Sydney, May 23: Australia is leading the way in AI innovation and growth in the Asia Pacific region, according to a recent study by Intel and IDC.
The IDC Asia/Pacific AI Maturity study assessed AI maturity and competitiveness across eight markets, including Australia, India, Indonesia, Japan, Korea, Malaysia, Singapore, and Taiwan.
The study found that Australia is an AI Innovator, scoring above the regional average in enterprise, government, and socio-economic dimensions.
Australia’s strong technology infrastructure and data management strategies are key factors in its AI initiatives.
Notable projects include Intel’s collaboration with Western Sydney University to build DeepSouth, the world’s first supercomputer capable of brain-scale simulation.
This initiative aims to enhance understanding of the brain and develop large-scale AI applications. Another example is the retail software provider Shelfie, which uses edge AI vision analytics and Intel technologies to improve customer experiences and inventory management.
The report highlights Australia’s leadership in AI, noting that the country’s AI spending is expected to grow at a compound annual growth rate (CAGR) of 25.4 per cent from 2023, reaching USD 8.3 billion by 2027.
This makes Australia the second-largest AI spender in the region after Japan.
The banking, financial services, and insurance (BFSI) sector leads AI spending in Australia, focusing on cost reduction and automation.
The government sector is the second-largest AI spender, investing heavily in integrating AI into public services and digital infrastructure.
Despite widespread AI investment, only seven per cent of large Australian enterprises view AI adoption as core to their competitiveness, indicating challenges in effective AI deployment.
The challenges to AI adoption in Australia include unclear business outcomes, insufficient technology performance, a small and dispersed population, and high operational costs for technology infrastructure expansion.
Additionally, high tax rates push high-end AI skills and innovation offshore.
Andrew McLean, Managing Director of Intel Australia & New Zealand, provided three recommendations to enhance Australia’s AI maturity and competitiveness.
He suggested preparing for hybrid AI by adapting existing technology infrastructure to deploy AI effectively across data centres, clouds, clients, and edge environments.
Developing a technology base and culture that enables interoperability, adaptability, and sustainability can reduce complexity and deployment time.
Secondly, he emphasized the importance of enabling an open ecosystem by fostering open, flexible, and scalable computer platforms to meet changing AI workload requirements.
Open-sourcing AI can create more value and support scaling efforts. Lastly, McLean highlighted the need to elevate AI understanding for all by promoting AI education not only in technical fields but also among non-technical workers.
Leveraging low-code/no-code AI tools can help the non-technical workforce benefit from AI advancements.
Australia’s commitment to integrating AI into business and society positions it well in the competitive landscape.
However, addressing scalability challenges and fostering a comprehensive understanding of AI across all sectors will be crucial for further advancement.
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