralise AI safety oversight,” Howe said.

“Our latest State of AI in Australia report revealed that while 80 percent of organisations say AI is a business priority, data security and ethical concerns remain the top two barriers to adoption.”

Howe explained that V2 AI is committed to partnering with industry and government organisations to build an AI ecosystem that supports continuous assurance, organisational readiness, security and supply chain management essential to ensuring safe and responsible AI.

“This will equip organisations with the capability and guardrails that contribute to consumer confidence, thereby accelerating innovation so they can achieve measurable value and compete on a global scale,” he ended.

John Brown, senior general manager – strategy, AI and emerging vendors at Ingram Micro Australia

“If Australian AI Safety Institute (AISI) is done right, it could be one of the most important things the Australian Government does right now,” he said.

“But execution is everything. Because AI is moving so fast, any safety framework has to be very agile, or it risks becoming irrelevant or plagued with over-regulation.

“If the Government genuinely partners with the Australian IT channel who are at the coalface of real-world AI deployments every day, AISI has the opportunity of striking the right balance of appropriate levels of safety without constraining the enormous opportunity that AI offers Australian businesses.”