Magentus first to sign Australia’s new AI governance code for health software

Artificial intelligence is moving quickly across Australian healthcare. Governance, however, has struggled to keep pace.

Magentus, a provider of clinical systems and practice management software to medical professionals nationwide, has become the first company to sign Australia’s inaugural Voluntary Code of Conduct for the use of artificial intelligence in health software.

Launched in December 2025 by the Medical Software Industry Association (MSIA) and the Medical Technology Association of Australia (MTAA), the Code establishes the country’s first principles-based governance framework specifically for AI deployed in healthcare software settings.

READ MORE: Inside MSIA’s voluntary AI code – and what it signals for healthcare decision-makers

A baseline for responsible AI in health software

The Code outlines ten governance domains, including accountability, risk management, data governance, transparency, testing and monitoring, and individuals’ rights to challenge AI-driven decisions.

Signatories commit to:

• Clear organisational ownership of AI systems

• Clinical validation prior to deployment

• Ongoing post-deployment monitoring

• Compliance with Australian privacy law

• Transparency for end users about how AI systems function

The framework aligns with the Australian Government’s National AI Plan, announced on 2 December 2025, and is supported by a companion Accreditation Standard. A formal review of the Code is scheduled for mid-2026.

Brenden Conolly, Chief Technology Officer at Magentus, said signing the Code was a natural step for the organisation.

“Patients, clinicians, and governments need to know that AI is being used carefully and transparently. This is about committing to exactly that, and earning their trust.”

AI as an administrative tool, not a clinical decision-maker

Magentus has confirmed that AI functionality within its platforms will operate under defined guardrails. Under both the Code and the company’s internal governance framework, clinicians remain in control at all times and AI will not make clinical decisions.

Instead, AI will support administrative and workflow processes across the clinical journey.

Across Magentus’ portfolio, which supports pathology networks, oncology teams coordinating chemotherapy across multiple hospitals, and radiology departments managing growing diagnostic workloads, the company says well-governed AI can help reduce duplicate testing, accelerate information flow and ease manual administrative burden.

“AI isn’t about replacing expertise, it’s about removing the noise around it,” Conolly said. “A well-designed system gives clinicians back time for direct patient care.”

Industry-led governance fills a regulatory gap

The Code applies to health software that falls outside the Therapeutic Goods Administration’s regulatory remit, including practice management platforms, health informatics tools and clinical workflow systems.

Until now, there has been no formal baseline governance framework for this category.

The Medical Software Industry Association is hosting stakeholder webinars to build engagement and encourage broader industry participation, with support signalled from the Australian Government for industry-led governance models.

Michele Blanshard, Magentus Managing Director of Practice Management and Oncology and Vice President of the Medical Software Industry Association, said the opportunities AI provides healthcare must be matched with strong oversight.

“We see responsible AI use as increasingly integral to providing safe, modern healthcare,” Blanshard said. “We want to set the benchmark from the very beginning.”