Australia threatens app stores, search engines in AI crackdown over age verification failures

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Australia's internet regulator eSafety warns it may target app stores and search engines to block AI services that fail to verify user ages. A Reuters review found over half of the 50 most popular AI platforms had not publicly committed to complying with the March 9 deadline, which requires restricting minors from harmful content or facing fines up to A$49.5 million ($35 million).

Australia Escalates AI Crackdown With Threat to Gatekeeper Services

Australia's internet regulator eSafety has issued a stark warning that it may push app stores and search engines to block artificial intelligence services that fail to verify user ages, marking one of the most aggressive efforts globally to rein in AI companies

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. The threat comes after a Reuters review found more than half of AI platforms had not made public any steps to comply by the March 9 deadline

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. This new age restrictions on AI follows Australia becoming the first country in December to ban social media for teenagers, citing concerns about safeguarding youth mental health .

Source: Benzinga

Source: Benzinga

Sweeping New Rules Target ChatGPT and Companion Chatbots

From March 9, internet services in Australia including search tools like OpenAI's ChatGPT and lesser-known companion chatbots must restrict Australians under 18 from receiving pornography, extreme violence, self-harm and eating disorder content or face fines of up to A$49.5 million ($35 million)

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. An eSafety spokesperson confirmed the regulator would "use the full range of our powers where there is non-compliance," including "action in respect of gatekeeper services such as app stores and search engines that provide key points of access to particular services"

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. The warning reflects mounting concerns that AI platforms are more harmful to youth mental health than social media, with researchers cautioning about the unique risks these tools pose

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Source: ET

Source: ET

Majority of AI Platforms Fail to Implement Age Verification

A week before the deadline, of the 50 most popular text-based AI products, only nine had rolled out or announced plans for age assurance systems, according to the Reuters review

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. Another 11 platforms had blanket content filters or planned to block all Australians from using their service, leaving 30 non-compliant AI services with no apparent steps taken to follow the new rules

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. While most large chat-based search assistants such as ChatGPT, Replika and Anthropic's Claude had started rolling out age assurance systems or blanket filters, three-quarters of companion chatbots had no functioning or planned filtering or age verification

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. Elon Musk's chat-based search tool Grok, which is under investigation globally for suspected failure to stop production of synthetic sexualized imagery of children, had no age assurance measures or content filtering, Reuters found .

Growing Concerns Over Emotional Manipulation and Excessive Usage

The regulator has reported being told about children as young as 10 talking to AI-powered interactive tools up to six hours a day, despite Australia not yet experiencing reports of chatbot-linked violence or self-harm

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. eSafety expressed concern that "AI companies are leveraging emotional manipulation, anthropomorphism and other advanced techniques to entice, entrance and entrench young people into excessive chatbot usage," according to the spokesperson . The urgency of these new regulations is underscored by recent wrongful death lawsuits faced by OpenAI and companion chatbot startup Character.AI over their interactions with young users

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. OpenAI also acknowledged this week that it deactivated the ChatGPT account of a teen mass shooting suspect in Canada months before the attack, without notifying authorities

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Source: Reuters

Source: Reuters

Tech Giants Remain Silent as Enforcement Looms

Top app store operator Apple did not respond to requests for comment but stated on its website last week that it would use "reasonable methods" to stop minors downloading 18+ apps in Australia and other jurisdictions introducing age restrictions, without specifying the methods . A spokesperson for Google, Australia's dominant search engine provider and second-largest app store operator, declined to comment

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. Jennifer Duxbury, head of policy at internet industry group DIGI, who led the drafting of the AI code before it was signed off by the regulator, emphasized that "ultimately any service operating in Australia is responsible for understanding its legal obligations and ensuring it meets them"

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. Lisa Given, director of RMIT University's Centre for Human-AI Information Environments, said the Reuters findings were unsurprising because "most of these tools are being designed without a view to potential harms and the need for those kinds of safety controls" . The enforcement action against blocking AI platforms through app stores and search engines could set a global precedent for how governments protect minors from harmful content in the AI era.

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