Key Takeaways
- The Productivity Commission has abandoned a proposal to allow tech companies to mine copyrighted material to train artificial intelligence models
- The commission has recommended waiting three years before deciding whether to establish an independent review of Australian copyright settings and the impact of AI technology
- The Australian Recording Industry Association has welcomed the commission’s final report, stating that the copyright system is robust and fit for purpose
- The commission has cited uncertainty in three key areas, including how AI-related copyright exemptions are working overseas, the effect of AI training on incentives to create new content, and the potential for voluntary licensing for open web material
- The government has welcomed the recommendations, but has flagged that it may not be able to implement all of them
Introduction to the Productivity Commission’s Report
The Productivity Commission has released its final report on harnessing the digital economy, which has been welcomed by the Australian Recording Industry Association. The report has abandoned a proposal to allow tech companies to mine copyrighted material to train artificial intelligence models, a move that was met with fierce backlash from the creative industries. Instead, the commission has recommended waiting three years before deciding whether to establish an independent review of Australian copyright settings and the impact of AI technology. This decision has been seen as a victory for the creative industries, which argued that the proposal would have legitimized digital piracy and undermined the value of Australian culture.
The Creative Industries’ Response
The creative industries, including music industry bodies, were strongly opposed to the commission’s initial proposal. They argued that it would have allowed tech companies to exploit copyrighted material without permission, and would have undermined the value of Australian culture. The Australian Recording Industry Association’s chief executive officer, Annabelle Herd, stated that the commission’s final report reinforces the industry’s argument that the copyright system is robust and fit for purpose. She also noted that the report clearly affirms that Australia does not need new copyright carve-outs or regulatory shortcuts to enable artificial intelligence. The industry’s strong response to the proposal was likely a key factor in the commission’s decision to abandon it.
The Commission’s Reasoning
The commission cited uncertainty in three key areas as the reason for its wait-and-see approach. These areas include how AI-related copyright exemptions are working overseas, the effect of AI training on incentives to create new Australian content, and the potential for voluntary licensing for open web material. The commission argued that it is difficult to design an effective policy response without a better understanding of these issues. The commission’s chair, Danielle Wood, noted that national productivity has stalled since 2016, and that lifting productivity growth back to its historic average would mean full-time workers would be at least $14,000 a year better off by 2035. The commission’s report is one of five inquiries commissioned by the treasurer, Jim Chalmers, which aim to deliver a practical plan for economic reform.
The Government’s Response
The government has welcomed the commission’s recommendations, but has flagged that it may not be able to implement all of them. The treasurer, Jim Chalmers, noted that the government will take the time to consider the recommendations properly in the lead up to the next budget and beyond. The attorney general, Michelle Rowland, had previously killed the proposal to grant a "fair dealing" exemption to copyright rules, stating that the government would not grant any such exemption to data mining rules. The government’s response suggests that it is taking a cautious approach to the issue, and is willing to consider the commission’s recommendations in detail before making any decisions.
The Broader Context
The commission’s report is part of a broader effort to boost productivity and drive economic growth. The report includes 47 recommendations that span delivering quality care more efficiently, building a skilled and adaptable workforce, creating a more dynamic economy, and achieving net zero at least cost. The commission has also tweaked its controversial proposal for corporate tax reform, and included alternative approaches to lower company tax that cost the budget billions in lost revenue, but which boosted investment and economic growth. The report’s findings and recommendations will likely have a significant impact on the government’s economic policy, and will be closely watched by industry stakeholders and the broader community.
Conclusion
In conclusion, the Productivity Commission’s final report on harnessing the digital economy has abandoned a proposal to allow tech companies to mine copyrighted material to train artificial intelligence models. The report’s findings and recommendations have been welcomed by the creative industries, which argued that the proposal would have undermined the value of Australian culture. The government has welcomed the report, but has flagged that it may not be able to implement all of the recommendations. The report is part of a broader effort to boost productivity and drive economic growth, and its findings and recommendations will likely have a significant impact on the government’s economic policy.
