Australia's AI Infrastructure Lag

Australia risks falling behind in the AI race due to a lack of sufficient infrastructure for running advanced AI models. This infrastructure is crucial for transforming raw data into valuable predictions, analysis, automation, and discoveries. Without targeted policy action to boost sovereign compute investment and remove adoption barriers, Australia risks missing out on becoming a regional AI hub. Australia currently plays a minor role as it primarily consumes AI, relying on overseas infrastructure. The country's political stability, rule of law, alliances, and renewable energy potential position it to become a trusted global hub for AI computing infrastructure.

Treasurer Jim Chalmers acknowledged the AI revolution's impact on the economy. AI systems are predicted to match human cognitive performance within two years, potentially causing a wealth transfer from AI takers to AI makers. Hosting critical AI infrastructure could give Australia strategic leverage in influencing AI safety and global governance. Amazon Web Services (AWS) is investing AU$20 billion to expand data centre infrastructure in Australia by 2029, including renewable energy projects. This investment aims to position Australia as a global AI development leader.

The Department of Industry, Science and Resources estimates that AI and automation could contribute AU$600 billion annually to Australia's GDP by 2030. The investment includes three new solar farms across Victoria and Queensland to power the expanded infrastructure. AWS has trained over 400,000 people in Australia since 2017 to develop digital skills and will continue to support generative AI programs.