The Australian government has announced the development of a National AI Capability Plan aimed at accelerating investment and innovation in artificial intelligence (AI) technologies. Minister for Industry and Science Ed Husic revealed the initiative on December 16, 2024, emphasizing the plan’s role in driving economic and productivity growth.

The plan, a first for Australia, will explore strategies to enhance the nation’s AI capabilities in response to the rapidly growing global AI industry. Projections estimate that AI and automation could contribute up to $600 billion annually to Australia’s GDP by 2030.

Australia is already home to around 650 AI companies, with significant foreign investment supporting the sector. Between 2018 and 2023, foreign investors poured $7 billion into Australian AI technologies, including $2 billion in venture capital in 2023 alone. The Albanese government is determined to build on this momentum and capitalize on the nation’s comparative advantages in AI.

The plan will examine how existing federal and state government support mechanisms enable or hinder the AI ecosystem and identify ways to increase private sector innovation and investment. It will also highlight research and innovation strengths across universities and businesses while exploring growth areas in sectors such as agriculture, mining, and renewable energy.

AI literacy will be another key focus, with efforts to introduce new training programs and reskilling opportunities to ensure workers can adapt to emerging AI-driven employment opportunities. Additionally, the plan will address the need for sovereign capabilities and infrastructure to maximize AI’s benefits, while considering risks related to digital inclusion and worker rights.

The National AI Capability Plan will complement ongoing government initiatives, including the $1 billion National Reconstruction Fund for critical technologies and the Research and Development Tax Incentive, which supported nearly $500 million worth of AI projects in 2022-23. Other efforts include the creation of AI Adoption Centres to support small and medium enterprises and a micro-skills course, "Introduction to Artificial Intelligence," delivered through TAFE NSW in collaboration with the National AI Centre.

The plan will involve consultations with industry leaders, workers, and communities to ensure the responsible adoption of AI technologies.