AI data Mining Proposal Shelved in Australia After Creative Industry Backlash
australia’s Productivity Commission has retreated from a contentious proposal that would have allowed tech companies to utilize copyrighted material for training artificial intelligence models, following notable opposition from the nation’s creative sector. Instead, the government’s leading economic advisory body has recommended a three-year pause before revisiting the issue and considering a formal review of Australian copyright law in the age of disruptive technology.
the commission’s final report on harnessing the digital economy was met with approval from organizations representing artists and rights holders. Annabelle Herd, chief executive officer of the Australian Recording Industry Association (ARIA), stated, “These findings reinforce what Australian creators and rights holders have consistently argued: our copyright system is robust, fit for purpose, and should be allowed to do its job in protecting the value of Australian culture.”
The initial proposal, outlined in an interim report, suggested a “fair dealing” exemption to existing copyright rules. This would have permitted AI companies to “mine” data and text to develop large language models. Proponents argued that leveraging local content would foster the growth of Australia-specific AI, boosting economic productivity. Scott Farquhar, co-founder of Atlassian and chair of the Tech Council of Australia, previously asserted that revising current restrictions could “unlock billions of dollars of foreign investment into australia.”
However, the idea sparked immediate and forceful condemnation from creative industries, with concerns raised that it would effectively “legitimise digital piracy under the guise of productivity.” The attorney general, Michelle Rowland, effectively halted the proposal in October, confirming the government would not grant an exemption to data mining regulations.
The commission now justifies its delayed approach by citing uncertainties in three key areas. These include the practical effects of AI-related copyright exemptions in other countries,the potential impact of AI training on incentives for Australian content creation,and the likelihood of voluntary licensing agreements emerging without government intervention.
This report is one of five inquiries commissioned by Treasurer Jim Chalmers aimed at formulating a comprehensive plan for economic reform. Danielle Wood, chair of the Productivity Commission, highlighted that national productivity has stagnated since 2016. According to the commission, restoring productivity growth to past levels could increase the annual income of full-time workers by at least $14,000 by 2035. “We need to get productivity moving to ensure future generations can live better and more prosperous lives than those that came before them,” Wood emphasized.
Beyond the digital economy, the “five pillars” reports encompass 47 recommendations addressing areas such as efficient care delivery, workforce development, economic dynamism, and achieving net zero emissions. The commission also refined its proposals for corporate tax reform, presenting choice approaches that, while perhaps costing the budget billions, are projected to stimulate investment and economic growth.
Treasurer Chalmers acknowledged the recommendations, stating the government will “take the time to consider them properly in the lead up to the next budget and beyond,” but also cautioned that not all proposals may be adopted.
