Can Labor handle a backlash over AI and data centres?

Political and social conflict may soon emerge from anxieties surrounding artificial intelligence and its supporting infrastructure, according to observations of both hard-left and hard-right politicians. Pauline Hanson, a populist leader, recently highlighted growing concerns about AI's impact on jobs in a speech, promising "mechanisms" to protect workers and advocating for stronger AI regulation.

Hanson's focus on AI reflects her ability to identify public anxieties. She warned that the technology's uncertainties require "enforceable safeguards." While she also discussed industrial relations, her strategic emphasis on job security anxieties resonated with voters. This concern extends beyond AI's direct effects to the broader implications of its development.

Simultaneously, the Greens are campaigning against the rapid expansion of data centers, arguing they strain power supplies, water resources, and local communities. These seemingly distinct debates, one about AI's societal impact and the other about its necessary infrastructure, pose a significant problem for the Labor government. The risk lies in the convergence of these anxieties, with Hanson addressing jobs and the Greens focusing on resources.

Adding to the complexity, independent senator David Pocock questions whether communities benefit sufficiently from these developments. The Coalition's industry spokesman, Andrew Hastie, has even compared the global AI race to the Cold War nuclear arms race, stressing Australia's need for sovereign capability to avoid dependence on foreign powers. This unusual alignment of concerns from progressives and populists presents a dangerous force for Labor to confront, potentially leaving the government appearing unprepared.