Forrest vs Farquhar: battle of the billionaires over AI’s future heats up

That’s the findings of research from Talbot Mills, which Andrew and Nicola Forrest’s Minderoo Foundation commissioned.

The study involved 2000 Australians aged 18 years or older and six focus groups to gauge public sentiment towards AI regulation. It found the biggest threat to AI-driven productivity gains – which the Albanese government expects to generate up to $600bn a year by 2030 – was the failure to build public trust.

The research found that 61 per cent of Australians prefer a balanced but firm approach to AI regulation – one that protects people while fostering innovation.

But when a balanced approach was removed, support for strict regulation jumped to 64 per cent – even if that meant sacrificing innovation and productivity.

Minderoo Foundation chief executive John Hartman said the findings did not mean that Australians were anti-AI.

“Australians see the productivity potential of AI, but they don’t want it to come at the cost of safety and privacy. They’re looking to government to step up with clear and balanced rules that allow innovation while protecting people,” Mr Hartman told this masthead.

“The real threat to AI-driven productivity gains isn’t the technology – it’s inaction and the failure to build public trust through fair, safe and transparent regulation. Without it, Australians will demand stricter rules, even if it limits the potential benefits of AI.”

This is contrast with Mr Farquhar, who argues that the threat of increased regulation on AI is already doing harm to Australia.

“While I believe our current regulations are broadly fit for the AI age, the uncertainty around future legislation is already deterring international investment,” Mr Farquhar said.

He said Australia could gain a significant slice of the AI boom, with changing copyright laws alone – which the Productivity Commission is considering – potentially attracting billions of dollars of foreign investment.

“Australia’s copyright laws are out of sync with the rest of the world. Whilst the US and Europe have fair use or exceptions for text and data mining, and the Australian Law Commission recommended changes in 2014 and the Australian Productivity Commission recommended changes in 2016, we still remain an outlier when it comes to copyright.

“This is a barrier to many AI companies training or hosting their models in Australia.

“We are in a perverse situation where copyright holders aren’t seeing any more money, but we also don’t see the economic upside of training and hosting models in Australia.”

But musicians Missy Higgins, Julian Hamilton of electronic duo The Presets, and Midnight Oil frontman, former Labor politician Peter Garrett, have blasted the idea as “galling and shameful”. That sentiment was widely mirrored in statements issued by music industry bodies including ARIA and APRA AMCOS, which expressed disappointment on behalf of its songwriter members.

“Big tech is on a rampage globally, which pays little heed or consequence to existing laws and regulations … particularly to copyright. It’s a powerful force, and now that it’s harnessing itself to the AI technological innovation, its power’s even greater,” Mr Garrett said.

But Tech Council of Australia chief executive Damian Kassabgi also cited separate research – which the TCA commissioned – that 49 per cent of Australians do not think the government understands AI “well enough to regulate it effectively”.

“This perception needs to shift and that means government must lead by example,” Mr Kassabgi said.

“That’s why the TCA continues to call for fit-for-purpose, interoperable and risk-based regulatory frameworks that facilitate domestic AI investment, talent and innovation.

“A clear, flexible and interoperable regulatory framework will give developers and organisations the confidence to invest in AI for the future, so Australia is not just a net consumer of AI, but a world leader.”

Mr Kassabgi acknowledged Australians were concerned about the pace of AI innovation.

“The main concerns raised by Australians on adopting new technologies relate to privacy, training and being involved in future decision making. But it’s positive to see that overall, Australians are optimistic and open minded,” he said, citing that 84 per cent of Australians in office jobs reporting that they use AI at work.

The TCA’s study was based on the responses of more than 2550 Australian workers.

This article first appeared in The Australian as Forrest v Farquhar: battle of the billionaires over AI’s future heats up