Australia's AI Future: A Call to Action for Innovation and Growth
Australia is at a critical juncture in the global AI race. While local startups and innovators are creating groundbreaking technologies, the nation lags behind global leaders in AI investment and policy support. To secure its place on the world stage, Australia must take decisive action to foster innovation, nurture its AI startups, and become a hub for ethical, practical AI solutions.
Global AI Investment Comparison
| Country | AI Investment (AUD) | AI Investment as % of GDP |
|---|---|---|
| Australia | $200 million | 0.01% |
| Thailand | $300 million | 0.02% |
| South Korea | $1.1 billion | 0.05% |
| United Kingdom | $6 billion | 0.10% |
| China | $32 billion | 0.18% |
| United States | $50 billion | 0.24% |
Sources: OECD reports, AI R&D public announcements, government releases
The Current State of AI Investment in Australia
Australia's AI investment trails far behind its global peers. Despite increased funding throughout 2024, the country's AI R&D spending remains modest compared to nations like the United States, South Korea, and emerging players like Thailand. This underinvestment risks leaving Australia reliant on imported technologies, ceding control over its data sovereignty and missing the chance to shape global AI standards. Without bold action, the country faces the loss of top talent to better-funded ecosystems and challenges in scaling local startups to compete internationally.
Key Statistics
- Australia: AUD $200 million in AI investment in 2024, accounting for just 0.01% of GDP.
- United States: AUD $50 billion annually, driven by a combination of government initiatives and private-sector investments (0.24% of GDP).
- China: AUD $32 billion, with significant state-led funding and infrastructure development (0.18% of GDP).
- United Kingdom: AUD $6 billion, bolstered by academic partnerships and private-sector collaboration (0.10% of GDP).
- South Korea: AUD $1.1 billion invested in its National AI Strategy (0.05% of GDP).
- Thailand: AUD $300 million, emerging as a key Southeast Asian hub for public-private AI partnerships (0.02% of GDP).
Bright Spots in Australia
Selode.AI
One of Australia's most transformative AI innovations, the Selode Mother Box, is the world's first on-premise and scalable AI device for small and medium-sized businesses. It delivers enterprise-grade AI tools—such as a document chatbot, audio transcription, and interactive spreadsheet analysis—all without relying on cloud services.
Other Notable Startups
- Fleet Space Technologies: This Adelaide-based startup leverages AI-driven satellite solutions to improve mineral exploration and resource management. Valued at AUD $800 million, it has attracted global attention for its sustainability-focused technology.
- Harrison.ai: Focused on healthcare AI, Harrison.ai develops diagnostic tools that enhance accuracy and patient outcomes. Already used in hospitals across Australia, the company exemplifies how AI can revolutionise critical industries.
- Presien: A Sydney-based firm using AI-powered computer vision to improve safety and efficiency in construction and industrial environments. Its solutions are reshaping workplace productivity in high-risk sectors.
- Rich Data Co: Specialising in financial AI, this startup raised AUD $37 million in 2024 to expand its predictive analytics platform, empowering financial institutions to make smarter decisions.
- GeoMoby: Focused on location-based AI, GeoMoby provides real-time geofencing solutions for industries like mining and transport, improving safety and operational efficiency.
What Australia Needs to Do Next
- Increase R&D Investment
Boosting AI R&D spending to at least AUD $1 billion annually would align Australia with countries like South Korea and the UK, creating a robust foundation for innovation. - Expand Public-Private Collaboration
Encourage partnerships between government, industry, and academia to fund AI startups, facilitate research, and accelerate commercialisation. Programs incentivising Australian-made AI solutions would stimulate local demand. - Develop STEM and AI Talent
Address the talent gap by promoting STEM education and creating AI-focused training initiatives. Scholarships, apprenticeships, and retraining programs can ensure a skilled workforce. - Establish Transparent Regulations
Implement supportive AI policies that balance innovation with ethical standards. A clear regulatory framework will provide startups with the confidence to innovate responsibly. - Invest in AI Infrastructure
Create renewable-powered data centres and AI processing hubs to meet computational demands sustainably. This would position Australia as a leader in eco-friendly AI development.
A Promising Future for Australian AI
While Australia's AI sector faces challenges, the success of innovative startups like Selode.AI, Fleet Space Technologies, and Harrison.ai demonstrates what is possible. With the right investment, policies, and infrastructure, Australia can become a global hub for ethical, secure, and practical AI solutions.
AI holds immense potential to transform industries, create jobs, and drive economic growth. By supporting its brightest innovators and fostering an environment where startups can scale globally, Australia can ensure it participates in and helps lead the AI revolution. The future of Australian AI is bright—now is the time to make it a reality.