Data and digital technologies are the modern engines of economic growth. Australia needs to harness the consumer and productivity benefits of data and digital technology while managing and mitigating any downside risks. There is a role for government in setting the rules of the game to foster innovation and ensure that Australians reap the benefits of the data and digital opportunity. 

Emerging technologies like artificial intelligence (AI) could transform the global economy and speed up productivity growth. This paper considers multifactor productivity gains above 2.3% and labour productivity growth of about 4.3% likely over the next decade, although there is considerable uncertainty. But poorly designed regulation could stifle the adoption and development of AI. Australian governments should take an outcomes-based approach to AI regulation – using our existing laws and regulatory structures to minimise harms (which the Australian Government has committed to do in its National AI Plan) and introducing technology-specific regulations only as a last resort.

This final inquiry report presents recommendations focused on 5 key policy reform areas.

1. Enable AI’s productivity potential
2. Copyright in the age of AI: finding the right balance
3. Rightsizing data access
4. Outcomes-based privacy regulation
5. Enhance reporting efficiency, transparency and accuracy through digital financial reporting.