South Australia will establish the state's first royal commission into artificial intelligence to study its impact on work, creativity, education, public services, and governance, with findings guiding proactive regulation.

The inquiry, planned to run from late 2026 to mid-2027 with a budget near $3 million, will be conducted by a three-member commission drawing on international expertise.

Premier Malinauskas announced the commission after his US visit, during which he engaged with AI companies and officials, signed a memorandum of understanding with OpenAI, and met Tim Cook.

Analysts credit Malinauskas with building a durable political brand through a majority government that cushions intra-party clashes and blends highbrow appeal with populist traits, while critics view him as arrogant.

Stakeholder views diverge: industry wants rapid permits with renewable offsets, civil society calls for strict oversight, academics seek transparent risk assessments and inclusive governance, and planners seek data-center guidance to protect power grids.

Experts warn against treating AI outputs as equivalent to expert advice, stressing safeguards and clear distinctions between AI capabilities and professional expertise, especially in high-stakes contexts.

Preparation advice urges stakeholders to understand systems and governance now, and manage emerging risks ahead of public questions or involvement.

Business voices emphasize clear regulatory settings to guide where global firms invest and conduct R&D, balancing innovation with safeguards.

National cybersecurity perspectives stress AI’s dual potential to strengthen or undermine governance, underscoring the need for timely regulatory responses.

Critics point to controversies surrounding the Premier’s record on abortion access, algal bloom management, hospital ramping promises, and contentious redevelopment plans that sparked protests and environmental concerns.

Opposition critics argue a prior parliamentary AI inquiry already produced recommendations and stress alignment of state policy with federal AI efforts.

Experts warn of existential and societal risks if AI deployment proceeds without proper regulation, including heightened malicious activity and vulnerabilities.