Social media algorithms are pushing people towards "extremes" as the nation implements a plan to crack down on anti-Semitism.
Australia's Special Envoy to Combat Anti-Semitism Jillian Segal handed down her report to provide a pathway to stamping out discrimination against Jewish people.
It recommended intervention to "confront the spread of anti-Semitism by ensuring regulatory settings for the online world keep up with those in the real world".
"Online platforms are major vectors of hate ... however, addressing anti-Semitism online is a complex and multifaceted challenge, given the global nature of much of the content," the report reads.
It calls for algorithms to be made transparent in a bid to prevent the "amplification of online hate".
Asked if rising racial vilification and intolerance could be attributed to polarising views, Prime Minister Anthony Albanese pointed to social media use.
"There is an impact of social media, where algorithms work to reinforce people's views," he told reporters.
Mr Albanese said people's views were being reinforced online and pushed to extremes.
"Australians want a country that is in the centre, you know, that has different views that we debate respectfully and have dialogue respectfully," he said.
The report found efforts should be made to reduce the influence of bots, particularly those overseas peddling discord behind the veil of anonymity.
Law enforcement agencies should be supported to prioritise the identification and prosecution of those who commit offences online with co-operation from the host platforms, it says.
Ms Segal said societies needed to understand how to deal with the social media platforms and convey to them their responsibilities to prevent AI from spreading anti-Semitism.
"It's an ongoing piece of work, but it is work that has to be done by each country, but also countries coming together," she said.
Elon Musk's chatbot, Grok, recently began praising Adolf Hitler on social media platform X, and started replying to posts with anti-Semitic comments.
Grok's hateful tirade appeared following an update at the weekend, and uses data from X.
