Australia is taking significant steps to enhance its presence in the global artificial intelligence (AI) industry with the development of a National AI Capability Plan. The plan, announced by Ed Husic, the Minister for Industry and Science, will focus on expanding the country’s AI ecosystem. This includes strategies to upskill the local workforce, attract investment, and foster innovation across various sectors. By harnessing the country’s AI expertise, the government aims to secure supply chains and strengthen critical infrastructure, ensuring Australia can effectively compete in the fast-evolving AI landscape.
A key aspect of the plan will involve a comprehensive review of existing support mechanisms at both the state and federal levels. This review will assess whether current policies are enabling the growth of the AI industry or if adjustments are needed to better support innovation and research. The government will also look at ways to increase AI literacy among the workforce, ensuring that Australians are equipped with the necessary skills to contribute to and benefit from AI advancements.
Australia’s AI industry is already home to around 650 AI companies, and AI and automation are projected to generate significant economic value, potentially contributing hundreds of billions of dollars to the country’s GDP by 2030. The National AI Capability Plan is expected to provide a roadmap for realizing these opportunities while supporting innovation within universities and businesses. A targeted public consultation period will also play a role in shaping the direction of the plan, which is set to be finalized by the end of 2025.
However, some industry leaders are concerned about the plan’s timeline, arguing that it may be too slow for such a rapidly developing field. Simon Bush, CEO of the Australian Information Industry Association, has called for the review deadline to be brought forward to July 2025. Bush emphasized that the current timeline may delay funding and implementation until 2027, which could hinder Australia’s ability to keep pace with global AI developments. As the world’s AI market is expected to grow to $826 billion by 2030, speeding up the process could help Australia maintain a competitive edge in this critical area.
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