Blueprints and blind spots: Stakeholders weigh in on government’s National AI Plan

The release of the federal government’s National AI Plan has been met with mixed reactions from key stakeholders in the healthcare sector, including ANDHealth, the Digital Health CRC (DHCRC) and the Medical Software Industry Association (MSIA).

ANDHealth welcomed the release but cautioned that the plan does not fully address priority issues identified through overlapping AI in Healthcare consultations conducted by the Department of Health, the Therapeutic Goods Administration (TGA) and the Department of Industry Science and Resources.

“The National AI Plan recognises AI’s importance, transformative potential and sets a useful, economy wide framework, but it does not address the specific needs of the healthcare sector,” ANDHealth CEO Bronwyn Le Grice told Health Industry Hub.

She added, “Relying on sector specific regulators and agencies to deliver health specific AI guardrails and fit-for-purpose regulation is legislatively sound, but in practice those organisations will need funding and resources in order to be able to deliver a framework that works for the health and care economy.”

Le Grice emphasised the sector’s dual responsibility in embracing AI technologies.

“The reality is we need AI in healthcare in order to be able to deliver world class care for Australians into the future but the flip side is we need to deliver it safely and appropriately. The first principle of deploying tech in healthcare is always ‘do no harm’, therefore there is a lot of work to be done across a lot of regulators and agencies to ensure health specific guardrails are in place to prevent harm,” she explained.

The DHCRC expressed support for the National AI Plan, specifically welcoming the announcement of the Australian AI Safety Institute.

DHCRC CEO Annette Schmiede said, “The Plan is a strong signal of intent, but continued national focus on evidence generation will be essential to unlock AI’s true value in healthcare. Through our research and industry partnerships, the DHCRC is already working to generate and assess this evidence and evaluate AI’s real-world impact. But this work must be elevated as a national priority – particularly in these early days of low or no regulation, so clinicians, consumers, and policymakers can adopt AI safely and with confidence.”

The consultations from the Department of Health, TGA and the Department of Industry, Science and Resources, point to the need for clearer regulatory pathways, more defined risk classifications and strengthened post-market oversight.

“The National AI Plan can help operationalise these directions, but only if supported by a coordinated national approach to evidence generation that spans government, academia, and industry. A joint entity would enable the evidence base to meet the needs of regulators such as the TGA, PBS, and National Medicines Taskforce while supporting safe, trusted, and effective AI deployment across the health system,” explained Schmiede.

The MSIA provided a more optimistic outlook, stating the government “has done a great job of this plan”.

MSIA CEO Emma Hossack told Health Industry Hub, “It is incumbent on organisations like the MSIA and MTAA which jointly produced the Voluntary Code for the Use of AI in health software to demystify complexity and highlight benefits and risks so AI can be used safely, confidently and effectively. Twelve months on from overlapping AI consultations, Australia has a marvellous crisp, clear plan for AI.”

Despite the positive sentiment, the DHCRC cautioned that several foundational gaps remain unaddressed. These include the absence of a nationally funded, independent body capable of curating and evaluating evidence for high-risk and rapidly scaling clinical AI applications. The organisation also highlighted the need for systems that make AI evidence more discoverable and aligned with national digital health priorities, with stronger integration across responsible AI frameworks, transparency expectations, bias-mitigation approaches and data and technology standards.

Additionally, the DHCRC stressed the importance of establishing a common national framework to classify and differentiate AI systems, especially high-risk clinical tools, to support policy development, model registries, and risk assessment.

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