Australia Issues Legal Notices To AI Firms Under Online Safety Act

Australia’s e-Safety Commissioner Julie Inman Grant has registered six new industry codes under the Online Safety Act to regulate AI chatbots and other digital services. The codes, developed by industry groups, are legally enforceable and focus on protecting children from harmful content.

Noncompliance can result in penalties of up to AUD 49.5 million. On October 23, 2025, the Commissioner issued legal notices to four AI companion providers—Character.ai, Nomi, Chai, and Chub.ai—requiring them to explain how they prevent children from accessing explicit or self-harm-related material. Failure to respond could lead to daily fines of up to AUD 825,000. The action follows earlier enforcement against a UK company for violating online safety standards. While evidence of chatbot-related harm in Australia is limited, the Commissioner maintains that the measures are necessary to ensure online safety and accountability in emerging AI-driven platforms.