Australia has unveiled plans to develop a comprehensive national artificial intelligence (AI) strategy aimed at bolstering its AI capabilities, attracting investment, and harnessing the economic potential of this transformative technology. The Australian government projects that this initiative will unlock a $600 billion boost to the country’s GDP by 2030. The strategy, which will focus on developing AI skills, strengthening sovereign capabilities, and enhancing infrastructure, is set to be released in late 2025, following consultations with industry and public stakeholders.
The Federal Minister for Industry and Science, Ed Husic, emphasized the significance of the plan in fostering AI-driven investment, invigorating industries, and creating well-paid jobs across the nation. In a statement, Husic stressed the need to scale up critical technologies in ways that benefit businesses and workers alike.
Key Objectives of the AI Capability Plan
The national AI strategy seeks to address several critical areas, including investment, skill development, and sovereign infrastructure. The design of these elements positions Australia as a global leader in AI and ensures the wide distribution of the technology’s benefits across the economy.
Encouraging AI investments
A primary focus of the strategy is to enhance AI-related investment in Australia. The government plans to assess existing support mechanisms at both state and federal levels to determine how they either enable or hinder the growth of the AI ecosystem. Additionally, the strategy aims to identify methods to stimulate private sector innovation and investment in AI technologies, further accelerating the industry’s growth.
Strengthening AI capabilities
The plan will explore areas where Australian universities and businesses excel in research and innovation, leveraging these strengths to support the AI sector’s expansion. Moreover, it will identify opportunities for competitive advantages in key economic sectors such as agriculture, mining, and renewable energy. By capitalizing on these strengths, Australia can position itself as a leader in these industries through the strategic application of AI.
Enhancing AI skills and training
To prepare the workforce for an AI-driven future, the government intends to promote AI literacy and create new approaches to skills development and retraining. This includes enabling workers to reskill throughout their careers, allowing them to transition into new AI-driven roles or adapt to changes brought about by automation. These efforts aim to ensure that workers remain competitive in a rapidly evolving job market.
Building Sovereign Capabilities and Infrastructure
Recognizing the importance of sovereignty in the AI domain, the government will evaluate the need for domestic capabilities and infrastructure to maximize the benefits of AI technologies. Additionally, the plan will address issues such as digital inclusion and the societal impact of AI on communities and workers. By doing so, the government aims to ensure that the adoption of AI aligns with the nation’s broader economic and social objectives.
Development and Timeline
The strategy’s development will involve extensive consultations with industry stakeholders, communities, and the general public. This collaborative approach seeks to incorporate diverse perspectives and ensure the plan’s relevance across multiple sectors. The Department of Industry, Science, and Resources will oversee the consultation process, which includes both targeted and public engagements.
The final strategy is slated for release in late 2025, following the federal election scheduled for the first half of the same year. However, some industry voices, including the Australian Information Industry Association (AIIA), have expressed concerns about the pace of development, arguing that a faster timeline is necessary to seize emerging opportunities in AI.
Motivation Behind the Initiative
Australia’s government aims to build on the country’s existing strengths in AI and promote an “Australian-first” approach to industry growth. The nation is home to approximately 650 AI companies, and foreign investors contributed AUD $7 billion to Australian AI technologies over the five years leading to 2023. According to Minister Husic, the plan seeks to harness local expertise to secure supply chains and fortify critical infrastructure.
“This initiative responds to business demands and delivers on our commitment to strengthening AI capabilities. By working closely with firms, communities, and workers, we aim to drive investment and innovation,” Husic stated.
Other Measures to Advance AI
In addition to the strategy, the government has committed AUD $1 billion under the National Reconstruction Fund for critical technologies. It has also allocated nearly AUD $500 million through the Research and Development Tax Incentive for AI, computer vision, and machine learning projects from 2022 to 2023.
To support small and medium-sized enterprises (SMEs), a network of “AI Adopt” centers has been established to provide guidance on adopting AI within their operations. The National AI Centre has also launched a micro-course, “Introduction to Artificial Intelligence,” through TAFE NSW to promote foundational AI literacy.
Challenges and Criticisms
While these initiatives are steps in the right direction, some critics argue that Australia remains a slow adopter of AI by global standards. The AIIA has attributed this lag to regulatory concerns and societal apprehension about AI. Nevertheless, the government’s strategy aims to address these issues by fostering innovation and ensuring the ethical and inclusive deployment of AI technologies.
With its national AI strategy, Australia aspires to leverage the transformative potential of AI to drive economic growth, enhance global competitiveness, and secure a prosperous future for its citizens.
