Australia's AI Imperative and why we need to talk about Canada

Dear Australia,

I love you but we need to talk about Canada.

Today the Kingston AI Group released an economic report by Professor John Mangan cataloguing the benefits of developing AI in Australia and the costs of not doing so. Last week Canada announced a further US$1.8 billion investment in AI bringing Canada's total investment in AI since 2021 to more than 25 times the amount Australia has committed.

Why is this so? Australia remains an outlier compared to other developed nations in our reluctance to make significant investments in this transformative technology. It's like we are clinging to our horse and cart while watching everyone drive past in their new automobiles. I'm tired of hearing the various rationales for why we "can't" invest in AI from, we are too small as a nation, we are different from everyone else, we have competing priorities, we can rely on our allies... To paraphrase George Washington, it is better to offer no excuse than bad ones.

So let's look at Canada. Yes, there are some differences between our nations, Canada has a much stronger manufacturing sector and its main trading partner is the US, while Australia is oriented towards the Asia-Pacific. However, we have a lot of similarities. We are both large countries with relatively small populations. We both rely on primary industries like mining, agriculture and forestry and our services sector substantially contributes to our GDP and employment. Both countries face challenges related to our economic reliance on commodities, which makes us vulnerable to global price fluctuations, and yet Canada can see its way clear to investing in AI while we can not.

So I put a few numbers together to compare our two countries. Our economy's are similar in global ranking, we have similar low population densities, Canada has a higher robot population density related to its stronger manufacturing base, but Australia's venture capital and public investment in AI over the last 3 years is completely dwarfed by that of Canada. One consequence of this disparity in investment is that Canada has many more AI start-ups, who are better funded, start with more employees and have a better opportunity to scale hence of the 16 countries who contribute to Innovation Marketing Specialist - CB Insights AI Top 100 Canada has four (4) while we have none. Remember, Australia ranks 12th in the world's global economies so it is not unreasonable to expect that we could make this list.

Looking at the positives, which I'm always inclined to do, Australia is still well ahead in # Olympic gold medals, although it is unclear how this will help our economy adapt to the impact of AI. That includes the winter Olympics BTW so we are seriously overachieving in this space.

The messages from John Mangan 's report, "Unlocking Australia's Potential: The Economic Imperative of AI" are clear. AI grows industries and allows them to compete globally. AI creates jobs - new, high paying jobs. If we successfully apply AI in key Australian industries we will receive a short-term boost in GDP of more than $200 billion per annum and the creation of an additional 150,000 jobs to 2030. Most benefits of AI will accrue to early adopters, leaving other nations at a disadvantage. Over the next 3 years Australia could face an opportunity cost of 1.4% (or A$35.7 billion) of GDP per year if it fails to introduce AI systems to world standards in key industries, including technology, finance, healthcare, education, and government.

It is not too late. Canada has taken a lead in prioritising investment in artificial intelligence. Australia can too.