AI in Australia Economic Blueprint

Australia’s economic growth has slowed due to declining productivity, which currently lags 18% behind the United States, primarily due to underinvestment and slow adoption of digital technologies. AI presents an unprecedented opportunity to reverse this trend, with potential annual economic gains of A$115 billion by 2030, mainly from productivity improvements. AI tools are already widely adopted globally and in Australia, enhancing efficiency and enabling innovation in sectors ranging from healthcare and education to agriculture and public services.

In education, Australian academic performance has declined, with significant gaps between rural and metropolitan students. AI tools can bridge these gaps through personalised learning and reduced administrative burdens on teachers, allowing more time for student engagement. South Australia and institutions like UNSW already demonstrate successful AI integration in education, suggesting the potential of wider implementation.

For government services, productivity stagnation has led to increased costs and inefficiencies. AI can significantly improve service delivery, reduce administrative burdens, and enhance public engagement. Examples from the United States and Singapore illustrate the benefits of adopting AI in public services, including reduced wait times and more efficient operations.

Infrastructure investment in AI, particularly data centres, is critical for Australia's future economic resilience. Australia’s capacity for digital infrastructure is expected to more than double by 2030, creating over 8,000 extra jobs and catalysing further economic transformation. Strategic investments in AI infrastructure could position Australia as a key hub in the Indo-Pacific, supporting regional interoperability, innovation, and security.

To realise these benefits, the report outlines a 10-point AI Action Plan that includes rolling out nationwide AI skills training, offering targeted incentives for business adoption, embedding AI literacy in schools and universities, modernising government services, and investing in AI-ready infrastructure. The report stresses the importance of proactive policy settings to avoid falling behind global competitors.

The blueprint concludes by emphasising the necessity for coordinated action among government, business, and civil society. It highlights Australia’s opportunity not just to adapt to the AI era but to actively shape it, fostering inclusive economic growth and strengthening regional cooperation.

Read the full Blueprint here.