While the news bargaining incentive had been a step towards supporting investment in Australian journalism, the government shouldn't bow to pressure from big tech, chief executive Matt Stanton told Nine's annual meeting on Friday.
"The model under consideration is deeply flawed," Mr Stanton told shareholders in Sydney.
"It puts the onus on rights-holders to protect their content, rather than on AI companies not to steal it."
Multiple copyright and licensing models for AI training and development are on the table through government consultations with the attorney-general and the Copyright and Artificial Intelligence Reference Group.
Statutory licensing, under which AI companies pay a set fee to use content, has been criticised for potentially leaving some creators empty-handed despite the use of their works.
Nine, which in July struck a deal with Microsoft to provide content access to its Copilot large language model, argued rights holders must be involved in rights deals.
"We've been clear with the government that we believe the way forward for AI is voluntary licensing deals, and the best way to preserve the market for those agreements is through strong copyright laws that support content creators," Mr Stanton said.
The group's chair Peter Tonagh agreed.
"If you train or power an AI system on Australian journalism, sport or entertainment, you pay for it, and you attribute it," Mr Tonagh told the meeting.
"Not after a fight. As a condition of use."
Internally, Nine expanded its use of AI including across promotions, creative, "semantic search", and credit collection, but the chair said the organisation understood its best use was through human interaction.
"AI is no use without the news and the existing content, and that's the core role that journalists play and will continue to play in our business - the creation of the content that the AI tools will ultimately use," Mr Tonagh said.
Nine has continued to streamline its operations in recent years, selling Nine Radio, Pedestrian, its 60 per cent stake in Domain, while leaning more heavily into its 9Now, Stan and Stan Sport streaming platforms, and buying outdoor advertiser QMS for $850 million.
"The result is a different company," Mr Tonagh said.
As total revenue from television fell six per cent in the quarter to September 30 compared to a year earlier, Nine's newer businesses were making ground.
"In FY27 we expect our growth businesses, Stan, 9Now, Outdoor and Digital Publishing, to deliver more than 60 per cent of our revenue and around 70 per cent of our EBITDA (earnings before interest, tax, depreciation and amortisation)."
Investors liked what they heard, sending Nine Entertainment shares 7.5 per cent higher in early trade to $0.79.
