20 Aug 2025
The rapid growth of artificial intelligence (AI) has triggered a major debate in Australia — especially over whether copyright-protected material can be used without permission to train AI systems.
Creative and media industries are among the loudest voices calling for stronger safeguards. Right now, Australia’s copyright laws don’t have a “fair dealing” exception for AI training like the one in the United States — meaning unauthorised use could still infringe copyright here.
Government Guardrails and Policy Proposals
In 2024, the Australian Government introduced voluntary AI guardrails — covering things like accountability, risk management, transparency, and human oversight — but they aren’t yet legally binding. A proposal to make them mandatory for high-risk AI systems was released in September 2024.
The Productivity Commission’s August 2025 interim report (“Harnessing Data and Digital Technology”) warns that rushing into mandatory guardrails could limit AI adoption and stifle innovation. It recommends pausing until a full review of existing regulations is done and encourages using technology-neutral rules where possible.
Copyright Reform on the Table
The Commission has floated possible changes to the Copyright Act 1968 (Cth) to keep pace with AI:
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Adding a fair dealing exception for text and data mining (potentially covering AI training).
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Making it easier to license copyright material, possibly through collective licensing bodies.
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Keeping laws as they are, so copyright owners can still take legal action for infringement.
It’s asking for public submissions on whether reform is needed and how to balance innovation with creators’ rights.
Privacy and AI
The Australian Privacy Act 1988 (Cth) already applies to AI systems that use personal data. The Office of the Australian Information Commissioner (OAIC) has issued guidelines on privacy in AI training. The Commission says privacy rules should focus more on outcomes, not just box-ticking processes.
The Road Ahead
The challenge is clear: Australia needs to remain competitive in AI while also protecting creators, consumers, and society from harm. Any changes will need to be carefully balanced to avoid slowing down innovation or leaving rights-holders unprotected.
IP Solved Insight
If you create, own, or use content, code, designs, or datasets, AI’s legal grey areas could impact your IP rights. Whether you’re a business innovating with AI or protecting your creative assets, getting expert IP advice now is critical.
Contact IP Solved today to discuss how to safeguard your intellectual property in the age of AI.
