Overview: Australian National AI Plan 2025

Australian National AI Plan 2025

The Australian Government’s National AI Plan 2025 outlines a whole-of-nation strategy structured around three goals

1. Capture the Opportunities

2. Spread the Benefits

3. Keep Australians Safe

   
   

These goals are operationalised through 9 Actions. Below is a breakdown of each.

The 3 Main Goals of Australia's National AI Plan

Pros & Cons of the Plan

Pros

• Comprehensive scope: covering infrastructure, workforce, industry, safety, international alignment.

• Strong investment signals: including >$100B in potential data-centre growth, $460M+ in AI capability funding, and sovereign GovAI platform.

• Worker-centered and inclusive: (First Nations governance, regional focus, SMEs, unions).

• Responsible AI embedded throughout: with the AI Safety Institute (AISI) playing a major role.

• Globally connected: aligns with Bletchley, Seoul, Paris, and Five Eyes partnerships.

Cons / Challenges

• Implementation complexity: cross-agency coordination and whole-economy adoption is demanding.

• Digital divide persists: regional and disadvantaged groups still face access barriers.

• Energy and sustainability risks: rapidly growing data-centre demand.

• Skills gap urgency: large-scale upskilling required; current programs are fragmented.

• Regulatory lag risk: AI is evolving faster than policy cycles.

Summary of the 9 Actions

ACTION 1: Build Smart Infrastructure

Focus: national compute, data centres, connectivity, energy, submarine cables.

• Expand NBN; map compute; develop national data-centre principles; coordinate approvals.

• Leverage massive private investments (Microsoft, Amazon, Firmus).

• Aligns with renewable energy and energy-efficiency goals.

ACTION 2: Back Australian AI Capability

• $460M+ in current funding across ARC, MRFF, CRCs.

• Launch of GovAI: sovereign AI model hosting for government.

• AI Accelerator under CRC program.

• Unlock high-value datasets across government and industry.

• Support culturally appropriate First Nations data governance.

ACTION 3: Attract Investment

• Investor Front Door to streamline approvals for major AI projects.

• Austrade to promote Australia as an AI hub for the Indo-Pacific.

• Balances foreign and domestic capital (incl. superannuation funds).

• Ensure national-interest protections for critical AI infrastructure.

ACTION 4: Scale AI Adoption

• Support SMEs, NFPs, First Nations businesses.

• NAIC leads AI adoption support + $17M AI Adopt Program.

• Address metro–regional adoption gap (40% vs 29%).

• Infoxchange partnership boosts NFP digital capability.

ACTION 5: Support and Train Australians

• Embed AI literacy across schools, VET, universities, workplaces.

• Next Gen Graduates Program; FSO Skills Accelerator – AI; Digital Knowledge Exchange.

• Worker consultations, union involvement, protections against algorithmic harms.

• Close digital inclusion gaps (gender, disability, First Nations, regional).

ACTION 6: Improve Public Services

• GovAI platform for government agencies.

• AI pilots in schools, justice, environment, veterans’ services.

• Chief AI Officers in every agency; AI Plan for the APS.

• Strengthen data governance and Indigenous data sovereignty.

ACTION 7: Mitigate Harms

• Leverage existing legal frameworks; expand as needed.

• Address AI-enabled crime, bias, deepfakes, online harms.

• Ongoing copyright and healthcare AI regulatory reviews.

• Strengthen cybersecurity via Home Affairs, intelligence agencies.

ACTION 8: Promote Responsible Practices

• NAIC guidance for AI adoption and AI-generated content.

• Encourage transparency (labelling, watermarking, metadata).

• Expand industry standards and regulator guidance (APRA, ASIC).

• New practical online tools for SMEs.

ACTION 9: Partner on Global Norms

• Strengthen AI safety partnerships (Bletchley, Seoul, Paris, GPAI, Five Eyes, UN).

• Indo-Pacific leadership for trusted digital infrastructure.

• Bilateral initiatives (Singapore MoU, India Framework, Australia-UK AI partnership, US Technology Prosperity Deal).

• AISI to collaborate globally on AI safety science.

Timeline of Activities & Goals (2025–2030)

(derived from plan milestones)

2025

• Establish AI Safety Institute (AISI).

• Release APS AI Plan + appoint Chief AI Officers.

• Expand NAIC remit and deploy AI Adopt Program.

• Begin develop data-centre national principles.

• Launch CRC “AI Accelerator”.

2026

• Initial gov datasets unlocked for AI training.

• Major data-centre projects commence expansions.

• First GovAI tools scaled across APS.

• AI literacy hubs expand nationally.

2027

• Workplace AI protections assessed and modernised.

• Regional AI adoption programs scaled.

• National workforce AI skills framework matured.

2028

• Nationwide digital inclusion uplift targeted (regional, First Nations).

• AI-enabled public-service workloads reduced (e.g., healthcare triage, education planning).

2030 Target Outcomes

• Australia has sustainable digital/compute capability.

• Businesses competitive and workers supported.

• Public services measurably improved.

• Australia globally aligned in responsible AI norms.

Budget Summary & Commitments

Direct AI-Specific Investments

• $460M+ existing AI funding (ARC, NHMRC, MRFF, CRCs).

• $39.9M to expand NAIC and AI ecosystem.

• $47M Next Generation Graduates Program.

• $17M AI Adopt Program.

Related / Enabling Investments

• $1B in critical technologies (incl. AI) via National Reconstruction Fund.

• $950M R&D Tax Incentive AI-related claims (2022–24).

Private Sector Commitments

• $20B Amazon data-centre expansion (2025).

• $5B Microsoft hyperscale cloud/AI infrastructure (2023).

• Up to $73.3B Firmus Project Southgate (2025).

• $Billions in additional data centre investment pipelines.

This mix signals one of Australia’s largest tech-infrastructure expansions in history.

Main Participants

Government

• Department of Industry, Science and Resources (lead)

• NAIC

• AISI

• DTA (Digital Transformation Agency)

• DFAT

• Home Affairs

• State & Territory Governments

Industry

• Data-centre operators (Amazon, Microsoft, Firmus, CDC)

• AI startups (e.g., Harrison.ai)

• SMEs

• Not-for-profits (Infoxchange)

• Large regulated sectors (banking, healthcare, energy)

Education & Research

• Universities, ARC, CRCS

• TAFEs, FSO, JSCs

Civil Society

• First Nations communities

• Unions

• Consumer groups

• NFPs and social enterprises

Main Beneficiaries

• Australian workers (upskilling, better wages, safer workplaces).

• SMEs (tailored support, productivity uplift).

• Regional and First Nations communities (focused inclusion initiatives).

• Government service users (faster, clearer, more personalised services).

• AI industry and researchers (funding, data access, infrastructure).

• Hospitals, educators, environmental programs (AI efficiency).

• Whole economy (productivity, innovation, job creation).

Summary

The plan focuses on three national goals: capturing the opportunities, spreading the benefits, and keeping Australians safe. With nine core actions and one of the largest waves of digital investment in Australian history, this plan sets a clear direction for responsible, inclusive, and future-focused AI growth.

Major investments include billions in next-generation data centres, $460 million in AI research and capability, and a sovereign GovAI platform that ensures government-built AI remains secure, ethical and transparent. Skills and workforce development are at the centre of the strategy, with new programs to support students, teachers, VET learners, jobseekers and workers navigating AI-driven change.

Importantly, the plan commits to strong protections addressing AI-enabled harms, deepfakes, data misuse, algorithmic discrimination, and risks to vulnerable groups. The establishment of an AI Safety Institute places Australia alongside global leaders in shaping the safe development of advanced AI.

The plan can be an economic and social blueprint designed to ensure every Australian shares in the benefits of AI, whether they’re in a regional community, a small business, a classroom, a healthcare setting or a global research lab.

If it is delivered it offers Australia a clear pathway toward becoming a trusted AI leader in the Indo-Pacific, one that builds sovereign capability, protects its people, and embraces innovation with confidence and purpose.

Download the whole plan PDF at https://www.industry.gov.au/sites/default/files/2025-12/national-ai-plan.pdf