OpenAI Agent Hacks Australian Government Portal

The Australian Prime Minister, Anthony Albanese, has disclosed that an AI agent, developed by OpenAI, hacked a government portal. This seems to be one of the world’s first examples of an AI-led attack on a government website. It comes as international leaders and AI firms call for faster regulation, with growing concern that the technology is developing more quickly than current safeguards can manage. 

Speaking today, whilst attending the UN General Assembly in New York, Mr Albanese said that the agent infiltrated part of the Australian government’s healthcare scheme Medicare. The hack took place in June, though OpenAI became aware of it in August and informed the Australian government in September. The company said, “our models took actions we did not intend” and that it found no record of patient data being accessed. The Australian government has launched an urgent review. 

Notably, an AI-enabled hack of this kind was anticipated by Caroline Wong, an AI expert, during an appearance on the Guardians of Data podcast in June. Listen to the clip here.  

This case highlights the importance of ensuring that all AI has effective governance controls in place and is properly tested before being deployed. This is particularly important in the case of AI agents. For the past few years, legal, compliance and data protection professionals have largely focused on the risks associated with deploying large language models (LLMs) such as ChatGPT and Claude.  

The key difference between LLMs and agentic AI is autonomy. Traditional AI tools usually operate within a defined task and rely on people to decide what happens next. By contrast, agentic AI can adjust its actions as information changes, tools become available or the task develops. This increases the risks substantially. 

An agentic system may be linked to internal systems, third-party services, customer information, APIs and external tools. Each connection creates potential cyber security exposure. If an agent has excessive permissions or is badly configured, an attacker may be able to influence its actions, redirect it towards an unintended outcome or gain access to sensitive commercial or personal information. 

For a detailed discussion on the risks of AI Agents see our blog post. You can also hear more on building trustworthy and responsible AI systems with AI expert Tahir Latif in this podcast. 

We are repeating our fully booked AI Agents webinar in November. It will equip you with the knowledge needed to understand, assess, and govern AI agents confidently and responsibly.

What’s the Problem with Deepseek? 

DeepSeek, the Chinese equivalent of ChatGPT, is making big waves in the AI world. Since its launch, it has quickly become the top-rated free app on Apple’s App Store, challenging the notion that the US leads the world in AI development. 

DeepSeek’s Chinese developers released the latest version of its app on 20th January (the day of US President Trump’s inauguration) rapidly gaining attention from AI experts and the tech industry. Powered by the open-source DeepSeek-V3 model, it was reportedly developed for less than $6 million, a fraction of the billions spent by its US rivals. Recently, OpenAI and other companies pledged to invest $500 billion in US AI infrastructure. President Trump announced this as “the largest AI infrastructure project in history” to maintain technological leadership in the US. However, DeepSeek’s emergence has impacted US tech stocks. On Monday the Nasdaq index dropped 3%, with chip-making giant Nvidia losing almost $600 billion in market value—the biggest one-day loss in US stock market history.  

Privacy Issues 

While the Chinese media and open-source AI proponents may be celebrating, DeepSeek’s rise necessitates scrutiny regarding its privacy and security risks. Some of these are:  

  • Data Collected: DeepSeek gathers sensitive personal data through natural conversations. 
  • Potential for Influence and Manipulation: As an AI chatbot, DeepSeek can shape opinions and conduct influence campaigns. 
  • Data Storage and Accessibility: Data stored on servers in China is fully accessible to the Chinese government. 
  • Level of User Engagement: Users may unknowingly reveal personal or confidential information through interactive conversations. 

Many of these issues are the same as TikTok which was temporarily banned in the US last week. 

Organisations need to closely monitor the AI models employees use; the US Navy recently advised its members to avoid using DeepSeek due to potential security and ethical concerns. It is also important to establish clear policies, procedures, and guidance, especially regarding GDPR compliance.  

Yesterday the Irish Data Protection Commission confirmed to TechCrunch that it has sent a note to DeepSeek requesting details concerning how the data of citizens in Ireland is processed by the company. The Italian data protection regulator has sent a similar note to the company and the DeepSeek mobile app no longer appears in both the Google and Apple app stores in Italy. 

Meanwhile (and with a straight face) OpenAI has accused DeepSeek of distilling knowledge from its models, breaching terms of use, and infringing on intellectual property. OpenAI, is itself facing numerous AI copyright lawsuits! 

2025 has just started and the AI news feed is already buzzing.  

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