The BGA Australia team, led by Managing Director Michael “Mick” McNeill, and Senior Director for Technology William Heidlage wrote an update to clients on Australia’s National Artificial Intelligence (AI) Plan.

Context

  • The government has announced a broadly pro-industry National Artificial Intelligence (AI) Plan aimed at attracting investment and promoting innovation while spreading economic opportunity and protecting the community. Although the government has stepped back from mandating AI guardrails in high-risk settings, it will take a somewhat interventionist approach to ensure “no one is held back and no one is left behind” as AI technologies become widespread. The plan is linked to the government’s Future Made in Australia agenda. Unions will be regularly consulted, and an AI Safety Institute will inform legislators. The government wants Australia to be a leading destination for data center investment in the Indo-Pacific.

Significance

  • The National AI Plan is closely aligned with the Future Made in Australia agenda by building sovereign capability in AI, supporting local innovation and fostering economic resilience. The plan is anchored in three goals: capturing investment, supporting local capability and expanding high-speed connectivity (for example by upgrading the government-owned National Broadband Network); spreading benefits including building digital skills and improving public services; and keeping Australians safe by reviewing and adapting laws and establishing an AI Safety Institute. The plan’s development was led by the Department of Industry. It was launched by Minister for Industry, Innovation and Science Tim Ayers and Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton.
  • The plan seeks to coordinate action with unions, businesses and civil society to ensure that the benefits of AI are equitably distributed across Australian society. The Business Council of Australia, while acknowledging that the plan was an important step, warned that regulating AI in the workplace threatened potential benefits for the broader economy and workers. “Australia already has comprehensive workplace, privacy, anti-discrimination and safety laws that provide world-leading safeguards,” a council spokesperson said. Unions have called for mandatory, enforceable agreements that would compel employers to consult their staff before new AI technologies can be introduced into workplaces and the creation of a National AI Authority and a national Artificial Intelligence Act.
  • The government will launch an “AI Accelerator” funding round of the Cooperative Research Centers (CRC) program to accelerate the development and commercialization of AI by businesses and researchers in Australia. The Tech Council of Australia welcomed this, noting that “commercialization has been a key inhibitor for Australia, which is why we welcome the investment in CRCs to ensure there is more cooperation and investment between research centers and industry.”

Implications

  • The plan emphasizes Australia’s potential as a leading destination for data center investment. Australia attracted around AUD 10 billion (US$6.6 billion) in data center investment in 2024, making it the second-largest destination globally that year for this asset class after the United States. The government is developing a set of national data center principles in partnership with the states and territories, which will set expectations for renewable energy efficient cooling technologies. Australia is connected to the global internet primarily through 15 international submarine cables. The country plays an important role in connecting other states in the Indo-Pacific to the international network.
  • The plan aims to make Australia the partner of choice on trusted critical digital infrastructure in the Indo-Pacific. The Department of Foreign Affairs and Trade, with the Department of Industry, Science and Resources, will lead on developing an Australian Government Strategy for International Engagement and Regional Leadership on Artificial Intelligence. The plan notes that Australia’s access to advanced chips is vital for AI development.

We will continue to keep you updated on developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com or BGA Senior Director for Technology William Heidlage at wheidlage@bowergroupasia.com.

Best regards,

BGA Australia Team

A small ginko leaf

Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More