The 2024 Australian Federal Budget makes a modest but strategic investment in AI, focusing on safe and responsible adoption, policy development, and national security. While the funding has been welcomed by some, there are concerns that it may not be sufficient to keep pace with global advancements in AI technology. The budget also includes broader technological investments that could complement AI development and support the overall digital transformation of the Australian economy.
Key Budget Allocations for AI and Automation
- AI Funding and Development:
- Total AI Funding: The budget allocates $39.9 million over five years to support the safe and responsible adoption of AI technology. This funding is aimed at developing policies and capabilities to ensure AI is used safely and responsibly.
- National AI Centre: A significant portion of this funding, $21.6 million, will be directed towards reshaping the National AI Centre and an AI advisory body, which will now sit within the Department of Industry, Science, and Resource
- Policy Development and Regulation: $15.7 million over two years will support AI policy development, regulation, and engagement activities across the government. This includes reviews of existing regulations in healthcare, consumer, and copyright law.
- National Security: An additional $2.6 million over three years is allocated to address national security risks related to AI.
- Total AI Funding: The budget allocates $39.9 million over five years to support the safe and responsible adoption of AI technology. This funding is aimed at developing policies and capabilities to ensure AI is used safely and responsibly.
- Support for Small Businesses:
- Digital ID System: $288.1 million will be invested to expand the Digital ID system, which will help reduce administrative burdens and improve security for small businesses.
- Cyber Resilience: The budget includes $23.4 million for the Cyber Wardens program to provide free, online training for small business owners and their staff to help drive cultural change and a cyber-safe mindset in Australian small businesses.
- Broader Technological Investments:
- Quantum Computing: In addition to AI, the budget includes significant investments in other advanced technologies, such as $466.4 million for building the world’s first commercial-scale quantum computer in Brisbane
- Energy Efficiency and Clean Energy: Investments in clean energy technologies and manufacturing, including $62.6 million through the Energy Efficiency Grants for Small and Medium-Sized Enterprises program1.
Implications to Digital Transformation
- Strategic Initiatives and Long-term Goals:
- Digital Transformation: The Digital Transformation Agency will develop and implement policies to position the government as an exemplar in the use of AI, ensuring that AI integration is done responsibly and effectively.
- Safe and Responsible AI Program: The budget supports the continuation of the ‘Safe and Responsible AI’ program, which aims to maximize the benefits of AI while mitigating risks. This includes progressing guardrails for high-risk AI and conducting priority reviews of existing laws.
- Implications for Businesses:
- Support for Innovation and Growth: The Industry Growth Program will receive $392.4 million to help start-ups and small businesses innovate, commercialize their ideas, and grow, which indirectly supports AI development by fostering a more innovative business environment.
- Energy Bill Relief: The Energy Bill Relief Fund will provide energy rebates to small businesses, helping them manage operational costs and invest in new technologies1.
- Mixed Reactions from the Tech Industry:
- Positive Reception: Industry groups like the Australian Computer Society (ACS) and the Tech Council of Australia (TCA) welcomed the investment in AI and other technologies, recognizing the importance of these initiatives for the future of the economy and job creation.
- Concerns Over Competitiveness: Despite the positive reception, there are concerns that the funding is insufficient compared to global standards. The Australian Information Industry Association (AIIA) and other tech leaders have criticized the funding as “negligible” and warned that it may leave Australia trailing behind other nations in AI development.
Conclusion
The 2024 Australian Federal Budget makes a strategic investment in AI, focusing on safe and responsible adoption, policy development, and national security. While the funding has been welcomed by some, there are concerns that it may not be sufficient to keep pace with global advancements in AI technology. The budget also includes broader technological investments that could complement AI development and support the overall digital transformation of the Australian economy.
For businesses, especially small and medium enterprises, the budget provides several supports to help them adopt digital tools, improve cyber resilience, and innovate. These measures are crucial for fostering a competitive and forward-looking business environment in Australia. As the global landscape of AI and intelligent automation continues to evolve, it will be essential for Australia to maintain its commitment to innovation and ensure that its policies and investments keep pace with international standards.
This budget is a step in the right direction, but ongoing efforts and additional investments will be necessary to secure Australia’s position as a leader in AI and intelligent automation.
