Leaning into the Aussie advantage
The emergence of DeepSeek has shown that developing cutting edge technology can be done faster and cheaper than previously thought. And it doesn’t just have to come out of the U.S.
This should be a rallying cry for Australia.
But rather than trying to emulate what’s already out there, we should lean into our own advantages. As a country we have a deep set of inherent characteristics that could underpin and support our own uniquely Aussie AI development, something Ed Husic, Science and Industry Minister has previously opined on.
The view from Australia’s new Chief Scientist
This is not a new idea, but a concept gathering momentum.
In the words of Australia’s newly appointed Chief Scientist, Tony Haymet:
“Australia has stellar expertise and clever ideas in many sectors – medical technology, astronomy, quantum physics, minerals technologies and many others. We must always include Australia’s inventive farming technologies in this list. We are slowly learning that the depth of knowledge held within Australia’s Aboriginal and Torres Strait Islander communities is an absolute strength and a national asset. AI is clearly an excellent opportunity for Australia, both at home and as an export industry.”
Our local green shoots
Last year, the inaugural Australian AI Awards recognised an accumulation of Australian AI talent, showcasing the breadth of what this country has to offer in terms of innovation. In addition, and Canva’s acquisition of AI startup Lenoardo.AI for $120 million also proves the commercial value of our homegrown ingenuity.
Additional AI green shoots were recently revealed by researchers Cut Through Venture and venture capital firm Folklore Ventures’. Their State of Australian Start-up Funding report showcased that Aussie tech start-ups benefitted from $4 billion of venture capital funding in 2024. And here’s the important bit: a quarter of those funds went to companies building AI products.
This is both positive news for local AI innovation but also Australian tech in general as the $4 billion invested in 2024 was 11 per cent up, compared to last year. Something recently (and rightly so) celebrated in the pages of the AFR and beyond.
But are we still moving too slowly?
It’s clear, we have the tools to succeed at AI and we’re already seeing the benefits increased investment can have, in terms of innovation and sparking growth. However, many continue to accuse the government of moving too slowly.
For example, the Australian Information Industry Association (AIIA) warned this month that Australia is fast becoming “a global laggard” in AI adoption. Ahead of the Federal Budget, the AIIA has called for policies to improve AI adoption across the economy and increased investment in AI-related research and skills.
The AIIA isn’t alone in urging the government to do more. The Tech Council has also been vocal on the issue of Australia’s AI competitiveness.
All eyes on the Federal Budget
Looking ahead to the Federal Budget, all eyes (including ours) will be on what the government has planned regarding AI, especially following unveiling of the National AI Capability Plan back in December. Will we further leverage that ‘stellar expertise’?
That remains to be seen, until then, watch this space.