An Australian Senate inquiry has criticised tech giants Amazon, Google, and Meta for their lack of transparency in using Australian data to train artificial intelligence (AI) models.
The inquiry found the companies evasive and unwilling to disclose key details about how they leveraged personal and private data. The final report, released this week, highlighted the urgent need for new laws to regulate AI and protect Australians’ rights.
Calls for standalone AI laws
Labor Senator Tony Sheldon chaired the inquiry, emphasizing the need for standalone AI legislation to combat what he referred to as “piracy” by tech multinationals. Sheldon accused companies of exploiting Australian culture, data, and creativity for profit while offering nothing in return.
The report recommended categorising general-purpose AI models, such as OpenAI’s GPT, Meta’s Llama, and Google’s Gemini, as “high risk,” requiring mandatory transparency and accountability measures.
Existing laws, according to the inquiry, are insufficient to address the scale and speed of AI’s impact. Sheldon specifically pointed out that firms such as Amazon and Google declined to elucidate the use of data from services such as Alexa, Kindle, and Google’s platforms in AI training. Meta admitted to scraping data from Australian Facebook and Instagram users since 2007 but could not explain how users could have consented to a use case that didn’t exist at the time.
AI’s threat to creative workers
The inquiry also highlighted the significant risks AI poses to creative industries, recommending mechanisms to compensate creatives when AI models use their work. The report called for developers to declare copyrighted materials in their datasets and ensure proper licensing and payment. Creative workers, the report noted, are among the most vulnerable to AI’s rapid evolution, which could severely disrupt their livelihoods.
Organisations like APRA AMCOS and the Media Entertainment and Arts Alliance praised the report’s recommendations, which include establishing an AI Act. They believe the proposed measures provide clear steps to protect creative industries from the unchecked use of their intellectual property by AI systems.
Balancing regulation and opportunity
Not everyone on the committee agreed with the report’s recommendations. Coalition senators Linda Reynolds and James McGrath cautioned against over-regulating AI, arguing it could stifle innovation and hinder potential job creation. They viewed AI as a larger threat to cybersecurity and national security than to the creative economy. The Greens, on the other hand, criticised the report for not going far enough, saying Australia risks lagging behind jurisdictions like the UK, Europe, and California in AI regulation.
The debate underscores the complexity of addressing AI’s challenges while fostering its opportunities. With AI’s influence expanding rapidly, the report is a critical step in shaping Australia’s approach to this transformative technology.
