Australia’s Productivity Commission (PC) has released its interim report on harnessing data and digital technology, outlining a bold vision for national productivity growth powered by artificial intelligence, improved data access, and modernized regulation. The report, now open for public comment, urges swift yet measured government action to unlock the economic potential of emerging technologies while safeguarding consumer rights.
Central to the PC’s recommendations is a shift toward outcomes-based regulation of artificial intelligence. While acknowledging AI’s transformative capacity—especially in improving productivity and reducing costs—the report warns against premature or overly prescriptive rules. It recommends pausing the rollout of “mandatory guardrails” for high-risk AI systems until thorough reviews of existing laws are completed. AI-specific regulations should only be introduced if current frameworks prove inadequate and technology-neutral solutions are unworkable.
The report also identifies significant inefficiencies in Australia’s current data-sharing landscape. To spur innovation and competition, the PC advocates for new, flexible regulatory pathways that would grant individuals and businesses easier access to data that pertains to them. Use cases include allowing tenants to download rental ledgers or enabling farmers to aggregate equipment data for operational optimization. The Commission estimates a mature data-sharing regime could boost the economy by up to $10 billion annually.
On privacy, the PC calls for reform of the Privacy Act to replace rigid controls with a more flexible, outcomes-based compliance path. It opposes implementing a “right to erasure,” citing excessive costs and limited benefits. The report emphasizes that current consent mechanisms often devolve into box-ticking exercises, stifling innovation without offering real protections.
Finally, the PC recommends making digital financial reporting mandatory, replacing outdated hard copy or PDF submissions. This change would enhance transparency, streamline regulatory oversight, and improve the accuracy of financial data analysis.
Public submissions are invited through September 15, 2025, after which the final report will be published. The PC’s forward-looking proposals could serve as a model for governments worldwide balancing technological advancement with responsible governance.
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