National AI plan criticised as ‘turning up to a global race in thongs’

The government has released its long-awaited National AI Plan, but experts warn it is full of promises but lacking the investment, regulation, and urgency Australia desperately needs to compete in the global AI race.

Dr Sue Keay, Director of UNSW’s AI Institute, said “Australia has finally released a National AI Plan, and while it’s nice to see all the right ingredients listed, once again, we’re stuck with a recipe that forgets the actual cooking. The plan rightly lists everything we should be doing, but fails to commit to any real investment or any sense of urgency.

“It’s hard not to feel like we’re turning up to a global race in thongs, asking where the starting line is, while everyone else is already sprinting to the finish line. If we’re serious about building a world-class AI ecosystem, we need more than the right words in a digital document. We need ambition, investment, and a sense of pace that matches reality.”

Professor Toby Walsh, an AI expert from UNSW School of Computer Science and Engineering, said “The long awaited National AI Plan says all the right things but lacks ambition and commitment. It’s hard not to compare against the UK’s AI growth plan announced one week ago with AU$48 billion of investment, both public and private, into the AI sector in the UK promised in the last month alone. The Australian plan includes just $30 million for a much needed AI Safety Institute.”

The National AI Plan highlights the economic opportunities of AI, but based on what we know so far, it leaves important gaps in how Australia manages the risks. Relying on existing laws sounds practical, but those laws were not designed for powerful modern AI systems. 

“Opening up more public and private data could help businesses innovate, but it must be done safely. We need clear rules about how data can be shared, strong privacy protections, and consistent standards for the development and testing of AI systems – especially in sensitive areas like health…,” said Associate Professor Niusha Shafiabady, Department of Information Technology, Peter Faber Business School at Australian Catholic University.

Key stakeholders have weighed in on the government’s AI healthcare report, assessing whether it hit the mark, highlighted critical gaps, and set out expectations for the government’s next steps.

Yet, Professor Walsh criticised the government for backtracking on regulation, despite former Minister for Industry and Science Ed Husic’s earlier support.

“There will be fresh harms that AI introduces, outside of existing regulation. If it is good enough for Europe, why is new AI regulation not needed here?” he questioned.

Reports from the Australian Academy of Technological Sciences and Engineering (ATSE) and the Australian Council of Learned Academies (ACOLA) have repeatedly called for stronger investment and regulation. Yet, six years later, the government still seems content to drift along.

“We will miss this boat if we don’t steer a better course,” Professor Walsh warned. “Where else does the government expect the desperately needed productivity gains to come from if not from technologies like AI?”

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