Imagine a future where Australia stands alongside other leaders in artificial intelligence, helping to shape the technology that’s changing our world. A future where we can use AI solutions designed and trained on Australian data for Australian needs, with Australian oversight.
Imagine a future where we can reduce our reliance on overseas technology and become a leader in technology exports, with regional partnerships helping us to be more resilient in a changing geopolitical landscape.
The foundation of this vision is threefold: people, business, and infrastructure. We need more skilled Australians in AI and machine learning. We need a healthy ecosystem of local businesses offering Australians opportunities to work on cutting-edge AI projects, supported by a robust infrastructure that can facilitate the creation of innovative, large-scale AI solutions.
It is true that now is the moment for state and federal governments to start backing the ingenuity of Australian businesses by co-investing in the infrastructure that will open the window of what is possible and underpin our nation’s AI ambitions.
But having sovereign technology isn’t just about hosting our data on local servers or using domestic infrastructure — it’s about cultivating the local expertise, talent and industry that drive innovation. By doing so, we can unlock the full potential of our research institutions, harness the expertise of our people, and create a secure and resilient data ecosystem that drives innovation.
The next federal government, in whatever form it takes, must provide targeted support to Australian businesses developing AI solutions and create an environment that encourages innovation, entrepreneurship, and investment in AI research and development.
This includes access to funding, tax incentives, and procurement policies that give local AI companies a fair go. By empowering these businesses, we can create a more level playing field and unlock opportunities for genuine and long-term economic growth.
In response to the recent federal Budget, the Australian Information Industry Association expressed concerns that the federal government had overlooked the potential benefits of investing in Australian-made AI solutions.
AIIA chief executive Simon Bush recently noted that while they support the government’s efforts to lay the groundwork for future reforms, the Budget has failed to keep pace with the accelerating global investment in AI, exacerbating Australia’s record-low productivity and widening the gap with the rest of the world.
Governments of like-minded countries such as Canada, South Korea and Singapore are investing heavily in AI development, recognising its critical role in driving innovation, economic growth, and competitiveness. Yet, Australia’s current approach and lack of real vision risks leaving local businesses at a disadvantage.
Beyond investment, the government can play a critical role in setting an example for other local businesses by trusting AI applications developed in Australia. By choosing homegrown solutions, the government can demonstrate its support for local innovation and talent, creating a demand for homegrown solutions that can inspire other organisations to do the same.
Another key priority for the government should be privacy. Using Australian-made AI solutions ensures that our sensitive information is kept onshore, which can help reduce the risk of data breaches by malicious actors overseas. This is particularly important for sensitive areas like defence, healthcare, and finance, where data security is paramount.
While it’s not feasible to rely solely on Australian-made technology, we must strike a balance between leveraging international expertise and protecting sensitive Australian data. We have a choice: either continue to rely on overseas technology, exposing ourselves to potential threats and vulnerabilities, or take charge and forge our own path, prioritising the Australian economy, sovereignty, and control over our digital destiny.
The benefits of sovereign AI, that is, AI that is not only hosted but also developed here, are clear. By investing in local AI capabilities, we can create high-skill jobs, drive technological innovation, and build a more resilient and adaptable economy.
But perhaps most importantly, by investing in sovereign AI, we can help preserve the things that make Australia unique and ensure that our digital future reflects our values and way of life.
Michael Gately is the co-founder and CEO of local AI company Trellis Data
Do you know more? Contact James Riley via Email.