Invest or lose: Australia’s billion-dollar AI warning
Australia could miss out on a $150 billion boost to its economy if it doesn’t invest in AI, including independent AI models, regional centres, education and infrastructure.
But one study found that determined investments in technology could generate an additional $235 billion over a decade and help the country catch up with the rest of the world.
The Australian Academy of Technological Sciences and Engineering and consultancy Kearney on Friday published warnings from research modeling three AI investment and policy scenarios.
The findings come as the industry expects the federal government’s national AI plan to be published before the end of 2025, and federal Treasurer Jim Chalmers announced AI would become a national priority.
The study, Unleashing Growth: Australia’s AI Investment Plan, analyzed investments in AI technology from around the world.
The report found that other nations’ spending on AI is on track to exceed $3 trillion by 2026, with the national average being $13.8 billion over five years.
By comparison, Australia had invested more than $300 million in that period; This was much less than its closest rivals Canada ($1.7 billion), the United Kingdom ($2 billion), Germany ($3.4 billion) and Singapore ($4.4 billion).
Academy president Katherine Woodthorpe said AI could boost productivity and efficiency in fields ranging from agriculture to weather forecasting, but Australia would miss out on its benefits if it did not increase its investment.
“Other countries are not waiting, and if we do not act decisively Australia risks being left behind,” Dr Woodthorpe said.
“AI is a tool that Australian businesses can turn into real productivity gains over the next 10 years, but only if we manage to train enough people, build out the data centres, and build the critical ecosystem of technology standards and regulations.”
The study modeled three scenarios in Australia and found limited government action would deliver an $85 million increase in gross domestic product by 2034, while current investment levels would increase this by up to $190 million.
A $5 billion government investment and further support over five years could unlock an economic boost of up to $235 billion, representing 8 percent growth, the report said.
UNSW Artificial Intelligence Institute director Sue Keay said the investment would be needed to develop Australia’s supercomputing facilities and fund the training of the next generation of technology workers.
“We often hear the suggestion that Australia is too small and that Australia cannot invest enough money to take advantage of the capabilities and technologies we are currently developing here,” he said.
“This paper and supporting economic modeling challenges the suggestion that Australia is helpless in this area and that we should rely on purchasing off-the-shelf AI to help our productivity.”
Dr Keay said that the development of domestic artificial intelligence models will also eliminate the brain drain in the sector and provide investment confidence.
The report also recommended national AI training, purpose-built computing facilities, standards and regulations, and regional AI centers.
