The federal government will develop an artificial intelligence (AI) capabilities plan for Australia to figure out what support is needed and how it can be used to bolster the economy.
Industry and science minister Ed Husic announced on Monday that his department will consult with industry to develop a National AI Capability Plan. The final report is due by the end of 2025, although the timing means that the Albanese government may not live to see the result, with an election due in the next six months and Labor currently behind in the polls.
But his department’s tardiness in responding to existing work means action from its findings could be as far off as 2027. It’s now 10 months since the Diversity in STEM review, chaired by Cicada Innovations CEO Sally-Ann Williams, was handed to the government in February and Husic’s department has yet to respond.
Australian Information Industry Association (AIIA) CEO Simon Bush welcomed news of the plan amid slow adoption of AI nationally, but was concerned that the government’s response would likely arrive after the 2026 budget cycle, meaning investment wouldn’t arrive until 2027, which is “simply too long to wait in the fast-moving AI landscape.”
Bush would prefer to see the report handed down by the end of this financial year so the policy setting can be put in place sooner as Australia plays catch-up with the rest of the world.
The National AI Capability Plan will be designed to grow both public and private investment in AI, explore comparative advantage in sectors such as agriculture, mining and renewable energy, as well as identifying research and innovation strengths in universities and business, boost AI skills and ensure economic resilience.
Husic said the Plan builds on the government’s existing efforts work, including AI Adopt centres to upskill small-medium businesses and initiatives by the National AI Centre, such as the micro skill course ‘Introduction to Artificial Intelligence’ delivered through TAFE NSW.
Earlier this year the government released the first version of the Voluntary AI Safety Standard and proposed mandatory guardrails on using AI in high-risk settings.
While venture capitalists poured more than $2 billion into Australian AI applications last year, foreign investors contributed $7 billion to Australian AI technologies in the five years to 2023. The country is now home to around 650 AI companies.
Meanwhile, the R&D Tax Incentive supported nearly $500 million worth of AI, computer vision and machine learning projects in the 2022-23 financial year, and the National Reconstruction Fund has $1 billion earmarked towards critical technologies.
Minister Husic said the government is responding to business calls for the plan
“We need to scale up our capabilities in critical technologies in ways that work for businesses and their workers,” he said.
“This plan will look to harness our AI know-how to secure our supply chains and strengthen our critical infrastructure. We will work closely with firms, and with communities and workers, to drive investment in our AI capabilities.”
AI and automation is estimated to contribute up to $600 billion annually to Australia’s gross domestic product (GDP) by 2030.
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