The Australian Government has announced plans to develop a National AI Capability Plan, aimed at boosting Australia’s artificial intelligence (AI) capabilities, promoting economic growth, and enhancing productivity.
The National AI Capability Plan will focus on four key areas: investment growth, capability strengthening, skill development, and economic resilience, the government said in a news release.
It aims to review government support mechanisms, identify opportunities for private sector innovation, and bolster AI research across universities and businesses.
Special emphasis will be placed on sectors where Australia has comparative advantages, such as agriculture, mining, and renewable energy.
“Growing investment in the AI will supercharge industry and create more well-paid jobs,”Minister for Industry and Science Ed Husic said.
“We need to scale up our capabilities in critical technologies, in ways that work for businesses and their workers.”
The government reported that Australia’s AI sector is already gaining momentum, with approximately 650 AI companies headquartered in the country.
Foreign investors contributed $7 billion to Australian AI technologies in the five years leading to 2023, and in 2023 alone, $2 billion in venture capital was poured into AI applications.
Projections suggest that AI and automation could contribute up to $600 billion annually to Australia’s GDP by 2030.
“This plan will look to harness our AI know-how to secure our supply chains and strengthen our critical infrastructure,” Husic stated.
“This is something business is calling for and we’re delivering.”
The plan also highlights the need to accelerate AI literacy and reskill workers to adapt to evolving job markets.
It will explore ways to ensure AI technologies work inclusively, informed by the experiences and rights of communities and workers.
Sovereign capabilities and infrastructure required to maximize AI’s potential for Australia will also be assessed.
“We will work closely with firms, and with communities and workers, to drive investment in our AI capabilities,” Minister Husic added.
The government has already made significant investments in critical technologies, including a $1 billion commitment under the National Reconstruction Fund.
Additionally, the Research and Development Tax Incentive supported nearly $500 million in AI, computer vision, and machine learning projects in 2022–23.
Building on existing initiatives, the plan will align with measures like the AI Adopt Centres network to upskill small and medium enterprises (SMEs) and the micro-skills course “Introduction to Artificial Intelligence” offered by TAFE NSW.
It also complements safety and responsibility efforts, such as proposed mandatory guardrails for AI use in high-risk settings and the recently introduced Voluntary AI Safety Standard.
The National AI Capability Plan is expected to be delivered by late 2025.
