Harnessing data and digital technology: Interim Report
Submission Date: 29 September 2025
The Law Council of Australia provided a submission to respond to the Interim Report published by the Productivity Commission in respect of its inquiry into harnessing data and digital technology.
The Interim Report identifies reform options to boost overall productivity in four policy areas, taking account of the unique nature of data and digital technology:
- enabling the productivity potential of artificial intelligence (AI);1
- new pathways to expand data access;2
- supporting safe data access and use through outcomes-based privacy regulation;3 and
- enhancing reporting efficiency, transparency, and accuracy through digital financial reporting.4
This submission provides feedback on the seven draft recommendations in the Interim Report. The Law Council’s position on each recommendation is summarised below:
- Recommendation 1.1: Productivity growth from AI will be built on existing legal foundations. Gap analyses of current rules need to be expanded and completed
- Support. A gap analysis would identify where existing laws may be inadequate to assure safe, responsible, and secure applications of AI, and investment in uplifting Australia’s AI capability. Solutions to identified gaps should be framed in technology-neutral terms.
- Recommendation 1.2: AI-specific regulation should be a last resort
- Support. Current legislation should be expanded and, where necessary, new targeted legislation should be introduced, rather than seeking to explicitly regulate AI via a comprehensive ‘AI Act’.
- Recommendation 1.3: Pause steps to implement mandatory guardrails for high-risk AI
- Do not support. Given the pace of technological change and the economy-wide embrace of AI, steps should continue to be taken to implement mandatory guardrails as a priority, in consultation with cross-disciplinary experts.
- Recommendation 2.1: Establish lower-cost and more flexible regulatory pathways to expand basic data access for individuals and businesses
- Support in part. The Consumer Data Right could provide a more coherent vehicle for expanding data access, and for organisations to share data in a consistent format, although the significant compliance costs that are currently deterring engagement will need to be addressed.
- Recommendation 3.1: An alternative compliance pathway for privacy
- Position reserved until further information is provided, as it is currently unclear how such a pathway would operate in practice, or interact with existing domestic and international privacy frameworks.
- Recommendation 3.2: Do not implement a right to erasure
- Support. There is no evidence that an extension of existing rights is required, and there may be numerous unintended consequences if such a right is introduced.
- Recommendation 4.1: Make digital financial reporting the default
- Support. Digital financial reporting is likely to make engagement with financial documents simpler, more streamlined, and more effective.
Regarding Information Request 1.1 (about the interaction between copyright and AI), we consider that, while the use of copyright works in AI training presents a novel challenge, Australia’s existing copyright regime is unlikely to need major reform—noting the work currently being undertaken by the Attorney-General’s Department and the Copyright and AI Reference Group.5 Any regulatory gaps, or refinements to licensing, can likely be addressed within the current framework, which has historically adapted to technological change without discarding established rights and principles.
The Law Council looks forward to engaging with the Productivity Commission’s Final Report, which is due to be provided to the Australian Government in December 2025.
1 Productivity Commission, Harnessing data and digital technology (Interim Report, August 2025) 9.
2 Ibid 29.
3 Ibid 51.
4 Ibid 69.
5 Attorney-General’s Department, Copyright and Artificial Intelligence Reference Group (CAIRG) (2025).
Last Updated on 20/10/2025
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