Anthony Albanese has left the door open to changing copyright laws in a bid to attract AI investment in Australia.
Mr Albanese made the remarks during a visit to Apple headquarters, where he was shown new parental controls that were partly inspired by Australian reforms.
Paying a visit to Apple's headquarters in Cupertino, California on his way to New York, Mr Albanese also made the case for global rules to regulate the development of AI and said he would be speaking to like-minded leaders at next week's United Nations General Assembly.
Sitting on the sidelines was not an option, he said, describing AI as a "global phenomenon".
Debate over the pace of AI development is reaching an inflection point, with Anthropic chief Dario Amodei, backed by OpenAI's Sam Altman and Space X's Elon Musk, calling for a coordinated slowdown.
Ahead of his summit with Chinese President Xi Jinping at the White House this week, Mr Trump repeated, declaring he would establish a new "AI Force" to protect against the "decimation or destruction" of AI.
Speaking to reporters in Cupertino, Mr Albanese said writers, musicians and other creatives would maintain control over their intellectual property and be remunerated for any use of their work, but left the door open to an "opt out" model.
Making the case for AI investment, Mr Albanese said Australia could help shape the development of the technology.
Mr Albanese and Mr Cook held a 45-minute closed-door meeting which the prime minister described as a "proud moment".