Govt puts Microsoft in AI ‘driver’s seat’ ahead of locals


Joseph Brookes
Senior Reporter

The Prime Minister’s announcement that he was handing Microsoft a government trial of its generative artificial intelligence just hours before consultations with local industry on the technology has triggered surprise and disappointment among local suppliers.

The six month trial will cost $1.2 million and was made under the government’s existing procurement arrangements with Microsoft, without an approach to the market.

The government defended its decision on Friday, saying there will be “plenty of opportunities” for local businesses down the line, and denied the use of the US giant is linked to tightening of dual-use technology export controls.

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