Australia has been called to lead the world in AI by turning its research strengths to unleashing commercial opportunities in industries where it is already a leader. A new report, Australia's Artificial Intelligence Ecosystem – Catalysing an AI Industry, highlights livestock production, medical technology, and horticulture as areas in which AI innovation could give it a competitive differentiation.
Published to coincide with Australia's first-ever AI Month, the report offers a deep dive into Australia's current AI landscape for businesses, investors, government, and research institutions. Results show that while Australia is a serious player in global AI research, producing 1.6% of global AI research, its contribution to AI patents filed in the country stands at a mere 0.2%. This imbalance shows there is an opportunity to commercialize AI research and innovations emanating from Australia more effectively.
By protecting patents and turning leading-edge research into real-world use, Australia can realize the $13 trillion AI market opportunity. This will heighten international competitiveness for the country and further serve to attract investment, develop talent, and create more jobs, the report says.
AI as a Growth Engine
The report, commissioned by the National AI Centre of CSIRO, makes the case and argues that Australia's AI ecosystem is well in bloom, building a position for itself as a global AI leader with specific areas of specialisation already emerging. Such top five identified sectors considered ripe for AI-driven innovation include:
- Livestock Production
- Medical Technology
- Horticulture
- Optometry
- Dermatology
Dr. Stefan Hajkowicz, the report's lead author and senior research consultant at CSIRO's Data61, suggested to media that the country's AI capabilities should be channeled into areas where Australia is already a world leader. He believes further innovation in these areas would ensure growth in AI, hence giving Australia the ability to export AI.
Local AI Solution
Dr Alexandra Bratanova, senior research scientist at Data61 and co-author of the report, said this had the advantage of developing locally tailored AI solutions. "Homegrown AI solutions can be higher in quality, more aligned to local needs, and more responsible than international alternatives," she said. The report also found AI companies in Australia tend to cluster in geographic hotspots, particularly in cities such as Sydney, Melbourne, Brisbane, Adelaide and Perth. These clusters thereby allow firms within this area to interact with other people sharing their knowledge and further developing their skills.
Key Findings of the Report:
- Australia has a total number of 544 AI firms, a number comparable to other global AI leaders like Canada.
- The total number of AI companies in Australia has increased significantly over the last decade, with 396 new AI companies within the last 10 years and 204 in the last five years at an annual growth rate of 7.7%.
- The majority of these companies are into data services, including AI optimization and data management.
- These hotspots are highly concentrated, with 54% of the AI companies found within eight major hotspots across five Australian cities.
Some of the key findings of stakeholder consultations are brought together in the report, wherein the views of 28 stakeholders from the whole AI ecosystem are represented: companies, government agencies, and academic institutions involved in AI research and development.