Australia has announced plans to develop a national AI strategy to strengthen its AI capabilities and attract investment, aiming to unlock the economic productivity potential of these technologies. The strategy will focus on building AI skills, sovereign capabilities, and infrastructure, positioning Australia to seize the $600 billion boost to GDP that the government expects AI will deliver by 2030.
Set to be developed in consultation with industry, the AI plan is expected to be released in late 2025 — after the next federal election, which is scheduled for the year’s first half.
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Australia’s Federal Minister for Industry and Science, Ed Husic, emphasized the plan’s role in driving AI investment, supercharging industries and creating well-paid jobs nationwide.
“We need to scale up our capabilities in critical technologies in ways that work for businesses and their workers,” Husic said in a statement announcing the new AI plan.
What will be contained in Australia’s new AI capability plan?
The AI plan aims to develop a comprehensive strategy focusing on AI investment, existing strengths and advantages, skills development, and sovereign infrastructure and capabilities.
Australia wants to grow AI investment
The government plans to review how existing Australian state and federal government support mechanisms work together to hinder or enable Australia’s AI technology ecosystem. It will also identify ways to boost private sector innovation and investment in AI capabilities.
A focus on strengthening AI capabilities
The plan will identify areas of research and innovation strength within Australia’s universities and businesses that can support the growth of the AI industry. Additionally, the government will explore new opportunities for comparative advantage across key sectors of the economy, including agriculture, mining, and renewable energy.
A strategy for AI skills and training
The government wants to accelerate AI literacy by identifying new skills and training and re-training approaches. Efforts will also focus on enabling workers to reskill throughout their careers, helping them seize opportunities in new AI-driven jobs or retrain as AI automates parts of existing roles.
Sovereign capabilities and infrastructure
The government will consider where sovereign capability or infrastructure may be required for Australia to maximize AI technologies. It will also consider opportunities and risks of AI and digital inclusion in Australia and how AI will impact communities and workers.
How will Australia’s new plan be developed and finalised?
Because AI will impact almost every industry, the government has said the strategy will be developed in consultation with various stakeholders — both in industry and the general public. As a result, the government will undertake both a targeted and public consultation period before finalising the plan. Australia’s Department of Industry, Science and Resources will conduct the process.
When will the AI capability plan be finalised?
The plan will not be released until late 2025. Given the fast pace of AI development, the Australian Information Industry Association declared this pace too slow to seize new AI opportunities. It argued that the government should accelerate its timetable. A federal election will take place during this period, which could impact the process if there is a change in government.
Why has Australia embarked on the creation of an AI Capability Plan?
The Australian Government has outlined its intention to build on the country’s existing comparative advantages in AI, emphasizing an “Australian-first” approach to grow the local AI industry for the future.
In announcing the plan, the government highlighted that around 650 AI companies are already headquartered in Australia. Data released by the government indicates that, in the five years leading up to 2023, foreign investors contributed AUD $7 billion to Australian AI technologies.
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“This plan will look to harness our AI know-how to secure our supply chains and strengthen our critical infrastructure,” Husic said. “This is something business is calling for and we’re delivering. We will work closely with firms, and with communities and workers, to drive investment in our AI capabilities.”
What else is Australia doing to enhance its AI prospects?
The government has been criticised for focusing on regulation and guardrails to protect citizens from AI, rather than supporting AI innovation, investment, and adoption. The AIIA called Australia a “slow adopter of AI across its economy by global standards,” due what it called “concerns and fears” with the technology.
However, the government pointed out AUD $1 billion has been committed for critical technologies under the National Reconstruction Fund, while the Research and Development Tax Incentive supported nearly AUD $500 million worth of AI, computer vision, and machine learning projects from 2022 to 2023.
The government has also established network of “AI Adopt” centres to upskill SMEs who want to understand and adopt AI within their businesses. The National AI Centre has also released a micro skill course, “Introduction to Artificial Intelligence,” delivered through TAFE NSW.
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