What is the nature and role of scripture in Judaism?

Answer 1

Judaism looks upon The Bible as divinely inspired. The idea of verbal dictation from God, which occurs here and there in the Bible, was applied by some rabbis to the Pentateuch, which was believed to have been written by Moses under verbal inspiration, and even to the whole Bible.

Answer 2

Our tradition is that the Hebrew Bible was given by God through His prophets, to provide knowledge, guidance, inspiration, awe and reverence, advice, law, comfort, history and more. It is the basis of Judaism.
The Hebrew Bible is a source of national pride for us (see Deuteronomy 4:6-8).

It increases our reverence towards God; crystallizes, strengthens and codifies our beliefs; insures our awareness and knowledge of our history; and provides powerful impetus to be ethical.
It makes us stand in awe of God, while also providing optimism and comfort through the prophecies of redemption. It inspires us to strive for holiness and informs us how to pray and to approach God's presence.
It gives us a great deal of general information, guidance and advice.
And it sets detailed laws, practices and traditions for us.

The laws themselves have various reasons. Some (such as the Passover) serve to reenact or remember events of our history.
Some (such as saying the Shema-prayer) serve to reiterate our belief in God.
Some of the laws (such as those of ritual purity and kosher food) serve to sanctify us.
Some (such as the laws of torts) serve to maintain an orderly society.
Some (such as the law against breaking a vow) serve to prevent bad character traits.
Some (such as the command to offer help) serve to engender good character traits.
And all of the commands serve to subjugate us to God's will (especially those commands for which no explanation is easily apparent).

Note that the Hebrew Bible "as is" isn't exactly what Judaism observes. Rather, it's taken together with the details provided in the Talmud, which is the Oral Law that was handed down along with the laws of Moses. Otherwise, the verses themselves often lack enough detail to be fulfilled as is.

See also:

What are some facts about Torah-scrolls?

What are the key teachings of Judaism?

What is the history of the Hebrew Bible?