Australian Founder Challenges Global Approach to AI Regulation: ‘Startups Resisting AI Compliance Are Doomed to Fall Behind’

In a compelling address before the Australian Senate on AI adoption, Rachael Greaves, CEO and Co-founder of Castlepoint Systems, delivered a strong message about the critical need for AI regulation, cautioning that startups and organisations overlooking regulatory frameworks risk falling out of step with global expectations.

Greaves, who has extensive experience across audit, security, privacy engineering, and records management, used her platform as a witness to the Senate Select Committee on Adopting AI to highlight the ethical stakes of unregulated AI practices. She emphasised that AI’s transformative power comes with a responsibility to implement explainable and ethical systems. “The reality is that opaque, unchecked AI is a risk to all stakeholders. Algorithms need to be explainable from the outset because the material harm from ungoverned AI is real and avoidable,” she said. Her remarks pointed to a gap in global practices, where compliance often lags behind innovation and is treated as an afterthought.

She noted that startups who want to succeed need to be ‘born global’. They need to aspire to service international markets, including the EU, which has already introduced ethical AI legislation. If building to that highest standard, the introduction of regional regulation in their home market should not affect how they design their solutions. Far from resisting introduction of regulations, they should embrace them as a framework from which to build, and as a benchmark from which to establish stakeholder trust.  

A Call for Ethical AI Adoption Worldwide

The EU has forged ahead with legislation for the ethical use of AI, while other Western nations have vacillated. The US took a decisive direction towards wide-ranging regulation recently with Biden’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence in October last year, but it remains unclear whether Trump (perhaps under the prompting of Elon Musk) will wind this back when he retakes office in January. The UK initially affirmed a soft-touch approach under Sunak in the response to the AI Whitepaper in February 2024, but the King’s Speech later in July indicated an appetite for stronger regulation. The direction still remains unclear in both geographies, as in Australia.  

Greaves shared insights into Castlepoint’s unique explainable AI solution, which leverages transparent algorithms to automate compliance across massive data sets. By focusing on ethical AI from its inception ten years ago, Castlepoint stands apart from other tech companies that only started considering ethical AI when the EU AI Act came into focus in 2024. She issued a call to action for startups and governments worldwide to prioritise transparency, or face being outpaced in an increasingly data-driven economy.

“AI isn’t a free-for-all,” Greaves stated. “If we want communities to be safer and smarter, we need to prioritise responsible AI adoption, balancing innovation with robust data governance.”

A Global Lens on AI: Where Some Nations Risk Being Left Behind

While many regions race to adopt AI solutions, Greaves highlighted that regulatory standards vary widely. She urged international collaboration and warned that countries lagging in regulation—like the UK in certain areas—could be at a disadvantage. “This isn’t just about AI—it’s about global responsibility. Nations that hesitate to put guidelines in place are risking their standing in an interconnected world. At Castlepoint, we’ve seen firsthand how ethical AI can empower rather than endanger.”

Looking Forward

Greaves ended with a call for cooperative international efforts to standardise AI practices, noting Castlepoint’s commitment to work closely with governments on advancing AI responsibly. "The world is watching, and it’s crucial we take a proactive stance."

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