Opposition spokesman for defence James Paterson said this morning Australia should be treating the breach of a Medicare system by a rogue AI agent as “a free warning” as he cautioned against alarmist rhetoric about the incident.

“This time, it wasn’t serious in terms of the data that was taken or the method of the intrusion, but next time it could be much more serious,” he told Nine’s Today show.

Liberal senator James Paterson.Dominic Lorrimer

He said Australia required better artificial intelligence to defend itself from cyber threats.

“We need to be doubling down and investing, particularly in our government networks, to defend them better. We’re going to need to use AI to do that … and we’re going to need to make sure that we put in place appropriate guardrails and oversight of these AI companies.”

Paterson accused the prime minister of stoking panic about the breach, which he said “was a very limited incident”.

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