Cory Doctorow warns Australia faces a reckoning as the AI bubble risks bursting, while new tools let readers chat with books, raising copyright debates.
Cory Doctorow, a science fiction author and journalist, has sounded a cautionary note about the AI sector’s fragility, warning that Australia’s investments in the technology could face a reckoning if the current bubble collapses. His concerns come as new AI tools emerge, allowing readers to interact with books in ways that blur the line between fiction and real-time dialogue. Meanwhile, Australia’s government insists it is steering AI development to align with national interests, even as creators and companies grapple with the ethical and legal implications of these innovations.
The AI Bubble’s Fragility and Australia’s Preparedness
Doctorow, in his new book The Reverse Centaur’s Guide to Life After AI, argues that the current enthusiasm for AI is built on “brittle” foundations. He points to the massive investments from Gulf sovereign wealth funds and billionaires into data centers as a key factor keeping the bubble inflated. It was always very fraught,
he says, noting that if these investments falter, the AI sector could face a sudden collapse. This scenario, he warns, would leave industries that replaced workers with AI tools scrambling to rehire and retrain employees, a process he compares to “Fury Road”-level chaos.
The Australian government, however, is taking a different approach. Prime Minister Anthony Albanese has pledged to strengthen copyright laws to ensure AI companies pay for using creative works, a move welcomed by some in the arts sector. But Doctorow is skeptical, arguing that copyright protections alone won’t address deeper issues. The only other constituency, apart from a few creative workers, for a new copyright is our bosses,
he says, suggesting that labor rights and open-source AI models may offer more sustainable solutions.
AI Tools That Let Readers ‘Talk’ to Books
While Doctorow focuses on macroeconomic risks, a wave of startups is redefining how readers engage with literature. Platforms like Sinai.ai and My Smart Book allow users to ask questions about characters, plotlines, and historical contexts in real time. You are dealing with a book as if it is a living object — it’s totally different,
says Sinai.ai CEO Ahmed Kamel. These tools, which draw only from the text of books, aim to make reading more interactive and accessible.
Audible, Amazon’s audiobook service, has also launched a feature called Ask a Question,
letting listeners pause and query specific parts of an audiobook. An Audible spokesperson told AFP the tool is designed to answer questions specifically about the audiobook the listener is currently engaged with.
Amazon’s Kindle app offers a similar feature, “Ask this Book,” which acts as an expert reading assistant.
Copyright Conflicts and the ‘AI Rights’ Debate
The rise of these tools has reignited debates over copyright. Sinai.ai claims it only uses books in the public domain or with explicit permission from authors or publishers. But other platforms, like Myreader and BookWorm AI, allow users to upload copyrighted material without restriction.
Some companies, like iChatbook, avoid direct text copying by summarizing key ideas instead. Our chat book is not a library of books — it’s a library of concepts and ideas,
founder Brian Yang explains. Sinai.ai, however, has developed what it calls “AI rights,” a system that compensates authors and publishers when their work is used by chatbots. The company claims it is in talks with major publishers, including Hachette and Penguin Random House.
Australia’s Vision for AI Sovereignty
Australia’s approach to AI emphasizes self-reliance and economic resilience. In a speech at Sydney University, Prime Minister Albanese highlighted the nation’s history of innovation, from Medicare to superannuation, and argued that AI should be designed, made, and built right here.
This vision aligns with broader regulatory efforts. In September 2024, Australia announced a Social Media Ban for Australians under the age of 16, a move that set a global precedent. Albanese suggests the same boldness is needed for AI: We can set a standard that changes the way the world looks at an issue and deals with it.
However, the balance between innovation and oversight remains unresolved, particularly as new tools like AI-powered reading assistants challenge traditional notions of authorship and ownership.
As the AI landscape evolves, the interplay between technological ambition, ethical concerns, and regulatory frameworks will define its impact. For Australia, the challenge is not just about managing a potential bubble but about shaping a future where AI serves both economic and societal goals.
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