Australia could lead globally in protecting local music creators

"a critical step forward"

CONTENT COURTESY APRA AMCOS

Music industry bodies APRA AMCOS and the National Aboriginal and Torres Strait Islander Music Office (NATSIMO) welcome new draft AI regulations announced today by the Australian Government, which include mandatory guardrails for transparency on datasets used in AI systems.

Dean Ormston, CEO of APRA AMCOS, says: “This regulatory milestone is a critical step forward in finding ways to protect the rights and livelihoods of music creators and ensuring a fairer and more sustainable industry.

“The introduction of mandatory transparency requirements would be a significant victory for our industry and has the potential to bring Australia into line with European Union and other international jurisdictions that value the economic, social and cultural importance of their arts, reative industries and communities.”

The draft guidelines published today by the Australian Government are a critical next step to ensure Australia’s regulatory system is fit-for-purpose to respond to the distinct risks that AI poses. They include mandatory transparency requirements and guardrails in high-risk settings that include those that would have adverse legal effects, defamation or similarly significant effects on an individual and to the broader Australian economy, society, environment and rule of law, which would include copyright.

“If implemented, these measures have the potential to compel AI platforms and developers to disclose the origin and composition of datasets used to train their systems,” adds Ormston. 

“With this level of disclosure, artists, creators and rightsholders can level the playing field and negotiate appropriate agreements and ensure that their intellectual property is only used with the appropriate levels of consent, credit and remuneration.”

Last month APRA AMCOS released a landmark study – AI and Music – detailing the economic impact of AI on the music industry in Australia and New Zealand. The report highlighted alarming projections of revenue and income loss of 23% or $519m by 2028 for artists, songwriters and composers if AI technologies continue to operate without proper regulation and licensing. The report also included the largest survey of its kind, finding that 97% of songwriters, composers and music publishers demand that government pay more attention to the regulatory settings for AI and copyright.

“These draft regulations are a promising step towards protecting the livelihoods of music professionals and ensuring the economic benefits of AI are shared fairly. The industrial-scale copying and scraping by big tech companies to build large language models (LLMs) without regard for artists and creators must stop,” adds Ormston.

“However, these draft regulations are just the beginning. To be effective, these guardrails and transparency obligations must apply to all AI services that are made available in Australia, irrespective of where in the world the AI model’s training took place. This is a global industry and sanctions for non-compliance must also be imposed on platforms based overseas but operating in Australia to avoid unfair competition against local services who want to play by the rules.”

The draft regulations also include consideration for the adverse risks that AI pose to groups of individuals or collective rights of cultural groups. It is critical these guardrails protect the unique Indigenous Cultural Intellectual Property (ICIP) of Aboriginal and Torres Strait Islander communities.

Leah Flanagan, Director of NATSIMO, says: “The rise of AI technology presents serious risks to the cultural and economic wellbeing of Indigenous communities. The APRA AMCOS report into AI found that 89% of the Aboriginal and Torres Strait Islander songwriters and composers surveyed believe that AI has the potential to lead to cultural appropriation.  

“While government efforts have begun to address the unauthorised use of ICIP in arts and crafts, particularly in mass-produced items, this work must focus quickly to include all areas of Aboriginal and Torres Strait Islander cultural creation.

“We encourage government to look to systems of cultural permission within Aboriginal and Torres Strait Islander communities as a blueprint for the use of Indigenous cultural intellectual property within AI.”

APRA AMCOS and the NATSIMO are committed to working closely with government, industry stakeholders, and AI developers to ensure the successful design and implementation of these draft regulations. With the right protections in place, AI can complement and enhance both the music industry and the tech sector, to ensure these new technological advancements are fair and sustainable for all.

The full AI and Music Report and webinar are available at apraamcos.com.au/AIandmusic