Australia chases AI industry growth via new national capability plan

Australia’s government will be developing a National AI Capability Plan to investigate how it can grow the country’s artificial intelligence industry amid calls for Australia to boost its competitiveness in the fast-growing industry.

In a Dec. 16 statement, Ed Husic, the Minister for Industry and Science, said the plan would review ways to strengthen the country’s AI ecosystem through upskilling the workforce, inviting investment, and fostering innovation. 

“This plan will look to harness our AI know-how to secure our supply chains and strengthen our critical infrastructure,” he said. 

“We will work closely with firms, and with communities and workers, to drive investment in our AI capabilities,” Husic added, 

According to Husic, as part of the review, the government agency will examine current state and federal support mechanisms and whether they help or hinder Australia’s AI industry. 

The review will also look at ways to increase AI literacy and upskill the local workforce through training and re-training. At the same time, Husic says there will be a focus on identifying areas of research and innovation across universities and businesses. 

According to the Australian Government Department of Industry, Science and Resources, the country has roughly 650 AI companies at the moment. AI and automation are forecast to generate hundreds of billions annually toward Australia’s GDP by 2030. 

The National AI Capability Plan is due toward the end of 2025, following a targeted and public consultation period.

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However, some argue the timelines are too long for the fast-growing industry, which could reach $826 billion globally by 2030, per Statista.

Simon Bush, CEO of the Australian Information Industry Association (AIIA), Australia’s peak body representing the communication and technology industry, said a National AI Capability Plan is a step in the right direction, but the timeline should be sped up. 

In a Dec. 16 statement, Bush says the deadline for the review should be July 2025 because, with the current one, funding would likely take until at least 2027 to come through, which he says is too “long to wait in the fast-moving AI landscape.”

“Australia has been a slow adopter of AI across its economy by global standards due to adoption concerns and fears,” he said. 

“Australia requires a balanced approach to both ensuring AI regulation and guardrails protect citizens but also having industry policy that supports AI innovation, investment and adoption,” Bush added. 

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