Artificial Intelligence (AI) could add more than $116 billion to the Australian economy over the next decade if the government does not stifle the technology with tough new laws, according to a new report.

The Productivity Commission’s interim report into harnessing data and digital technology has urged the government to pause steps to implement “mandatory guardrails” for high-risk AI and, instead, review the current laws for any gaps that could be filled.

“Like any new technology, AI comes with risks. But we can address many of these risks by refining and amending the rules and frameworks we already have in place,” Productivity Commissioner Stephen King said.

“Adding economy-wide regulations that specifically target AI could see Australia fall behind the curve, limiting a potentially enormous growth opportunity.”

The commission said AI-specific regulation should only be considered as a “last resort”.

This could then allow the technology to generate more than $116 billion for the nation’s economic activity over the next 10 years and promote a $4300 real wage boost for the average Australian.

AI adoption across the economy could, however, create ”painful transitions” for workers who would be made redundant, the commission added. 

Treasurer Jim Chalmers said AI was a “game changer” for the Australian economy. 

“The responsibility that we embrace is to make this work for people, not against them, to make them beneficiaries, not victims of this change, including in the workforce,” he said.

Both sides of parliament agree that restrictions are needed for AI, without being restrictive to the technology. 

But contention has risen over whether tech companies should be able to use data from Australian people, artists and media to train their AI models. 

“It’s not appropriate for big tech to steal and use it for their own ends without paying for it,” Opposition Leader Sussan Ley said.

”Why are these tech companies getting to use the content you and I create for free and then make money off it? I don’t think that’s fair,” Nationals Senator Matt Canavan said.

AI will dominate discussions during an upcoming economic reform roundtable.