The Albanese government has ruled out a controversial proposal to let artificial intelligence developers freely mine copyrighted material as it moves to modernise Australia’s copyright framework for the AI era.

Attorney-General Michelle Rowland will this week summon a two-day meeting of the government’s Copyright and AI Reference Group (CAIRG) to examine how copyright laws can better protect Australian creators.

The group will consider a new paid licensing model for AI developers, along with ways to clarify copyright ownership for AI-generated works and to reduce the cost of legal enforcement.

Rowland confirmed that Labor will not adopt a “text and data mining” exemption – a measure proposed by the Productivity Commission that would have allowed tech giants to use creative works to train AI systems without permission or payment.

The decision follows months of backlash from artists, authors and media companies who warned that such an exemption would amount to “industrial-scale copyright theft.”

Industry figures including News Corp Australasia executive chairman Michael Miller and ARIA chief executive Annabelle Herd (pictured above) welcomed the government’s stance, calling it a victory for Australian culture and a signal for AI firms to license local content.

Herd, who sits on the CAIRG, said the move was “a critical first step” toward ensuring fair compensation for creators.

“Artists deserve the right to decide how their work is used and to share in the value it creates,” she said.

The review represents a key step as Australia works to balance AI innovation with the protection of intellectual property.