This week in digital trust » Episode 139

#139 AI or bust – Has Australia’s Productivity Commission bought into the hype?

2 September 2025

This week we unpack the national conversation about AI’s role in solving Australia’s productivity challenges.
The Productivity Commission recently published a report arguing for a cautious approach to AI regulation, on the basis that it could prevent Australia from “unlocking a surge of productivity”.
Business and technology advocates have also doubled down, using the moment to call for various legal exemptions and a more laissez-faire approach to restrictions on companies building and deploying AI models.
We explore these ideas and the specific implications for areas like privacy and copyright.
Links:
Productivity Commission report https://www.pc.gov.au/inquiries/current/data-digital/interim
Article about Productivity summit (ABC News) https://www.abc.net.au/news/2025-08-07/artificial-intelligence-jim-chalmers-economics-reform-roundtable/105618958
Report on AI benefits (METR) https://metr.org/blog/2025-07-10-early-2025-ai-experienced-os-dev-study/
Article on how most AI experimentation is wasted effort (HBR) https://hbr.org/2025/08/beware-the-ai-experimentation-trap

Article about CBA call center AI bungle and stats on unsuccessful AI adoption (SMH) https://www.smh.com.au/business/banking-and-finance/bring-back-the-humans-cba-s-embarrassing-ai-jobs-bungle-a-salutary-lesson-20250821-p5moqk.html
Privacy Commissioner’s response to Productivity Commission report https://www.oaic.gov.au/news/blog/getting-ai-right-benefits-businesses,-productivity-and-the-community
Article about artists response to Productivity Commission report (ABC News) https://www.abc.net.au/news/2025-08-13/productivity-commission-ai-report-copyright-law-authors-respond/105646086
Interview with Scott Farquhar (ABC) https://www.abc.net.au/news/2025-08-12/could-australia-benefit-from-the-revolution-in-ai/105645406

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