The Australian government has officially ruled out granting technology companies unrestricted access to creative content for training artificial-intelligence models.

Attorney-General Michelle Rowland announced that the proposal to create a so-called “text and data mining” exemption will not proceed, following push-back from writers, artists and media organisations.

Rowland said Australian creatives “are not only world-class, but they are also the lifeblood of Australian culture, and we must ensure the right legal protections are in place”.

The decision comes after the Productivity Commission in August floated an amendment to the Copyright Act 1968 that would have permitted tech firms to use copyrighted works without authorisation for AI training under a fair-dealing exception.

The interim report from the Productivity Commission estimated that artificial intelligence could boost Australia’s economy by around A$116 billion over the next decade, and proposed options to facilitate access to copyright materials to fuel AI innovation.

Many tech-industry voices, including Tech Council of Australia chair and Scott Farquhar of Atlassian, argued that loosening copyright rules would attract billions of dollars in foreign investment.

However, the proposal triggered a strong backlash from the creative sector, including the Australian Society of Authors and the Australian Recording Industry Association (ARIA).

Writers warned that a broad exemption would amount to “free access” for large tech companies to exploit their works without payment, and Indigenous creators raised concerns that such mining could undermine Indigenous cultural and intellectual property protections.

Under the government’s announcement, the Copyright and AI Reference Group will convene to explore alternative mechanisms, such as a paid licensing framework under the Copyright Act.

Rowland said the government remains committed to advancing AI and its economic benefits, while ensuring that Australian creators benefit from those opportunities.

Media and creative industry leaders welcomed the move as “a win for common sense”, stating that existing licensing structures should remain the foundation for how Australian work is used in AI.

The decision signals a clear stance by Australia’s government: it will protect creator rights while engaging with the opportunities of generative AI. As conversations continue over how to regulate AI training data and licensing, the focus now shifts to implementing frameworks that support both innovation and cultural integrity.