Accelerating Australia's AI Agenda
Leadership for a Better Future
Artificial intelligence is no longer a distant possibility - it’s here, reshaping industries, economies, and societies worldwide. The real question isn’t whether AI will transform Australia’s future, but how Australia will choose to lead in this era of rapid technological change.
The Business Council of Australia (BCA) has laid out a bold vision to position Australia as a global AI leader by 2028, calling for decisive action in six key areas: adoption, skills, regulation, infrastructure, data, and R&D & innovation. These recommendations aren’t just about technology - they’re about leadership. They challenge business executives, policymakers, and industry leaders to step up, take ownership, and create a future where AI drives productivity, innovation, and prosperity.
Why AI? Why Now?
Australia stands at an inflection point. The BCA’s report highlights a stark reality: our national productivity growth has slowed, and we risk falling behind in the global AI race. AI offers a path forward, but only if we act now.
“With this much opportunity at stake, we must seize it with urgency as a national priority.”
Other countries have already embraced AI as a strategic priority. The United States, United Kingdom, Singapore, and China are making massive investments, implementing AI-driven policies, and setting global standards. If Australia hesitates, we risk becoming mere consumers of AI technology, relying on foreign innovations rather than driving our own.
AI as the New Electricity
AI is not just another technological trend. It’s a general-purpose technology - like electricity, mechanisation, or computing - that will reshape every industry, every business model, and every job. AI is already helping doctors diagnose diseases, enhancing safety in heavy industries, personalising education, and optimising resource management.
“AI will underpin our economy and quality of life in the same way as electricity - an essential, seamlessly integrated force empowering how we live and work.”
Australia must embrace AI adoption aggressively, not just in tech companies but across government, healthcare, manufacturing, and education. And most importantly, we must lead with purpose, responsibility, and vision.
Six Pillars of Action: What Must Change?
The BCA’s roadmap identifies six areas where Australia must take action to secure its place as an AI-driven economy.
1. AI Adoption: Leading by Example
Governments must do more than regulate AI - they must use it. Public sector adoption of AI will build trust, set industry benchmarks, and accelerate national productivity.
The BCA recommends:
✅ Using AI in public services to improve efficiency in healthcare, education, and regulatory compliance.
✅ Removing bureaucratic barriers preventing AI adoption in government agencies.
✅ Appointing Chief AI Officers (CAIOs) to drive AI strategy across departments.
“Government must lead by example - implementing AI across services, setting best practices, and accelerating innovation.”
Businesses should watch how AI transforms government - because the same automation, data-driven decision-making, and AI-enhanced workflows can revolutionise their own organisations.
2. AI Skills: A National Workforce Strategy
Australia doesn’t just need AI developers - it needs AI-literate leaders, managers, and employees across every industry.
“The most sophisticated AI system is useless without people who know how to build, deploy, manage, and work alongside it.”
The BCA calls for:
✅ A National AI Skills Compact to align training with industry needs.
✅ AI apprenticeships and microcredentials to fast-track skills development.
✅ Embedding AI literacy across primary, secondary, and tertiary education.
AI won’t replace jobs - it will redefine them. Smart leaders will focus on reskilling their teams, integrating AI into workflows, and creating future-ready organisations.
3. AI Regulation: Smart Rules, Not Red Tape
The EU’s heavy-handed AI regulations have slowed adoption, forcing businesses to delay AI-driven innovations. Australia must avoid over-regulating AI at the expense of progress.
“We must avoid strangling the very innovation we seek to foster.”
The BCA recommends:
✅ A risk-based regulatory framework - targeting high-risk AI applications (e.g., healthcare, critical infrastructure).
✅ Establishing the Australian AI Safety Institute (AAISI) to ensure AI models meet ethical standards.
✅ Avoiding broad, restrictive rules that stifle innovation.
Effective regulation builds trust without crippling innovation. The question is: How do we balance AI safety with economic growth?
4. Infrastructure: Building Australia’s AI Backbone
Australia must accelerate data centre expansion and cut red tape to support AI-driven industries. The BCA warns that planning approvals are too slow, limiting our ability to develop large-scale AI infrastructure.
The report highlights:
✅ Simplifying data centre development to meet growing AI demand.
✅ Investing in renewable-powered AI infrastructure to reduce environmental impact.
✅ Positioning Australia as an AI hub for the Asia-Pacific region.
“Speed-to-build is a critical determinate of where AI investment is going.”
Australia has land, political stability, and renewable energy - we just need faster approvals and investment.
5. Data: Unlocking AI’s Full Potential
Without high-quality, accessible data, AI cannot drive meaningful change. Australia ranks among the worst in the OECD for data accessibility.
The BCA proposes:
✅ Establishing the Australian National Data Library (ANDL) to make government datasets more accessible.
✅ Expanding data-sharing frameworks between businesses, researchers, and public institutions.
✅ Reforming copyright laws to enable AI training on Australian data.
“Curating high-quality, diverse, and representative Australian datasets can become a significant competitive advantage.”
AI is only as good as the data we give it - Australia must make better use of its data resources.
6. R&D & Innovation: Creating AI Leaders, Not Followers
Australia has world-class researchers, but struggles to translate breakthroughs into commercial success.
The BCA recommends:
✅ Creating an AI Research Consortium (AIRC) to bridge academic research with industry applications.
✅ Modernising Australia’s R&D tax incentives to encourage AI innovation.
✅ Establishing an AI Commercialisation Accelerator (AICA) to scale AI-driven businesses.
“Australia must focus on moving from research to execution, ensuring AI innovation leads to real-world economic impact.”
Strong R&D investment ensures Australia isn’t just buying AI - it’s building it.
Leading Australia's AI Future: The Call for Bold Leadership
Australia’s AI future is not preordained - it will be shaped by the decisions leaders make today. The Business Council of Australia's report presents a clear and achievable vision, but vision alone is not enough. It requires action, commitment, and leadership at every level - government, business, academia, and industry.
The most successful AI economies aren’t simply those with the best technology - they’re the ones with the boldest leadership, the most adaptable policies, and the strongest investment in skills and infrastructure. Australia has the raw ingredients to compete on the global AI stage, but execution is what will define whether we lead or lag.
“Australia should rapidly identify high-impact innovations from abroad and adapt them to local conditions. By becoming world-class in how innovation is adopted and adapted, Australia can punch above its weight economically and geopolitically.”
Final Thought: The Cost of Inaction
Australia does not have the luxury of waiting for AI adoption to happen organically. Other nations are moving aggressively, and every year of delay pushes Australia further behind.
📌 If we hesitate, we will be forced to rely on AI developed elsewhere.
📌 If we over-regulate, we will stifle the very innovation we need.
📌 If we fail to invest, we will miss the biggest economic opportunity of our time.
Australia can choose to lead, or it can follow. The question isn’t whether AI will shape our future - it’s whether our leaders will shape AI’s future.
