
OpenAI hack on Australian government reveals anxiety at heart of global artificial intelligence dilemma
As the UN warns traditional safeguards are âÂÂunravellingâÂÂ, Donald Trump says he will encourage, not restrain, the AI race
When the Australian prime minister, Anthony Albanese, sat down for an interview in the heart of Silicon Valley at the weekend he had known for two days that his was the first government known to have been attacked by a rogue AI agent.
He didnâÂÂt reveal the attack then, but he sounded a warning about the march of AI: âÂÂthe risk is that AI develops in a way in which humans are no longer in control of what AI is producing.âÂÂ
But Albanese noted, too, that two countries â the US and China â would dominate the worldâÂÂs response to the new technology.
âÂÂThe truth is theyâÂÂre the big two giants here, and so we want to see cooperation,â Albanese said.
âÂÂThe US is essentially ahead of China when it comes to the race that is on for the development of this new technology. But it is in the worldâÂÂs interests that there be engagement.âÂÂ
Days later, Albanese used the global attention of the United Nations general assembly meeting in New York to reveal that AustraliaâÂÂs government healthcare system, Medicare, had been attacked by an OpenAI agent in June, but that it was three months before his government was told.
Again he warned of âÂÂthe potential risks of allowing frontier AI to develop too fast without guardrailsâÂÂ.
ChinaâÂÂs president, Xi Jinping, skipped the general assembly in favour of a bilateral meeting with the US president, where he emphasised the responsibility to manage AI âÂÂfor good, and ensure that the development of AI is always under human control and serves the wellbeing of the peopleâÂÂ.
But the president of the United States â the nation which is the global leader in artificial intelligence â used his general assembly address to insist he would only encourage, not restrain, the AI race.
Alarms sounding
To little fanfare earlier in the week, the UNâÂÂs independent international scientific panel on AI warned a threshold had already been crossed.
There was, the panel, said: âÂÂno assurance that humans can reliably keep AI agents under control today, particularly as they become more capable, harder to monitor and better at finding loopholes or hiding their activityâÂÂ.
The Australian government had known the reality of this for more than a week. OpenAI had known it more than a month.
Two days after the panelâÂÂs statement, the Australian prime minister belatedly revealed an OpenAI agent had hacked medical data held by AustraliaâÂÂs universal health care provider, Medicare.
No patient data had been accessed, but the agent had gained unauthorised access to âÂÂnon-public filesâÂÂ.
OpenAIâÂÂs agent hacked the government sites in June of this year. OpenAI discovered its agent had gone rogue in August. It did not tell the Australian government until 10 September, and then only with a solitary email to a generic public email address not checked until the next day. The prime minister was informed on 18 September.
It was another week before the Australian people were told.
Australia has promised, if it is possible, to lay criminal charges, though this is complicated by the fact that OpenAI claims the hack was committed by an AI agent â apparently acting beyond its instructions (euphemised by OpenAI as âÂÂmisaligned behaviourâÂÂ) â not a person.
The hack on AustraliaâÂÂs Medicare statistics reporting service portal, as well as three other government sites, follows the Hugging Face incident in July, in which autonomous AI agents developed by OpenAI broke out of their isolated testing environments, coordinated themselves into a âÂÂswarmâ and launched a cyber-attack on competitor AI platform Hugging Face.
TimelineThe OpenAI Medicare hack
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OpenAI agent hacks into Australian Institute of Health and Welfare, the Victorian Department of Health, the New South Wales Bureau of Crime Statistics and Research, and the Medicare statistics reporting service portal of Services Australia.
OpenAI becomes aware of agent hack.
OpenAI email Services Australia's public portal.
Services Australia checks email and identifies the issue.
Services Australia notifies Australian Signals Directorate, and ASD do further work to verify the incident.
Government services minister, Katy Gallagher and her ministerial office are advised of the hack and further investigate the seriousness of the incident.
Gallagher receives formal briefing from services Australia.
Gallagher notifies prime minister, deputy prime minister and home affairs minister. Discussions take place between ministers, Services Australia and ASD.
OpenAI provides first technical briefing with Services Australia, the first direct sharing of information from Open AI to Services Australia.ÃÂ
Government waits for confirmation about risks of announcing information publicly and ensuring it is in interests of national security.
6am Australian eastern standard time PM Anthony Albanese announces breach in New York.
10.45amÃÂ Deputy PM Richard Marles and Gallagher address Australian media.
The UN panel, investigating that attack, warned âÂÂthe traditional method of safeguarding is unravellingâ as AI agents act autonomously to breach protections.
âÂÂThe default interpretation and immediate lesson is that basic cybersecurity practices were overlooked, and safeguards are not advancing at the pace of capabilities. The more insidious and grave concern is that current training methods can lead agents to adopt goals of their own, knowingly violate safety instructions, and conceal their actions.âÂÂ
Twenty countries (including Australia) and the EU this week signed a statement arguing the rapid development of frontier AI models posed serious risks to safety and security if not properly managed.
âÂÂAI must remain under human direction, oversight and control. It must be developed and used in line with international law.âÂÂ
Too soon?
Even those running AI companies have warned the technology is developing too rapidly for humans to control.
Appearing before the UN security council this week, OpenAIâÂÂs chief executive, Sam Altman, warned: âÂÂsome of the things people working to build AI have said are so dystopian that they sound like the plot of bad science fiction moviesâÂÂ.
âÂÂAs AI systems become more capable and more autonomous, they can move faster than our institutions ⦠or make decisions that people no longer understand or control.âÂÂ
But there are at least two â very loud â voices in opposition to any external regulation of the AI industry.

Elon Musk, who co-founded OpenAI with Altman before falling out with him, said in a recent interview the âÂÂsmart moveâ would be to have the âÂÂleading AI companies at least just meet or have some sort of call once every few weeks and just discuss any safety and security issuesâÂÂ.
Musk said AI would probably be beyond the control of humans within a decade, and that humanity should âÂÂenjoy the rideâÂÂ.
âÂÂI still think thereâÂÂs risk associated with AI and robots. ItâÂÂs not zero ⦠my sort of philosophical conclusion is to look on the bright side. I canâÂÂt see any way to really stop this incredible momentum of AI and robots.
âÂÂIf there was a stop button, we probably shouldnâÂÂt press it, because the most likely outcome is incredible abundance for all.âÂÂ
Donald Trump used his speech to the UN general assembly to attempt to rebrand AI, and insist it should never be reined in.
âÂÂThe United States also totally rejects any attempt to construct a globalist scheme to control for the artificial intelligence being spoken of so much now,â the US president said.
Trump wants to re-label artificial intelligence âÂÂsuperintelligenceâÂÂ.
âÂÂIâÂÂm not going to stifle growth of something that will be bigger than the Industrial Revolution.
âÂÂWeâÂÂre going to encourage it, not rein it in.âÂÂ
Trump said the US was âÂÂleading China by a lotâ in AI, and would continue to do so âÂÂsafely and responsiblyâÂÂ.
âÂÂWhoever wins superintelligence, wins.âÂÂ
