7 August 2025

Productivity Commission says AI should be free to data mine copyrighted works

| By Chris Johnson
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Artificial intelligence would be free to harvest Australian copyrighted content under proposals put forward by the Productivity Commission. Photo: File.

Treasurer Jim Chalmers thinks artificial intelligence will be a positive game-changer for the Australian economy, and the Productivity Commission agrees.

The Commission has published another of its reports ahead of this month’s productivity roundtable and says AI will likely add more than $116 billion to Australian economic activity over the next decade.

It has cautioned against a heavy-handed approach to regulating the use of AI and has even floated a text and data mining exception from the Copyright Act.

That would open the door for AI trainers and platforms to legally exploit “fair dealing” on copyrighted Australian work.

Unions and the Coalition have both raised serious concerns about the PC’s proposals.

But Commissioner Stephen King says Australia can unlock the benefits of data and digital technology with a growth-focused approach to regulating AI.

New pathways to give people access to the data about themselves, and a shift to digital financial reporting, were also potential benefits.

“The average Australian today enjoys living standards three times higher than the average Australian in the 1960s, due in part to the productivity growth that new technology has delivered,” he said.

“With the right policy approach, AI technology and innovations in data could help Australia get back on the path to growth.”

READ ALSO Policy ideas everywhere as productivity roundtable draws closer

The Commission’s interim report recommends an approach to regulation that limits the risks that AI presents without stifling its growth potential.

It says the Federal Government should check for gaps in current regulation exposed by AI and, where possible, amend that same regulation to fill them.

The Commissioner said AI-specific regulation should only be considered as a last resort.

“Like any new technology, AI comes with risks. But we can address many of these risks by refining and amending the rules and frameworks we already have in place,” Dr King said.

“Adding economy-wide regulations that specifically target AI could see Australia fall behind the curve, limiting a potentially enormous growth opportunity.”

Dr Chalmers said he was confident the government could navigate a sensible “middle path approach” to the use of AI, but he believes it could lift living standards in Australia.

“I’m optimistic that AI can be a force for good, but I’m also realistic about the risks,” the Treasurer said.

“It is not beyond us, in my view, to maximise the opportunities of AI while we manage the risks as best we can.

“The only way to make our people and workers and industries beneficiaries is if we treat AI as an enabler, not an enemy, of what we want to see in our economy … The onus is on us as governments to show people that AI or other changes in technology can be a force for good.

“That means listening to workers. It means empowering them with the skills that they need to get ahead as technological change gathers pace.

“We’re very attentive to that.”

The union movement, however, thinks otherwise.

READ ALSO Changes to negative gearing must be on productivity roundtable agenda, says ACTU

The Australian Council of Trade Unions described the PC’s report as “hopelessly behind the times” that offers nothing for working Australians.

It said the Productivity Commission seems “completely ignorant of the world-leading academic research” and best-practice examples that demonstrate the most effective AI introduction is done through consultation, co-design and collaboration with workers.

ACTU assistant secretary Joseph Mitchell said the Commission had swallowed the arguments of large multinational tech companies “hook, line and sinker” in its rejection of the need for appropriate economy-wide regulation to manage the risk of social harm posed by the misuse of AI.

“The union movement absolutely opposes any move towards the reckless and irresponsible diminishing of protections for the output of Australian creative workers, journalists, academics and other similar workers,” he said.

“We are deeply concerned about the Productivity Commission’s extensive canvassing of the possibility of a text and data mining exemption, which could only be for the benefit of large multinational tech companies.

“Let’s be clear about what relaxing copyright for data mining really means in practice – it means legitimising the theft of the work of Australian creative workers, journalists and academics.

“It means undermining some of our most treasured industries, ones that define our sense of who we are as a nation.

“Further, it means denigrating and stealing Indigenous cultural and intellectual property all to benefit overseas tech billionaires making new products.”

Opposition Leader Sussan Ley said the government must not take a casual approach to AI.

She said guardrails must be put in place, but she didn’t say what those measures should be.

“I’m not hearing from this government about guardrails to protect Australian content,” Ms Ley said.

“It is not appropriate for big tech to steal the work of Australian artists, musicians, creators, news media, journalists, and use it for their own ends without paying for it.

“AI is important. We should embrace technology with respect to AI, but we have to get the balance right so that we can power the economy.

“And we have to protect people. We have to protect content creators, and I don’t see that.

“There’s very wishy-washy language coming from this government this morning about protecting the real intellectual property and the creative work of so many incredible Australians.”

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