ACCC Highlights Rapid AI Developments and Emerging Risks for Australian Businesses and Consumers

The Australian Competition and Consumer Commission (ACCC) has released a new snapshot highlighting the rapid growth of artificial intelligence (AI) technologies in 2025 and the potential implications for both consumers and businesses in Australia. This update builds on the ACCC’s March 2025 Final Report of the Digital Platform Services Inquiry, underscoring the need for ongoing monitoring of emerging digital technologies.

ACCC Chair Gina Cass-Gottlieb emphasised that AI-enabled products and services are becoming increasingly central to daily life and business operations. “New developments have the potential to transform how Australians work, communicate, and engage with digital services. However, they also come with risks of potential harms to consumers and competition,” she noted.

AI can amplify online scams and fake reviews, presenting new challenges for Australian consumers and businesses.

The snapshot reviews significant advancements in AI applications, including AI agents and foundation models, and highlights their integration with existing digital platform services. While these integrations can enhance user experiences, they may also create barriers for businesses entering or expanding in digital markets and affect consumer choice.

Emerging Consumer Risks

As AI adoption grows, so too do risks for Australian consumers. The ACCC flagged potential issues such as:

• Widespread collection and use of consumer data, often without informed consent.

• Generative AI facilitating false representations about products or services.

• AI-generated fake reviews and enhanced online scams.

Research cited by the ACCC found that 83% of Australian consumers believe businesses should obtain consent before using personal data to train AI models. Yet, vast amounts of data are already being used to train AI, often hidden in lengthy and complex privacy policies.

Monitoring AI and Digital Markets

The ACCC stressed that emerging AI technologies require continued scrutiny from both regulators and governments. The snapshot supports the government’s proposed digital competition regime, which aims to ensure fair competition in digital markets and protect consumer interests. The ACCC will continue to monitor AI-related investments, acquisitions, and partnerships, including “acquihires”, deals designed to acquire technical talent.

For Australian businesses, this means staying informed about regulatory developments and potential compliance obligations related to AI use, data handling, and digital platform engagement.

About Bane Legal Services

Bane Legal Services is not a law firm and does not provide legal advice. Instead, we act as your trusted legal matchmaker, connecting business clients with the right commercial lawyers based on over 30 years of business experience. Keeping up with regulatory changes, like those highlighted by the ACCC, can help ensure your business is partnered with lawyers who understand both the law and your commercial realities.

Source: ACCC Media Release, 17 December 2025 - ACCC Snapshot on AI Developments