This opinion article by Business Council of Australia Chief Executive Bran Black was published on Capital Brief on 3 June 2025.
Australia possesses many of the essential ingredients to become an AI leader and we must seize the opportunity, otherwise we risk being left behind the rest of the world.
One narrative that dominates many conversations around AI in Australia is that we are most likely to be a passive recipient of global technology. An “AI taker” rather than “maker”, as UK policymakers have termed the distinction.
But this pessimistic assumption fundamentally discounts some of our greatest national advantages when it comes to the application of new technology.
It’s not often talked about locally, but in global boardrooms Australia has long been seen as a fertile ground for new technologies. Payments technology is but one example, where for years Australia was leaps ahead of our larger peers. We are good at grasping new innovations, and we can do so with AI too.
We need national courage and vision to act decisively to seize that opportunity.
We are home to world-class research institutions producing breakthrough discoveries in machine learning, robotics, quantum computing, and biotechnologies. These institutions, and their connections with the business sector, are a critical foundation.
Just as importantly, we possess the economic stability, strong regulatory frameworks and democratic institutions that global partners look for in a trusted AI collaborator.
These are the conditions that make countries safe and attractive destinations for investment in cutting-edge technology. As long as we don’t undermine them by pushing regulatory burdens too far in an EU-style model, they will be a net attractor of AI activity.
We are also ideally placed to become a regional hub for AI infrastructure. Australia can host world-class data centres powered by renewable energy, helping global and local organisations train models securely and sustainably.
With investment, these facilities can also serve as the backbone for sovereign AI capabilities, supporting industries from mining and agriculture to healthcare and advanced manufacturing.
But leadership in AI isn’t just about hardware and infrastructure. It’s about people, talent and application.
Australia has a deep but narrow well of digital expertise. We could be 370,000 digitally enabled workers short by 2026. But with the right focus on skills development, we can grow that talent base rapidly.
Recent national initiatives to boost STEM education and increase digital apprenticeships are steps in the right direction.
But we need a coordinated, long-term effort with major businesses in a leading role to build the AI-literate workforce of the future. About 90% of big businesses team up with universities and VET providers for workplace learning, but only around 30% of smaller companies do. This is something we should be incentivising more.
Equally, we must put the incentives and safeguards in place that create a thriving ecosystem of AI application — where startups, SMEs, researchers and large businesses are all able to solve real-world problems.
Australia is already demonstrating leadership here. From AI systems that improve crop yields and detect bushfires early, to prediction of demand that speeds up supply chains, and tools that assist doctors in diagnosing diseases faster and more accurately, we’re seeing how homegrown innovation can have global impact.
To make these advantages matter, we need to make sure that our policy settings are genuinely focused on opportunity, not fear. We’ve been managing risks and opportunities since the discovery of fire, and we can do so here too.
That means embracing smart regulation that supports safe and responsible AI development, gives certainty for AI investments, and allows innovation to thrive. It also means ensuring open access to key datasets, funding high-impact research and promoting digital infrastructure as a core part of our national economic strategy.
We have many of the building blocks in place, with enthusiastic and willing business and research communities willing to help, and much of the consultation and thinking on AI regulation and capacity-building already undertaken. What Australia needs now are hard and fast decisions to let everyone get on with it.
AI is not a distant future. It is already transforming the way we live and work. The challenge before us is to choose the path of ambition. To be not only users of AI, but creators and leaders in its responsible development.
The question isn’t whether Australia will be left behind in the AI revolution — it’s whether we’ll have the courage to lead it.