Australia’s top tech leaders are urging the government to invest heavily in artificial intelligence, arguing that AI could add an estimated $115 billion per year to the economy by 2030. However, despite these projections, the country’s latest federal budget contains little funding for AI innovation, leaving many experts frustrated.

Industry leaders from Microsoft and AirTrunk believe Australia has all the right ingredients to become a global AI powerhouse, but it lacks a strong government-backed AI strategy. They stress the need for investments in infrastructure, energy, and manufacturing—especially in AI-driven technologies that could enhance productivity across industries like healthcare, finance, and logistics.

One of the main concerns raised is that Australia’s corporate investment in AI lags behind other OECD nations. In contrast, countries like the US and China are aggressively funding AI projects, creating an innovation gap that could be difficult to close.

If Australia fails to act now, experts warn that it risks being left behind in the AI race. To capitalize on AI’s potential, they recommend targeted policies, tax incentives, and public-private partnerships that encourage innovation while ensuring ethical AI development.