Australia has released its National AI Plan to grow the AI industry in Australia.
The Plan sets out how Australia will capture the economic opportunities from AI, share the benefits across the community, and manage emerging risks.
The Plan affirms Australia’s potential to develop targeted, high-value AI products and services for industry, and to take those solutions to global markets. It also positions Australia as an important regional hub for the next generation of sustainable digital infrastructure.
An innovative destination for AI development
Foreign investment will be critical to support Australia’s AI ambitions. The country already attracts large AI-related investments, with over A$700 million in private investment flowing into AI firms in 2024 (Department of Industry, Science and Resources, Australia’s artificial intelligence ecosystem: growth and opportunities, June 2025).
Global AI firms are setting up in Australia to tap the country’s talent for software engineering and product development, research excellence, and progressive industries willing to test new technologies. US-based Groq recently launched its AI inference platform in Australia, joining Atlassian, OpenAI, Singaporean agtech Polybee, and Australian AI-focused leaders such as Canva, Harrison.AI and Heidi AI. Partnerships between Australian and international firms are also rising, with US firm SambaNova and Australia’s SouthernCrossAI partnering to develop Australia’s first sovereign AI cloud.
With a long history of innovation, Australia has enormous potential to create and commercialise the next generation of industry-level AI applications. Australian firms filed more than 600 patents related to AI between 2015 and 2024. Businesses more than doubled their investment in AI R&D, investing A$668.3 million in 2023–24, compared to $276.3 million in 2021–22 (ABS, Research and Experimental Development, Businesses, Australia 2023–24, August 2025).
Our culture of creativity and experimentation is supported by a thriving tech and innovation ecosystem comprising:
- 1,500 AI companies
- 167 research institutes
- 8 AI clusters
- 6 universities ranked in the world’s top 100 for AI research
- a lively startup environment.
Australia’s culture of innovation is fostered by world-class education, with our universities ranked among the best in the world for research output and innovation. Importantly for AI development, Australia excels in computer science, information technology and computational science.
International AI companies can tap into a 77,000-strong workforce of AI, machine learning and software engineers. The talent pipeline is also robust, with Australian universities producing close to 2,000 graduates with AI qualifications every year. The Australian Government is also creating an AI Skills Accelerator in partnership with Microsoft to address gaps in skills and training.
Australia is also investing in the smart infrastructure needed to support AI. The Australian Government is developing a set of national data centre principles that will set clear expectations for sustainability and other factors.
Funding support for AI
Australia has committed more than A$460 million in existing funding to AI and related initiatives. The National AI Plan brings this investment together in a cohesive strategy to maximise benefits and manage risks. The funding includes:
- over A$362 million in targeted grants from the Australian Research Council, Medical Research Future Fund, National Health and Medical Research Council, and Cooperative Research Centres
- A$47 million for the Next Generation Graduates Program
- A$39.9 million to strengthen Australia’s AI ecosystem, which includes expanding the National Artificial Intelligence Centre, the body supporting industry to adopt AI.
Australia also offers a R&D Tax Incentive to support research and innovation. Around A$950 million [has been] registered by businesses for activities associated with AI under the R&D Tax Incentive program, across the 2022–23 and 2023–24 income years.
These funding mechanisms are complemented by broader technology investments that can support AI and related technology development, including a further A$1 billion commitment for critical technologies in the national interest, including AI, under the National Reconstruction Fund.
The first wave of AI innovation has demonstrated its potential to disrupt and drive productivity across industries. The next challenge is creating the practical, industry-level applications that will change how business is done, and drive growing revenues from the technology.
How Austrade can help
The Australian Trade and Investment Commission (Austrade) supports foreign investors to establish and expand operations in Australia. Our investment specialists in Australia and around the world can help you through every stage of your investment journey.
We offer the latest industry insights, connections with key stakeholders and decision-makers, and virtual or physical site visits to Australia. Thousands of foreign businesses have worked with us to tap into the Australian market.
For more information about AI and data centre opportunities in Australia, contact an Austrade investment specialist.
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