Australia is on the cusp of a new economic revolution, this time powered by artificial intelligence (AI). Industry experts strongly contend that a much greater level of investment into AI development is needed for the country to leverage the technology’s tremendous economic potential. As I explained recently, prominent voices like Toby Walsh, David Ellis, and Dan Ives are sounding the alarm. They’re calling on the Government to stop Australia lagging behind other countries in this vital industry.
Toby Walsh, AI researcher and mathematician, urges Congress to move fast and increase investments significantly. He argues very convincingly that AI technology is developing at an incredible pace. Australia’s investment is lagging behind other countries. Without this funding, innovation is in real danger. This shortfall constrains our nation’s ability to realize the full benefits of AI.
The Economic Promise of AI
According to estimates, scaling up AI applications could add up to $60 billion to Australia’s gross domestic product (GDP) over the next decade. As Walsh puts it, this technology is “the greatest gold rush perhaps in the history of capitalism.” And he shares the growing concern that much of this AI-generated wealth is being concentrated in the hands of just a few, large North American companies. Second, this results in a deepening chasm between whoever has access to these burgeoning technologies and whoever doesn’t.
CRC’s David Ellis explains the real-world applications of AI. In particular, he suggests that we will soon be able to deploy hundreds of thousands of AI agents to perform highly specialized types of work. He goes into detail on how these agents can make operations more efficient. “Even a million AI entities,” such as chatbots or recommendation engines that can run in parallel, “could be at play to execute omnichannel, end-to-end process — the heavy lifting in the background,” he adds. Combined with other tools, this capability has the potential to radically increase productivity in nearly every sector.
Interestingly, diagnostic medicine is one of the most widely cited and optimistic use cases for AI. Sarah Hunter highlights its potential, stating, “Diagnostic medicine is a fantastic use case for AI.” Healthcare has the opportunity to leverage AI technologies to improve patient outcomes. It can make processes more efficient, underscoring one key way that AI provides massive efficiencies.
The Need for Increased Investment
Despite the cheery picture, experts such as Walsh contend Australia is on track to woefully miss its mark in fulfilling its commitment to develop AI. “We are somewhat lagging behind. We’re not seeing the investments that we’re seeing in other countries,” he notes. While this breakdown in investment might be inevitable, it will make it all the more difficult for Australia to innovate and succeed in the global market.
Hunter further underscores this point by stating that Australia is yet to see the significant impacts of AI in data applications. She says, “It’s clearly here. It’s clearly an incredibly powerful technology,” indicating that while the technology exists, its implementation and integration into various sectors remain limited.
Ellis underscores, workers who depend on experience and pattern recognition will benefit from AI’s supporting functions. This technology will increase their talent, skill and experience, and improve their productivity. He emphasizes how easy tasks should be automated with one-click solutions through user-friendly automation, freeing up work time for more productive tasks. “If I want to change somebody’s reporting line, I go into something called Ask HR and I type it in,” he explains. The system is able to route this request to be fulfilled in the most efficient and swift way possible.
Anticipating Widespread Benefits
Ives has conservative estimates on the long-term bullish economic growth impact of AI, he is extremely optimistic. He argues that financial and lifestyle gains from AI advancements will eventually permeate all sectors of the economy, including households. “I believe it’s going to spread second, third, fourth derivatives,” he asserts, suggesting a cascading effect where initial benefits will lead to further economic advantages down the line.
The optimism is palpable — as well it should be, with Australia’s record investment into AI. Together with this investment, we have the opportunity to create an environment where innovation can really flourish. The opportunity for change is huge. To avoid Australia continuing to get left behind by the rest of the world, experts including our own explain why policymakers must act fast.
