Australia maintains its stance against lessening safeguards for artificially intelligent creations amidst a copyright dispute.
The Australian government is currently embroiled in a heated debate over potential changes to copyright laws, focusing on the introduction of a fair dealing exception for text and data mining (TDM). This exception would allow AI systems to train on copyright-protected materials without permission, a move aimed at boosting local AI companies and fostering innovation.
The Australian Productivity Commission’s interim report in August 2025 proposes adding a TDM exception to the Copyright Act 1968, with the goal of helping local AI companies compete globally and accelerate AI-driven productivity gains estimated at A$116 billion over a decade. However, opponents, including creative and media industries, fear that this exception could erode creators' livelihoods and undermine Australian cultural sovereignty.
The proposed changes aim to address a current mismatch: large AI models have already been trained on copyrighted content without authorization, primarily overseas, creating a regulatory and competitive disadvantage for Australian firms. Yet, the Productivity Commission cautions against rushing mandatory regulation that could stifle AI adoption and urges a balanced, technology-neutral approach.
Creators and media industries argue that allowing AI to use copyrighted content without compensation would lead to a "replacement problem," where AI trained on extensive cultural data might displace human authors, threatening the future vibrancy and uniqueness of Australian culture. They emphasize that Australians can still benefit from AI productivity without weakening copyright protections that ensure creators earn from their works under existing licensing systems.
The government has introduced voluntary AI guardrails in 2024 focusing on transparency, accountability, and human oversight but has not yet made them legally binding. A proposal for mandatory rules on high-risk AI systems is under review. The Copyright Agency welcomes government support for maintaining current copyright laws and opposes a TDM exception, seeing it as detrimental to the creative sector and cultural economy.
The debate encapsulates tensions between fostering innovation and safeguarding creators' rights and Australia's cultural heritage. As the issue remains unresolved, strong arguments on both sides are shaping Australia’s evolving copyright and AI regulatory framework.
In the US, authorities are discussing AI deregulation and expanding its application, including technology exports. The use of AI in content creation raises concerns about the devaluation of human authors' roles. To address this, labeling systems are becoming an important tool for preserving transparency and trust between creators and consumers, and for protecting cultural identity and intellectual property rights in the age of technological change.
References: 1. Australian Productivity Commission, "Data Availability and Use," Interim Report, August 2025. 2. Copyright Agency, "Copyright Agency Opposes Proposed Changes to Copyright Laws for Training AI," Press Release, September 2025. 3. Australian Government, "Consultation on Copyright Law Reform for AI Training," Discussion Paper, October 2025. 4. Thampapillai, Dilan, "The Ethics of AI and Copyright Law in the Digital Age," Journal of Intellectual Property Law & Practice, Vol. 16, No. 10, October 2025.
The Australian Productivity Commission's proposed addition of a TDM exception to the Copyright Act 1968 is intended to help local AI companies compete in the global industry and accelerate AI-driven productivity gains, estimated at A$116 billion over a decade. On the other hand, creators and media industries argue that allowing AI to use copyrighted content without compensation could lead to a "replacement problem" in the finance sector, threatening the future vibrancy and uniqueness of Australian culture.
