The Productivity Commission has recommended that the government take a "stepped, gradual approach" to regulating artificial intelligence (AI), warning against "overzealous lawmaking" that could stifle innovation and put local policy out of step with global norms. This approach prioritizes harnessing AI's productivity benefits while managing risks through existing legislation and sector-specific regulations.
The commission's advice is to implement new regulations only where risks cannot be managed using existing legislation, and to lead by example by adopting a stepped approach to AI regulation. This recognizes that new technology doesn't necessarily require new rules. The commission also emphasizes the importance of participating in global rule-setting efforts, acknowledging that regulatory approaches in key overseas markets will influence AI developments and outcomes in Australia.
By adopting a gradual approach, the government can ensure that regulations are effective, yet flexible enough to accommodate the rapidly evolving AI landscape. A well-crafted regulatory framework can support Australia's productivity growth by fostering innovation and responsible AI adoption. The commission's advice aims to balance the need for regulatory oversight with the risk of over-regulation, which could limit AI's potential productivity gains.
