The Australian Competition and Consumer Commission (ACCC) released a detailed assessment of artificial intelligence developments on December 17, 2025, highlighting significant advancements in agentic systems and growing concerns over consumer protection that impact digital advertising. The report, titled “Recent developments in artificial intelligence – Industry snapshot,” updates findings from the ACCC’s March 2025 final report, illustrating the rise of generative AI, agentic systems capable of autonomous decision-making, and substantial investments in AI infrastructure.
Documenting transformative changes in the advertising landscape, the ACCC noted that major platforms unveiled new models between March and December 2025, including Gemini 3 Pro, GPT-5, Claude Sonnet 4.5, and Grok 4.1. These models have surpassed existing benchmarks, prompting the need for new evaluation methodologies. Investment in AI infrastructure has surged, with Google, Meta, Microsoft, and Amazon collectively committing A$627 billion in capital expenditures for 2025. OpenAI also secured partnerships worth over US$1 trillion to bolster its infrastructure.
Competition for AI talent has escalated sharply, with salaries for engineers and researchers reaching as high as US$300 million over four years at leading tech firms. The report highlighted a trend of “acquihires,” where companies absorb start-ups to access expertise and technology without formal acquisitions, leading to a consolidation of talent in the industry.
Agentic AI has emerged as a pivotal development marked by systems that operate autonomously, performing tasks with little human intervention. Notable launches from major corporations included Microsoft’s Copilot, OpenAI’s Instant Checkout, and Google’s AI Mode. Additionally, Visa introduced its Intelligent Commerce Program. These advancements allow for the creation of multi-agent systems where multiple autonomous agents collaborate to achieve common goals.
The advertising sector has rapidly adopted agentic AI technologies, as exemplified by Amazon’s introduction of Ads Agent for automated campaign management and LiveRamp’s announcement of agentic orchestration capabilities. Google also expanded its Ads Advisor and Analytics Advisor features to all English-language accounts in December.
However, the ACCC’s snapshot underscored significant risks associated with the deployment of autonomous systems. The report cautioned that agentic systems could facilitate collusion among competing agents and complicate liability issues in cases of harm. These concerns are particularly relevant in advertising, where agents make autonomous bidding decisions and optimize campaigns without human oversight.
Consumer data practices emerged as a critical issue, with research indicating that 83% of Australians believe companies should obtain consent before using personal data for AI training. Nonetheless, many firms altered their terms of service to allow data collection for AI training without explicit user consent. The report noted that major platforms modified privacy policies to increase data access, which could lead to violations of consumer rights.
Misleading advertising through AI-generated content poses another significant threat. The ACCC documented instances of AI creating fake product images and descriptions, promoting fraudulent products through deceptive marketing strategies. The phenomenon of “AI washing,” where companies falsely advertise the sophistication of their AI capabilities, undermines consumer trust and provides unfair advantages to those willing to misrepresent their products.
Additionally, the report highlighted the growing prevalence of AI-generated fake reviews, with documented growth rates exceeding 1,000% on certain platforms from 2022 to 2025. These fake reviews complicate the e-commerce landscape, making it challenging for consumers to distinguish between authentic feedback and fabricated content. The findings suggested that AI chatbots in customer service may not adequately convey consumer rights under Australian law, potentially disadvantaging less informed consumers.
Emerging concepts such as hypernudging, utilizing personalized data to manipulate consumer behavior, further complicate the landscape. The report noted that scam losses had reached A$260 million in the first nine months of 2025, with AI making scams cheaper, more efficient, and more convincing. This allows fraudsters to tailor their tactics based on individual responses, significantly increasing the risk to consumers.
The regulatory environment continues to evolve, with Australia’s National AI Plan and recent findings from Treasury’s Review of AI and the Australian Consumer Law indicating that existing consumer protection laws can adapt to AI challenges. However, practical implementation may necessitate updated guidance and enforcement strategies.
As AI technologies integrate into consumer-facing applications, the ACCC’s snapshot emphasizes the need for regulatory frameworks to address emerging risks while fostering innovation. With substantial investments in data centers and technological infrastructure, Australia is positioning itself as a key player in the global AI landscape, reflecting both the opportunities and challenges posed by rapid advancements in this sector.
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