AI set to boost Australia’s economy by up to AUD $142 billion

New economic analysis forecasts artificial intelligence could contribute up to AUD $142 billion to Australia's economy each year by 2030.

The report, titled "Australia's AI opportunity: Adopt, develop, lead," highlights potential productivity gains, a narrowing gender wage gap, and substantial benefits for small businesses if AI adoption accelerates nationally.

Three scenarios for the nation's AI future are outlined in the publication: accelerated AI adoption across industry generating AUD $112 billion annually; development of a domestic AI sector worth a further AUD $18 billion a year; and establishing Australia as a regional exporter of AI-enabled products, services, and education, estimated to produce AUD $11 billion in annual export opportunities.

Industry support

The report was developed with input from a steering committee comprising the Business Council of Australia (BCA), the Australian Computer Society (ACS), the Council of Small Business Organisations Australia (COSBOA), the Australian Information Industry Association (AIIA), several data centre providers, and Women in Digital (WiD). Consultation included over 40 stakeholders, and the report was funded by OpenAI.

The economic analysis not only details the anticipated uplift to gross domestic product, but also forecasts significant social changes, such as an average 7% wage growth across the workforce. Notably, wage growth for women is expected to be 35% higher than for men, and small businesses could see productivity improvements 22% faster than larger firms.

The care sector, in particular, is highlighted as an area that could benefit from AI, with potential for technology to ease workforce shortages by freeing up time for high-value activities. Public services are also identified as areas where AI could improve outcomes.

Key challenges

Despite these projections, the report identifies barriers to the effective adoption of AI. These include a shortage of computing infrastructure, a lack of advanced skills, and issues around public trust and acceptance of AI technologies.

Chris Lehane, Chief Global Affairs Officer at OpenAI, commented on the importance of coordinated action for Australia to secure long-term growth by 2030:

"Australia has the opportunity to build AI by Australia, for Australia, and of Australia, drawing on its strengths in energy, resources, and talent to establish sovereign AI capabilities and become a leader in AI. Putting AI tools into the hands of more Australians and businesses will broaden economic opportunity, ensuring the productivity benefits are widely shared and driving growth across the entire country."

Industry views

Bran Black, Business Council of Australia, said:

"If we move decisively, AI can lift living standards, supercharge productivity, and position Australian businesses to lead globally. But we must act now by upgrading our digital infrastructure, investing in our people, and earning the trust of every Australian. At the same time, international experience is now also clear that the best of intentions to realise an AI edge can be easily squandered by countries with the wrong approach to regulation. Australia simply can't afford to make this mistake."

The Australian Computer Society also emphasised digital infrastructure and skills development:

"This report underlines that AI is not just an economic lever, it is a critical technology capability for Australia's future. To capture the opportunity, we must build world-class compute infrastructure and accelerate the development of advanced digital skills. ACS is focused on ensuring our engineers, developers and data scientists are equipped to design, deploy and govern AI systems that are innovative, resilient, and trusted."

Will Harris, Chief Operating Officer at COSBOA, highlighted the importance of small businesses:

"Small businesses are the heartbeat of Australia's national economy, and this report confirms what we're seeing on the ground - AI isn't just for big corporates anymore. With AI adoption delivering productivity gains 22% faster for small enterprises, it's helping level the playing field for Australia's small business community. The key now is translating these wins across the entire small business sector through accessible training, affordable tools, and trusted frameworks that make AI adoption achievable for every small business owner."

Elizabeth Whitelock, Chief Executive Officer of the Australian Information Industry Association, stated:

"This report reinforces what our members see every day - AI is a game-changer for Australia's economy and society. AI can drive productivity, boost wages, and support businesses of all sizes. But to capture this opportunity, we need to move quickly to address the barriers of compute capability, digital skills, and community trust. The AIIA is committed to working with government, industry, and educators to ensure Australia is not just an adopter of AI, but a global leader in developing and deploying trusted, responsible AI solutions."

Robin Khuda, Chief Executive and Founder of AirTrunk, said:

"AirTrunk is pleased to contribute to this important work. Australia has an opportunity to shape the future of AI - as an architect and a builder, in a way that supports Australians, our industries and our businesses but we need to seize the moment."

Holly Hunt, from Women in Digital, said there is potential for AI to support greater workforce inclusion:

"This report shows AI is not only an economic opportunity but also a chance to make our workforce more inclusive. The finding that women could see wage growth 35% faster than men demonstrates the power of AI to help close the gender pay gap. We must ensure that women are equipped with the skills, confidence, and opportunities to participate fully in this AI-enabled future. By doing so, we can create a more diverse digital economy that benefits everyone."

Craig Scroggie, Chief Executive Officer of NextDC, commented on the infrastructure challenge:

"This report marks a defining moment for Australia. Our future prosperity will depend on how fast we build the infrastructure that powers intelligence. AI could add more than $140 billion a year to the economy by 2030, but only if we deliver at speed and scale. Compute, connectivity and clean energy are now the new resources of competitiveness. Australia's trusted position as a Five Eyes nation, combined with our strong regulatory framework and geopolitical stability, gives us a unique advantage in building secure and sovereign AI infrastructure. Just as we became a global leader in mining, we can lead again in Mining 2.0, the manufacturing and export of intelligence. With sovereign infrastructure built at speed and scale, Australia can anchor the intelligence economy across our region. The nations that move first will define the future."

CDC also affirmed support for development, saying:

"CDC is a strong believer in the AI opportunity for Australia. We also believe that realising this opportunity relies on acting with purpose. This is why we lead the way investing with our partners to build the Australian AI infrastructure at a record pace and scale, so that the benefits of this technology can be shared widely across the nation, people and businesses."

Government perspective

The Assistant Minister for Science, Technology and the Digital Economy, Dr Andrew Charlton, responded to the findings:

"Australia's future prosperity relies on our ability to adopt, build and export new tools and services, including those powered by AI. Success will mean better services, secure and better jobs, and globally competitive businesses - large and small. We are leading the world in adopting and building new technologies, and this report shows the size of the prize."