Australia's AI business opportunity lies with expansion

Australian businesses stand to gain from developing their own artificial intelligence (AI) capability, according to a parliamentary inquiry. NAB group executive Peter Steel emphasized that the nation must foster this capability to ensure sovereignty and sustainable local operations. He highlighted AI as "the most significant technology shift of our time" and urged the federal government to support AI education incentives.

Steel explained that AI could boost productivity and enhance living standards in Australia. Liberal frontbencher Andrew Hastie echoed this sentiment, stressing that building a sovereign AI capability would bolster the nation. He called for the government to develop AI capacity to keep up with the rest of the world and ensure accountability under Australian law.

CDC Data Centres' chief strategy officer, Jack Dan, noted that the company had become a focal point in the national AI conversation, despite being in the industry for 20 years. He attributed this to regulatory differences and perceived bad behavior by data center operators. CDC, partly owned by Australia's sovereign wealth fund, supports government agencies and universities but refrains from commercial AI work.

CDC welcomed the proposed national AI standards, which will force new data centers to offset electricity consumption using renewable energy. However, the company severed ties with Firmus, a firm planning to launch Australia's second-largest IPO for an AI project called Project Southgate. The cancellation of Firmus' IPO and Project Southgate occurred amid turmoil following the firm's decision to drop the AI initiative.