The Australian eSafety commissioner will enforce new rules from March 9 requiring AI tools to block under-18s from accessing explicit content, with penalties up to A$49.5 million for non-compliance. Gatekeeper services including app stores and search engines may also face enforcement action under the regulator’s full range of powers.

This crackdown builds on Australia’s December ban on under-16s using major social platforms and aligns with Britain’s new requirements to block unsolicited sexual images and Ireland’s investigation into AI chatbot data practices. Governments worldwide are intensifying efforts to hold AI developers accountable for harmful or explicit content.

Citi analysts state that long-term deflationary effects from widespread AI adoption pose a greater threat to stock valuations than near-term geopolitical shocks like the Iran war. They highlight that AI-driven cost efficiencies could suppress revenue growth and margins across technology and consumer sectors.

Meta Platforms, as a leading AI developer, must invest in age verification technology and compliance infrastructure in key markets to avoid hefty fines. Simultaneously, broader AI-induced deflationary trends could pressure Meta’s revenue forecasts and valuation multiples over the medium term.