Australia’s burgeoning artificial intelligence sector could contribute an additional $7 billion annually to the national economy by 2035, but local artists and creators face challenges in securing fair compensation for their work used in AI training, according to submissions to a Senate inquiry on Thursday.

The Minderoo Foundation, led by Andrew and Nicola Forrest, highlighted concerns that the existing copyright framework is inadequate for protecting Australian creative content. Minderoo’s director of communications and campaigns, Sam Calabrese, told the inquiry that much of the creative material utilized to train AI models is accessed without permission or payment, often through providers operating outside Australian jurisdiction. This creates a complex and expensive path for Australian creators seeking redress.

Calabrese advocated for encouraging AI companies to conduct their model training within Australia. “Attracting that investment, particularly in AI model training, would bring these activities within the reach of Australian law,” he said, enabling better enforcement of fair compensation for rights holders and creators. Preliminary analysis by Minderoo and consulting partners estimates AI training could add approximately $7 billion annually to Australia’s GDP by 2035, on top of projected productivity improvements.

The issue of copyright and AI training data has become a significant point of debate for the federal government, which must reconcile rapid technological advancement with protections for creatives, including artists and journalists. To address the gap, Minderoo has proposed a limited statutory permission model featuring an opt-out system. Under this framework, AI training would be limited to lawfully accessed content, providing a safety net for creators who may lack the resources to individually negotiate with major technology companies.

Calabrese further suggested establishing a fund funded by compulsory contributions from AI companies. This would ensure that Australians whose work is identified as part of AI training datasets receive appropriate compensation. He proposed the fund could more broadly support the creative industries sector nationwide.

Supporting the economic potential of AI model training in Australia, Wesa Chow, executive director of the think tank Per Capita, drew parallels to Norway’s North Sea oil development, describing it as a “multi-billion dollar opportunity” if Australia can successfully attract and retain AI investment and infrastructure.

As the government considers regulatory reforms, the inquiry reflects growing recognition that balancing AI innovation with robust copyright safeguards will be crucial for the future of Australia’s creative and technological sectors.