ADMA’s Productivity Commission submission – AI focus
ADMA has made two submissions to the Productivity Commission’s 2025 reform consultations. For marketers, these submissions address proposed amendments to privacy, AI, and data regulations that directly impact how the industry will use digital data in the future. ADMA’s position supports balanced, outcomes-based regulation.
In 1987 the economist Robert Solow stated, “You can see the computer age everywhere but in the productivity statistics.”[1]
Australia is facing a longstanding productivity challenge. For the decade leading up to 2019, productivity growth was effectively stagnant. [2] During the COVID-19 pandemic, a temporary boost gave the appearance of progress. As noted in a recent Productivity Commission research paper:
“A labour productivity bubble emerged during the pandemic. Labour productivity rose to a record high from the onset of the pandemic in January 2020 to March 2022 before declining and returning to its pre-pandemic level in June 2023”.[3]
Labour productivity fell by 0.1% in the fourth quarter of 2024 and by 1.2% for the year overall.[4]
In response, the Productivity Commission has outlined a five-pillar reform agenda to revitalise national productivity:
- Creating a dynamic and resilient economy
- Building a skilled and adaptable workforce
- Harnessing data and digital technology
- Delivering quality care more efficiently
- Investing in cheaper, cleaner energy and the net zero transformation
For the digital marketing industry, Pillar 3 – Harnessing Data & Digital Technology is critical.
ADMA has actively engaged with this process to ensure reforms enable innovation for industry without undermining rights, competition, or creativity. ADMA has made two submissions so far.
Submission 1: 10 July 2025
New laws should fill gaps; not expand existing regimes.
ADMA emphasised that new legislation should aim to close existing regulatory gaps rather than expand already complex legal frameworks. While supporting efforts to improve productivity and business efficiency, ADMA warned that these goals should not come at the cost of eroding privacy rights, compromising security, or diminishing public trust in how data is used.
ADMA argued that digital trustworthiness can be achieved through reforms that are proportionate and balanced. Heavy-handed regulations, vague requirements, or poorly targeted enforcement measures risk introducing unnecessary compliance costs, particularly for smaller businesses.
Such outcomes would ultimately undermine the productivity gains these reforms are intended to deliver. Instead, ADMA called for an approach that fosters innovation while safeguarding the public’s reasonable expectations around responsible data use.
Submission 2: 15 September 2025
To facilitate public consultation, the Productivity Commission published interim reports for each of the Government’s five pillar productivity reform areas, including the Harnessing data and digital technology Interim Report August 2025 (Interim Report).
The Interim Report includes preliminary actionable recommendations for reforms designed to improve productivity through data and digital technologies.
The Interim Report explored reforms in four areas:
- Enable AI’s productivity potential
- Expand data access pathways
- Outcomes-based privacy regulation
- Digital financial reporting efficiency
The Productivity Commission sought feedback on the following draft recommendation:
Draft Recommendation 3.1: The Australian Government should amend the Privacy Act 1988 (Cth) to provide an alternative compliance pathway that enables regulated entities to fulfil their privacy obligations by meeting criteria that are targeted at outcomes, rather than controls-based rules.
This new pathway would allow regulated entities to meet their privacy obligations by demonstrating that they have achieved desired outcomes, rather than adhering solely to prescriptive, control-based rules. ADMA expressed strong support for this approach, advocating for a regulatory model that reflects risk, context, and the nature of data usage.
ADMA proposed that the government assess factors such as the risk of serious harm, the entity’s role as a technology developer or user, and the sector in which it operates. The submission encouraged the use of tailored compliance mechanisms (e.g., sector-specific or transaction-based obligations) and the potential use of registered APP codes that reflect the scale and sensitivity of data use, particularly for SMEs and research organisations.
ADMA also supported the introduction of a general ‘reasonableness’ test for personal information handling. Under this model, regulated entities would bear the responsibility of demonstrating that their data processing practices meet reasonable expectations. However, this must be supported by clear and unambiguous guidance to ensure certainty for businesses and protect consumers.
The Interim Report outlines the case for AI being the solution underpinning a new wave of productivity in Australia, citing numerous areas where AI is being actively rolled out in Australian workplaces. In arguing the case that burdensome regulation can stifle innovation, the Productivity Commission proposes the following three draft recommendations:
- Draft recommendation 1.1: Productivity growth from AI will be built on existing legal foundations. Gap analyses of current rules need to be expanded and completed.
- Draft recommendation 1.2: AI-specific regulation should be a last resort.
- Draft recommendation 1.3: Pause steps to implement mandatory guardrails for high-risk AI.
Draft recommendations 1.1, 1.2, and 1.3 are largely aligned with the previous recommendation for proportionate, risk-based AI legislation made in response to ADMA’s first submission (July 10, 2025).
In addition to the draft recommendations posed in the Interim Report, the Productivity Commission is seeking feedback related to the issue of copyrighted materials being used to train AI models. One information request of particular interest to ADMA and the digital marketing members we represent, refers:
Information Request 1.1: The Productivity Commission is seeking feedback on the proposal to amend the Copyright Act 1968 (Cth) to include a fair dealing exception for text and data mining.
ADMA opposed the introduction of a broad text and data mining (TDM) exception under copyright law. Such an exception, it argued, would allow powerful AI developers to exploit the creative works of Australian artists, writers, and developers without compensation. This could not only undermine local industries but also reduce competition and limit innovation.
Instead, ADMA advocated for a fair use approach that enables AI training where it does not compete directly with existing business models or revenue streams. This would strike a better balance between technological progress and the protection of intellectual property rights in Australia.
Relevance to marketers
ADMA’s call for balanced, proportionate regulation ensures that marketers avoid extra (and excessive) compliance burdens that could potentially limit or add confusion to their work.
Similarly, recommendations for outcome-based privacy compliance ensures that marketers are given the flexibility to demonstrate their compliance. However, marketers still need to ensure that their use of data is reasonable and transparent.
In October 2025, the Australian Government rejected the proposal to amend Australia’s copyright laws and the recommendation to include a fair dealing exception for text and data mining.
Rather, AI developers require permission to use the work of another person or organisation. For some, this may include payment in exchange for the use of data for training AI models. On the other hand, this ruling ensures that original marketing content and creative assets are protected from being freely used by AI developers.
The bottom line
Across both submissions, ADMA is pushing for reforms that make AI safe, proportionate, supportive of local innovation, and fair for Australian businesses and creators.
[1] https://timesmachine.nytimes.com/timesmachine/1987/07/12/issue.html
[2] Productivity Commission, 2024. Creating a more dynamic and resilient economy, Terms of Reference, https://www.pc.gov.au/inquiries/current/resilient-economy/terms-of-reference
[3] Productivity Commission. Productivity before and after COVID-19 Research paper – Overview, https://www.pc.gov.au/research/completed/productivity-before-after-covid/covid-productivityoverview.pdf
[4] Productivity Commission. Quarterly productivity bulletin – March 2025, https://www.pc.gov.au/ongoing/productivity-insights/bulletins/quarterly-bulletin-march-2025/bulletinmarch-2025.pdf
