Credit: Andrea De Santis via Unsplash
The federal government is preparing to overhaul data and technology policy, including the use of AI, as part of a push to boost productivity in Australia.
A Productivity Commission (PC) inquiry was established in December 2024 to come up with reforms. An interim report, including draft recommendations, is expected to be released next month. Final findings will be handed to the government in December.
After Labor won the last election, treasurer Jim Chalmers stated that tackling “flatlining productivity” would be a priority.
After receiving more than 500 submissions from everyday Australians – as well as from tech platforms such as Amazon, Google and Meta – the commission is consulting on reforms to harness data and digital technology.
Amazon welcomed the commission’s review of the regulatory framework, aiming to streamline processes, improve efficiency, and reduce business burdens to drive innovation and productivity growth.
“Any efforts to devise a comprehensive, one-size-fits-all regulatory framework are unlikely to be effective and fail to capitalise on robust legal frameworks already in place,” the company said in its submission.
“We’re not developing technology for technology’s sake – every move we make in this vein is to improve the experience for our customers and our partners, with the conviction that success and scale bring broad responsibility."
“It is vital that Australian AI standards are interoperable to the greatest extent possible... so that the many players across the AI supply chain don’t end up with a patchwork of local, conflicting regulations.”
Google, in its submission, said AI has the power to fundamentally reshape the global economy on a scale comparable to the steam engine, electricity, and the internet.
“At a time when the rest of the world is racing to successfully deploy AI, overly interventionalist or poorly designed regulation can significantly undermine AI's economic potential by creating friction that slows investment, adoption, and innovation,” the company said.
“The economic cost of poorly designed AI regulation is therefore not confined to direct compliance expenditures. More significantly, it encompasses the opportunity cost of unrealised productivity gains, forgone innovation, and diminished international competitiveness.”
“The advantage Australia has gained from its cautious approach can be a strategic asset... This capacity to learn by observation can allow Australia to significantly de-risk its own AI strategy, paving the way for a more efficient, effective, interoperable, and innovation-conducive framework from the outset.”
Meta said it is committed to privacy, data protection and the responsible development of AI, and is excited about the economic and social potential of technology.
“Open source AI models – which are available to anyone at a low cost, or even for free – are driving economic growth, innovation and competition by making tech solutions more accessible,” the company said.
“To realise these benefits, we encourage the Productivity Commission to propose recommendations that ensure that Australia’s regulatory settings are enabling of innovation and not conflicting, in terms of the obligations they place on industry.”
“Meta has invested over US$8 billion since 2019 in building a robust privacy program, embedding privacy protections into products, maintaining accountability through internal audits and global collaborations, and empowering users to control their privacy through tools and transparency.”
Commission chair Danielle Wood said the commission will combine the public input with its own research and identify three to five policy reforms.
“Everything from our economic security to our living standards and the health of our families and the environment depends on getting these policy areas right,” she said.
“We all have a stake in Australia’s future – the PC is excited to hear first-hand from everyday people how government can shape that future for the better.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.