While large technology companies and global economies are investing billions of dollars into data centres, Australia has only committed to developing a National AI Capability Plan by the end of 2025. This paper argues that Australia is at a critical junction, as it seeks to keep pace with the rapidly evolving global AI landscape.  

Key points

• Australia faces a severe lack of AI expertise, with the talent gap projected to double to 40,000 in 2027, which is slowing down adoption and implementation.
• Significant infrastructure investment is needed to prepare for future AI demand, enable data sovereignty in line with privacy legislation and regulatory requirements, and support the transition to sustainable energy.
• Investment in whole-of-society AI literacy is a critical enabler for the age of AI, requiring education across schools, the workforce and broader society.
• The business case for launching an AI initiative should consider both upfront and ongoing costs, including financial outlays, time and staff needed, and risk controls required to ensure system resilience.