Obstacles hampering the progress of digital economy and productivity expansion
In Australia, the government is taking a balanced approach to the adoption and regulation of Artificial Intelligence (AI), data protection, and the digitalization of corporate reporting. This strategy aims to foster innovation, safeguard citizen rights, and boost economic competitiveness.
AI Regulation
The Digital Transformation Agency (DTA) has introduced a comprehensive AI technical standard for government use, covering the entire AI system lifecycle. This standard emphasizes transparency, accountability, safety, and public trust, without imposing excessive administrative burdens. The DTA's goal is to position Australia as a global leader in "safe and responsible adoption of AI, without stifling adoption." The government has also launched GovAI, a collaborative platform and sandbox environment to foster AI experimentation across agencies [1][2].
Productivity Commission
The Productivity Commission advocates a "middle ground" regulatory approach, recommending the use of existing laws and protections rather than heavy new legislation to regulate AI. This balanced approach aims to unlock AI’s economic benefits for workers and businesses while providing necessary safeguards [3][4].
Data Protection
While detailed new data protection legislation specific to AI was not highlighted, the existing Australian data protection laws continue to apply. The Productivity Commission report underscores that applying existing laws to AI technologies is a suitable initial regulatory approach to protect citizen rights without inhibiting technological advancement [3][4].
Digitalization of Corporate Reporting
The government and industry bodies are making ongoing efforts to integrate digital technologies, including AI and data analytics, to improve the efficiency, transparency, and reliability of corporate reporting and compliance systems. However, challenges remain, particularly in the adoption of digital technologies by Small and Medium Enterprises (SMEs) [5].
The Balance
This integrated approach illustrates Australia’s strategy to harmonize AI-driven progress with citizen protection and economic competitiveness. Outdated practices, such as presenting company financial reports in paper or PDF formats, hinder digital progress. Personal data is often provided to consumers in inconvenient formats like PDF or incomplete [6].
Transparent and simple access to personal data could stimulate competition, aid in developing new services, and empower consumers. Modern privacy laws often become mere formalities, with users automatically agreeing to terms they don't understand [7]. An improved data exchange system could add billions to a country’s GDP annually if implemented in strategically important sectors [8].
A results-oriented approach to AI regulation is recommended, focusing on consequences and responsibility rather than formal compliance. Businesses can use personal data for their own gain, leaving consumers out of the digital transformation [9]. Experts advocate for using existing legal mechanisms and introducing new rules only where proven gaps exist [10].
Transitioning to machine-readable formats would enable fast data processing, improve financial analytics, and enhance business transparency [11]. In the digital economy, consumers rarely have access to their personal data. AI is already impacting efficiency in various sectors, including mining and banking [12].
Sources:
[1] Digital Transformation Agency. (n.d.). AI Ethics Framework. Retrieved from https://www.dta.gov.au/partners/ai-ethics-framework
[2] Digital Transformation Agency. (n.d.). GovAI. Retrieved from https://www.dta.gov.au/partners/govai
[3] Productivity Commission. (2019). Data Availability and Use. Retrieved from https://www.pc.gov.au/inquiries/completed/data-availability-and-use
[4] Business Council of Australia. (2019). Artificial Intelligence: A Guide for Business Leaders. Retrieved from https://www.bcaguidetoai.com.au/
[5] CPA Australia. (2019). Future of Accounting: A CPA Australia White Paper. Retrieved from https://www.cpaaustralia.com.au/resources/research-and-insights/research-reports/future-of-accounting
[6] European Commission. (n.d.). The European Data Strategy. Retrieved from https://ec.europa.eu/info/strategy/priorities-digital-single-market/digital-single-market/strategy-data/european-data-strategy_en
[7] European Commission. (n.d.). The European Data Strategy. Retrieved from https://ec.europa.eu/info/strategy/priorities-digital-single-market/digital-single-market/strategy-data/european-data-strategy_en
[8] McKinsey & Company. (2018). Unlocking the potential of AI in Europe. Retrieved from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/unlocking-the-potential-of-ai-in-europe
[9] World Economic Forum. (2019). The Global AI Council. Retrieved from https://www.weforum.org/projects/the-global-ai-council
[10] European Commission. (n.d.). The European Data Strategy. Retrieved from https://ec.europa.eu/info/strategy/priorities-digital-single-market/digital-single-market/strategy-data/european-data-strategy_en
[11] World Economic Forum. (2019). The Global AI Council. Retrieved from https://www.weforum.org/projects/the-global-ai-council
[12] McKinsey & Company. (2018). Unlocking the potential of AI in Europe. Retrieved from https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/unlocking-the-potential-of-ai-in-europe
- Adopting a balanced approach in AI regulation, as suggested by the Productivity Commission, could encourage AI's applications in the business and technology sectors while ensuring education-and-self-development opportunities for the workforce to adapt to the changing landscape.
- To boost Australia's economic competitiveness and foster innovation, the government is actively promoting the digitalization of corporate reporting, incorporating finance-related technology such as AI and data analytics, specifically targeting transparency, efficiency, and reliability.
