Federal budget 2023: Less than $100m for artificial intelligence

Australia will be “at the bottom end of the scale” when it comes to investing in this cutting edge technology that will change the way we live.

Artificial intelligence may be a modern day “gold rush” but the government has allocated less than $100 million to its take up over the next five years.

According to the Budget papers, the government will provide $101.2 million between now and 2027-28 to support businesses to integrate both quantum computing and AI technologies into their operations.

This will be achieved through a Critical Technologies Challenge Program, starting with a focus on projects that use quantum computing; the extension of the National AI Centre and its support of responsible AI usage; the establishment of an Australian Centre for Quantum Growth to help commercialise Australia’s quantum industry; and support for small and medium enterprises’ adoption of AI technologies.

Centre for Augmented Reasoning director and Amazon applied science director Professor Anton van den Hengel said $1 billion over seven years would have been a more reasonable amount for the government to pledge to AI research and development.

“That would put us around the bottom end of the scale of what comparable nations are doing but it’s at least a place to start and we have to start now,” he said.

“It’s like saying at the gold rush ‘don’t worry, those guys are finding the gold but we will wait five years and just wait until the price of shovels decreases and start digging holes then’.

“The gold rush is now and we are not participating.”

Australia is missing out on the next “gold rush” by ignoring, according to experts.

For comparison, Prof van den Hengel – who is one of 14 Australian AI professors that formed the Kingston Group to “call out the perilous state of AI funding in Australia compared to the rest of the world” – said over the past few years, Singapore had invested $740 million (AUD) in AI, the UK had put in $1.87 billion, France committed $3.5 billion, South Korea invested $1.1 billion and the US has put in as much as $300 billion depending on definitions of AI.

“The pokies in NSW just made $8 billion in profit and we somehow are not ready to spend $1 billion on (the Australian economy),” he said.

“This is an intergenerational opportunity slipping through our fingers.”

He argued that AI was the single technology that would improve productivity in every Australian industry – including manufacturing, which the government hoped to reinvigorate.

Peak body for scientists and technologists Science and Technology Australia chief executive Misha Schubert agreed it was important for Australia to focus on responsible AI.

“We know that AI is one of the key frontier technologies that is poised to transform almost every aspect of people’s lives, our jobs and our industries, so it’s really important Australia is investing deeply in understanding and driving the technology in a responsible and ethical way,” she said.

Australia’s AI investment puts it near the bottom of the world.

Professor Simon Lucey, director of the Australian Institute for Machine Learning at the University of Adelaide, said Australia risked a serious skills shortage if it did not ramp up investment in AI education and research.

“There’s a lot of interest in AI from Australian businesses and industry, and that’s great, but we can’t just rely on using off-the-shelf AI products,” he said.

Prof van den Hengel said Australia’s lack of AI funding had encouraged brain drain as our best and brightest minds moved overseas.

“We need 161,000 people with specialised AI skills by 2030 and we would be lucky to be at 1000,” he said.