Minister for Industry and Science Ed Husic has announced the Government’s plan to develop a National AI Capability Plan as part of the Government’s initiative to invest in local AI capability to boost the country’s strategic and economic competitiveness.
The plan will focus on growing investment in AI, strengthening AI capabilities, boosting skills, and securing economic resilience.
With the plan, the Government has recognised Artificial Intelligence as a crucial driver of Australia’s economic future, with AI and automation projected to contribute up to $600 billion annually to Australia’s GDP by 2030.
The Australian Information Industry Association (AIIA) has welcomed this pronouncement, with AIIA CEO Simon Bush commenting, “The development of a comprehensive National AI Capability Plan is a significant step forward to map out how Australia can move from AI laggard to AI leader. Australia has been a slow adopter of AI across its economy by global standards due to adoption concerns and fears.”
Bush added, “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. Australia currently lags behind many of our international competitors in AI adoption and implementation so this Plan is a crucial step in the right direction.”
AIIA stated that the plan aligns with the industry’s priorities for developing domestic AI capabilities and ensuring Australian workers and businesses can thrive in an AI-enabled economy.
“While we strongly support the Government’s recent work on AI guardrails and safety measures, we have consistently advocated for a parallel national strategy backed by targeted investment. I would encourage the Government to move as quickly as possible in the development of the Plan and move towards funding the implementation as a matter of priority,” Bush said.
With the review process scheduled to conclude at the end of 2025, AIIA forecasts that the government response would likely come after the 2026 budget cycle, which would mean that funding for the plan would not trickle in until at least the 2027 budget.
“This is simply too long to wait in the fast-moving AI landscape,” Bush commented. “We strongly urge the government to bring forward the review deadline to July 2025, allowing recommendations to be considered for the 2025-26 Mid-Year Economic and Fiscal Outlook.”
