Yorta Yorta rapper Adam Briggs has told a Senate inquiry it would be hard to get the genie "back in the bottle" if Australia allows big tech companies to mine creative works without fair pay.

Appearing on Tuesday before the inquiry into National Cultural Policy, the artist who goes by the stage name Briggs, urged the federal government not to permit data mining exemptions for technology companies training generative AI models.

"Why is it a radical notion that artists should be compensated for their work?" Briggs asked, responding to questions from Greens Senator Sarah Hanson-Young.

In a rare show of unity, Senator Hanson-Young and Liberal Senator Sarah Henderson criticised the Productivity Commission, accusing it of "waving the white flag" on protecting artists.

"Rather than standing up for our creative industries," Senator Henderson said. "You're saying very clearly it's not realistic that you could stop this."

She added, "Copyright in this country is worth protecting. Where is the benefit to Australian artists in having their work scraped by AI?"

When asked whether a generative AI model could create a fake Briggs track, the rapper told the inquiry: "I doubt it very much. I don't think at the moment, AI understands what a lounge room in Shepparton, Victoria smells like."

"It's the innate human quality of the art and the authenticity that we strive to create, that our audience strives for and expects from us as artists. And, quite simply, all we're trying to do is future-proof that, to make sure we have sustainable careers.

"Not just for myself, but for the next generation of young black fellas. From Shepparton, from Wagga, Wagga, from throughout the country, you know? And that is, like, paramount to our art."

Briggs likened generative AI to inauthentic souvenirs.

"It was the equivalent of seeing a boomerang in an airport," he said.

"You know it's been mass-produced. It lacks authenticity, and that's why you don't pick it up.

"The things we make are steeped in authenticity. It's steeped in our heart. It's steeped in our knowledge and our experience as black fellas, as Australian artists, and you can't replicate that."

Productivity Commission under fire

The inquiry scrutinised the Productivity Commission's interim report on AI, which floated a possible text and data mining (TDM) exemption in copyright law. This would allow copyrighted works to be used to train AI without permission or payment.

Commissioner Julie Abramson defended the report, saying more than 400 submissions were received.

"One of the purposes of our interim report is to seek feedback on these issues," she said.

Fellow commissioner Stephen King said Australia's copyright laws were not fit for purpose when it comes to AI. While stressing the TDM proposal was "an option rather than recommendations," he argued it was "not realistic" to prevent Australian content from being used by overseas AI models that sit outside domestic copyright law.

The Commission also admitted it had not consulted the creative industries, nor modelled their contribution to the economy — sparking outrage from senators.

"I am gobsmacked that the Productivity Commission issued their interim report in August without consulting all of the appropriate industries and bodies and without doing their homework," Senator Hanson-Young said.

"You consulted with MasterCard, Microsoft, Meta, OpenAI, Xero, Deloitte, you consulted with a lot of other players, but you didn't consult with the creative industries."

She added she wanted to know who raised copyright as a problem requiring exemptions.

Artists demand fair pay

Creative Australia, in a submission to the Commission, said: "Much of the data has been used reportedly without consent from the original creator, and without acknowledgement or remuneration. The global nature of the technology industry has made it difficult for the owners of creative work to enforce their intellectual property rights and be remunerated for the use of their work."

Musician Holly Rankin, known as Jack River, told the inquiry the future of Australian music was under threat. She urged the government not to consider TDM exemptions.

"It is likely there will not be well-known Australian artists in 10 to 20 years," she said, calling it "shocking" that creative industries had not been consulted.

"The truth is simple, technology companies are able to pay for licenses, they just don't want to."