Australians’ Business Spending On AI To Reach $3.6B In 2025

According to IDC research, Australian businesses will spend $3.6 billion on artificial intelligence (AI) systems by 2025. 

Among other things, artificial intelligence (AI) has the potential to boost Australia’s competitiveness, enable industry-wide transformation, and unlock local jobs and economic growth. According to the market research firm, spending will increase by 24.4 percent annually from 2020 to 2025. As businesses increase their investments to “keep up with the changing digital environment.”

To position Australia as a global leader in AI technology. The Australian government is investing $124.1 million in the Artificial Intelligence Action Plan. The government is ensuring that our regulatory settings and systems remain fit-for-purpose and agile as technology advances. This will establish Australia as a global leader in digital economy regulation, allowing us to remain at the forefront of safe, secure, and trusted emerging technology use.

Artificial Intelligence Action Plan for Australian’s Business

The Government’s AI Action Plan, which was released in June 2021, outlines the government’s strategy for enhancing Australia’s AI capability in order to grow the economy, support industry competitiveness, create jobs, and improve people’s lives (such as modernising manufacturing and farming activities, improving diagnosis and treatment of diseases, and enhancing our defence capabilities).

The Action Plan is supported by a number of funding initiatives (described below) that address barriers to AI adoption and encourage it across the economy. 

Banking, federal and state government, professional services, and retail will lead in AI spending. AI is expected to be used in the following ways by these industries:

• Banking: Preventing fraud, detecting threats, and improving recommendation systems

• Federal and Central Government: Personnel and infrastructure threats must be detected, monitored, and responded to.

• Professional Services: By self-regulating and automating mundane software maintenance activities, we can provide better digital assistance.

• Retail: Improving customer service, offering expert shopping advice and product recommendations, and optimising digital supply chain operations.

National AI Centre – Lifting Australian Businesses AI Capability

The National AI Centre, along with four Digital Capability Centres, will lay the groundwork for an Australian AI and digital ecosystem. These centers will help to accelerate business adoption and the use of transformative AI technologies to increase productivity and competitiveness. The center will:

1. Projects that improve AI’s ability to use cutting-edge technology in a variety of industries, foster industry-researcher collaboration, and attract investment are encouraged.
2. offer a “front door” for SMEs looking for talent, knowledge, and tools to implement transformative AI technologies.
3. Ensure that activities delivered by each of the capability centers are strategically aligned by working across the entire AI ecosystem.

AI Solutions to Strengthen Australia

Solutions Using Artificial Intelligence (AI) to Make the World a Better Place with Grant Funding. Australia will fund businesses to pilot AI projects that address national challenges. These companies will work with the government to create AI-based solutions to these problems. And resulting in job creation, economic recovery, and other social benefits.

The challenges will center on the AI specialisation industry sectors. Identified in the Artificial Intelligence Roadmap, National Science and Research Priorities, CSIRO Missions, and supporting the Modern Manufacturing Strategy.

Final Thoughts

As a business partner, Alkye recommends bringing the most up-to-date technology to our clients to help them grow their businesses.