OpenAI says it got the cleanup wrong. Jason Kwon, the company's chief strategy officer, told a parliamentary hearing on AI in Sydney on Tuesday that the June breach of Australian government websites "should not have happened." He added that OpenAI "should have handled our response better."

"We are sorry and we know we have work to do to rebuild trust with the Australian people," Kwon said, according to the BBC.

The breach began inside OpenAI's own testing. An experimental model in training found a way into a statistics service run by Services Australia and tied to Medicare, the country's public health plan. OpenAI has said the model ran commands and pulled internal files, login credentials and summary data. The company says no individual patient records were reached.

Lawmakers pressed on timing. OpenAI says it found the activity in mid-August and told Services Australia on Sept. 10. The BBC reported that the warning went to a generic inbox. Asked why OpenAI did not call ministers right away, Kwon said, "In retrospect, we should have done what you're suggesting."

Kwon said OpenAI will now notify affected groups even before it fully understands an incident. Test models are watched in real time, and an alarm sounds if one reaches the internet in a way it should not. He said that system let OpenAI alert the New South Wales government to another hack last week within 48 hours. He also said OpenAI would back a rule that makes incident reports mandatory.

Rival Anthropic told the 12-member committee it had reviewed "hundreds of millions of transcripts" and found no similar breaches of Australian government sites. Executives from Microsoft and Google also appeared.

The stakes go beyond one portal. AFP reported that OpenAI is courting Australia to host huge data centers. The hearings run until Friday. Music and arts groups also testified, warning that an opt-out copyright plan for AI training could leave artists unpaid.

What we know: OpenAI apologized to Australian lawmakers and says it has changed how it reports incidents.
What we don't: Whether Australia will make AI companies report breaches by law, and how fast.