The federal government and private sector must act now to ensure Australia harnesses the huge potential of artificial intelligence and doesn’t fall behind the rest of the world, according to a big business industry group.

It comes as pioneering American venture capitalist Mary Meeker released a report outlining the unprecedented pace of AI growth and an optimistic view of its long-term impact.

The Business Council of Australia (BCA) released the Accelerating Australia’s AI Agenda report on Monday, a blueprint towards making Australia a global leader in AI by 2028.

The report puts forward a phased approach to “unlock the potential of AI to boost innovation, lift living standards and address Australia’s decades-long productivity stagnation”.

“AI is our next big lever for economic growth and a significant opportunity to boost Australian living standards,” BCA chief executive Bran Black said.

“If we get this right, AI can deliver a significant productivity boost and that means higher real wages and more opportunities for more Australians.”

The Business Council makes a range of recommendations in the report, including for risk-based AI regulations that encourage innovation, the simplification of data centre approvals, establishment of a national AI Research Consortium, standardised AI courses in education and extra funding for the National AI Centre.

It warns that without immediate actions such as these, Australia will fall behind its main competitors around the world, and the cost of this inaction is high.

“The choices we make now will determine whether we gain a competitive edge or fall behind,” Black said.

“We need to be training more AI specialists, data scientists and engineers, while also educating the entire workforce on how we can improve the day-to-day work experience.

“This is Australia’s moment to embrace the opportunity for growth, and that’s how we’ll build a future where AI strengthens our economy, empowers our people and improves lives.”

BCA says AI could be applied to the "boring but essential" parts of our economy. Photo: Shutterstock

The path forward

The first stage of the BCA’s plan kicks off from July and runs for a year, focusing on establishing essential foundations, such as the use of AI in the public service, the expansion of the AI Centre and the creation of a National AI Skills Compact.

From July 2026 to June the following year, the report calls for capacity building and infrastructure development, including through reforms to AI skills development pathways, the establishment of an Australian AI Safety Institute and improvements to research and development settings.

The final stage, running from July 2027 to June 2028, involves advancing collaboration and optimising data utilisation, including through the expansion of frameworks for public-private data access and sharing, and the launch of an Australian National Data Library.

BCA hinted that AI can be used to replace the more boring aspects of work.

“Even if we apply AI to just the ‘boring but essential’ parts of our economy – like payroll processing or document analysis – the dividends to consumers and businesses could be significant,” Black said.

The BCA report throws the gauntlet down to the newly re-elected Labor government, with hopes it will act fast on AI reforms that are in the works, and introduce further ones.

Former Microsoft policy chief Lee Hickin was appointed to lead the federal government’s National AI Centre in March.

Last year the Labor government proposed European Union-style AI regulation based on 10 mandatory guardrails for high-risk uses of the technology along with possible bans for systems presenting a danger to society.

Unprecedented growth

The BCA’s report comes soon after US venture capitalist Mary Meeker released a comprehensive report on the “unprecedented” growth of AI and how it will impact all sectors of the economy, along with a case for optimism.

“To say the world is changing at unprecedented rates is an understatement,” Meeker said in the report.

“Rapid and transformative technology innovation / adoption represent key underpinnings of these changes. As does leadership evolution for the global powers.”

The report includes a wealth of data and charts detailing just how incomparable the growth of AI is.

“The magic of watching AI do your work for you feels like the early days of email and web search – technologies that fundamentally changed our world,” Meeker said.

“The better / faster / cheaper impacts of AI seem just as magical, but even quicker.

“The pace and scope of change related to the artificial intelligence technology evolution is indeed unprecedented, as supported by the data.”

This optimistic take is yet to be supported by the general public, with a recent survey finding that just 30 per cent of Australians think the benefits of AI outweigh the risks associated with it.