Australia has valuable cards to play in the AI future, new report finds

Australia possesses substantial, yet underestimated, potential in the field of artificial intelligence, according to a new report. The research indicates opportunities for the nation to become a major regional data center hub, leverage its critical minerals for global AI supply chains, and influence the development of international AI norms. The report, "Expanding AI Sovereignty to AI Agency," by the Tech Policy Design Institute (TPDi), offers the first independent, evidence-based assessment of Australia's national AI capabilities.

Despite this potential, the report identifies critical gaps that Australia must address. These include refining regulatory controls for data collection, storage, and access to uphold privacy and human rights. Furthermore, governments need to prioritize powering data centers with renewable and clean energy sources. The TPDi's "AI Agency Tool," developed with over 250 experts, measured Australia's "agency" across 103 AI capabilities, mapping findings against the government's 2025 National AI Plan.

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The data shows Australia is in a stronger position than we give ourselves credit for; we have firm foundations and significant potential to harness.

Zoe Jay Hawkins, TPDi co-founder and lead author, stated that the data shows Australia is in a stronger position than it gives itself credit for, possessing firm foundations and significant potential. She emphasized the opportunity for Australia to play its "cards strategically," drawing a parallel to the prime minister leveraging gas reserves for diesel supply. This assessment comes amid global concerns about AI safety and the expansion of data centers, with some companies reportedly looking to Australia for new locations due to backlash in U.S. communities.

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Australia has valuable cards in its hand. The opportunity now is to play them strategically, just like the prime minister has leveraged Australia's gas reserves to secure diesel supply.