UPDATE — SEPTEMBER 2025: Since Minister Ed Husic first announced the National AI Capability Plan earlier in 2024, the Australian government has advanced policy and funding measures throughout 2025:

• Public Consultations (July 2025): Stakeholder and public input was sought on workforce development, sovereign compute capability, and SME access to government-backed AI hubs.

• AI Adopt Centres Expansion (August 2025): An additional $80 million expanded the network from three to seven centres, giving more SMEs practical support in agriculture, manufacturing, and resources.

• Critical Technologies Fund Alignment: The $1 billion National Reconstruction Fund’s “critical technologies” allocation was directed toward AI scale-ups to reduce reliance on foreign venture capital.

• AI Safety Commitments: The government confirmed that mandatory rules for high-risk AI systems will be legislated in 2026, building on the current voluntary AI Safety Standard and aligning with global frameworks like the EU AI Act.

• Timeline Adjustment: Minister Husic stated the plan will now be finalized in early 2026, not by the end of 2025 as originally planned, to allow for cross-portfolio alignment.

• Broader Context: Australia passed new digital privacy and anti-doxxing laws in 2025, intersecting with AI deployment. The AI ecosystem has surpassed 700 companies, and venture funding reached $2.4 billion in the first half of 2025.

The National AI Capability Plan is moving from vision to structured policy, now positioned as part of Australia’s wider sovereign technology strategy spanning quantum, cybersecurity, and space.

ORIGINAL NEWS STORY:

Australia Unveils National AI Capability Plan to Boost Economic Growth

The Australian government has announced the development of a National AI Capability Plan. The plan, unveiled by Minister for Industry and Science Ed Husic, aims to enhance AI investment, strengthen capabilities, and ensure the technology benefits all Australians.

AI and automation are projected to contribute up to $600 billion annually to Australia’s GDP by 2030. Already, the nation is home to 650 AI companies, with foreign investment contributing $7 billion over five years and $2 billion in venture capital directed toward AI applications in 2023 alone. The National AI Capability Plan seeks to capitalize on this momentum and further Australia’s comparative advantages in sectors such as agriculture, mining, and renewable energy.

The initiative will focus on four key areas:

1. Growing Investment

The plan will review existing federal and state support mechanisms to streamline and enhance Australia’s AI ecosystem. It also seeks to stimulate private-sector innovation and investment in AI development. By aligning government efforts and encouraging corporate participation, the government aims to build a more robust AI industry.

2. Strengthening AI Capabilities

Recognizing Australia’s strengths in research and innovation, the plan will identify areas for future growth, particularly in high-potential sectors. Collaboration between universities and businesses will play a pivotal role in scaling up AI applications that leverage Australia’s unique opportunities in agriculture, renewable energy, and mining.

3. Boosting AI Skills

The government plans to address the skills gap in AI by accelerating literacy and expanding training and retraining programs. This includes enabling workers to upskill throughout their careers, ensuring they can seize opportunities created by AI’s integration into the workforce.

4. Securing Economic Resilience

The plan emphasizes the need for sovereign capability and infrastructure to maximize AI’s benefits while addressing risks associated with digital inclusion. It will also focus on ensuring AI aligns with the rights and experiences of workers and communities, reinforcing the principle that AI should serve humanity rather than dictate it.

The National AI Capability Plan complements existing initiatives by the Albanese government, including the National AI Centre’s educational programs and the establishment of AI Adopt Centres to assist small and medium-sized enterprises in adopting AI technologies. Additionally, the government has introduced measures such as mandatory guardrails for high-risk AI applications and a voluntary AI Safety Standard to promote ethical and responsible AI use.

The plan builds on substantial financial commitments, including $1 billion for critical technologies under the National Reconstruction Fund and nearly $500 million in AI-focused projects supported through the Research and Development Tax Incentive in 2022-23.

The government is committed to engaging with stakeholders through targeted and public consultations, ensuring the plan reflects the needs and aspirations of businesses, workers, and communities. It is expected to be finalized by the end of 2025.

Need Help?

With every day comes a new AI regulation or bill, and you might have questions and concerns about how it will impact you. Don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance.