The economic opportunities associated with AI will be considered as part of a new capability plan to be developed by the federal government over the next year.

Industry Minister Ed Husic announced on Tuesday that the Department of Industry, Science and Resources had been directed to begin work on a National AI Capability Plan, with targeted and public consultation over the next 12 months to culminate with a final report by the end of 2025.

The plan will focus on how artificial intelligence can boost the Australian economy, and what needs to be in place to ensure the full benefits and opportunities are realised.

The plan will have four key priorities: growing investment, strengthening AI capabilities, boosting AI skills and securing economic resilience.

“Growing investment in AI will supercharge industry and create more well-paid jobs,” Husic said in a statement.

“We need to scale up our capabilities in critical technologies, in ways that work for businesses and their workers.

“This plan will look to harness our AI know-how to secure our supply chains and strengthen our critical infrastructure.

Collaboration

As part of the review and consultations, the plan will look at how existing state and federal government support mechanisms are working together to hinder or support the growth of the AI industry, and ways to boost private sector innovation and investment.

It will also identify areas of research and innovation strengthen in Australian universities and businesses, and explore new areas of potential comparative advantage, such as in agriculture, mining and renewables.

When it comes to AI skills, the plan will look at ways to accelerate AI literacy, identify new skills and training, and to ensure workers can re-skill throughout their careers.

The Industry Department will also consult on areas where sovereign capability or infrastructure is required for Australia to get the most out of AI technologies, opportunities and risks when it comes to AI and digital inclusion, and the experiences and rights of communities and workers.

According to the government, there are about 650 AI companies based in Australia, and foreign investors tipped in $7 billion to Australian AI technologies in the five years to 2023.

In 2023, $2 billion in venture capital was invested in Australian AI applications.

Singapore visit

Husic met with his senior counterparts in Singapore early this week in an effort to expand partnerships and develop opportunities in innovation, science and technology.

He also discussed opportunities for Australia and Singapore to work closely on AI and research.

“Australia is at the forefront of solutions to global challenges including renewable energy and the safer use of AI,” Husic said.

“Drawing on our deep ties to Singapore, we can deliver breakthroughs that benefit both our nations.”

Following the last federal election, the Labor government has stumped up the National AI Centre, along with a network of AI Adopt Centres focusing on supporting small and medium-sized businesses.

It has also focused on mitigating the risks associated with AI tools, particularly when used by the public sector.

In August, new Australian Public Service guidelines outlined how government agencies will have to publicly state their use of AI within six months and appoint an accountable official to ensure the safe rollout of the technology internally.

In September the government unveiled its plan for European Union-style regulations of AI, including 10 mandatory guardrails for high-risk uses of technology and potential bans for the riskiest examples of the technology.

And last month a government-led parliamentary inquiry recommended that generative AI tools be included in this definition of high-risk AI tools.