Microsoft and the Tech Council of Australia study on the economic implications of generative artificial intelligence (GAI) adoption in Australia by 2030.
A recent study claims that by adopting generative artificial intelligence (GAI) more quickly and responsibly, Australia would generate tens of billions of dollars in economic value by 2030. Microsoft and the Tech Council of Australia collaborated on the report, Australia’s Generative AI Opportunity. It demonstrates that GAI could boost Australia’s economy by up to $115 billion annually by 2030 through two key channels: enhancing current sectors and facilitating the development of new goods and services.
The rate of GAI adoption across all industries and the degree to which workers are assisted in switching to new jobs will determine how much of this potential value is realized.
The analysis, according to Kate Pounder, CEO of the Tech Council, shows how broadly applicable GAI is to Australia’s economy: “Our economy needs a productivity boost at this time of high inflation and slow productivity growth.”
“Emerging technologies, like generative AI, are going to be a big part of the solution.”
“The report demonstrates the enormous potential for generative AI to catalyze growth and innovation across a wide range of sectors, shaping a prosperous future for our country,” said the paper’s author.
“Making the most of this opportunity will require a collaborative effort across government and industry, particularly to upskill our workforce, provide regulatory clarity, and drive uptake of responsible AI practices.”
Impact on the Australian economy over the long run
According to the analysis, GAI might contribute $45 billion annually to the Australian economy by 2030 under the scenario of delayed adoption. This amount might increase to $75 billion and $115 billion, respectively, according to modeling of the medium- and fast-paced adoption scenarios. In Australia, this range corresponds to two to five percent of the national economy.
According to the research, the majority of these gains ($30 billion to $80 billion) would come from raising employee productivity through the automation of repetitive jobs. Additionally, it is anticipated that adding duties with GAI acting as a “copilot” will generate between $10 billion and $25 billion in economic value.
At its current level of performance, GAI has the potential to automate and enhance 44% of the job hours performed by Australian workers. As a result, employees might concentrate their efforts on activities that offer more value to their work and provide higher-quality results.
The paper also predicts that new businesses and jobs will be supported by new goods and services produced utilizing GAI. As a result, it will jointly boost Australia’s GDP by $5 billion to $10 billion.
To properly take advantage of this opportunity, Pounder continued, Australia must assure the quick and responsible adoption of generative AI.
Maximizing the potential advantages of GAI in four important industries
The paper names four significant Australian economic sectors that stand to gain from GAI:
- healthcare
- manufacturing
- retail
- financial and professional services.
It describes possible applications of GAI in each of these fields. A list of the economic benefits that can be obtained from this technology is also included.
For instance, GAI can improve the accessibility and quality of healthcare by lowering administrative burdens, allowing for greater one-on-one patient treatment. It can also promote the move to more proactive models of care by enabling earlier and scalable diagnoses, and it can enhance the personalization of healthcare by being embedded in wearable devices.
And than Microsoft Australia and New Zealand’s chief technology officer, Lee Hickin, stated: “We’re happy to join with the Tech Council on this critical report. In 2023, generative AI has become a transformative technology, with adoption rates rising quickly across a range of Australian industries.
Microsoft is dedicated to promoting closer industry-government cooperation so that the country can appropriately realize the potential economic benefits of generative AI. To fully utilize this technology’s inventive potential and make Australia a world leader in this field, trust must be established in it.
Taking deliberate action and utilizing Australia’s comparative advantages
According to the paper, industry and government are at a turning point in the adoption of GAI, and closer cooperation is required if Australia is to reap the financial rewards of this technology and take the lead globally in this field.
The key to promoting this partnership is to take advantage of Australia’s comparative advantages in digital technology. They consist of a sizable and highly educated tech workforce, significant investments in digital infrastructure, and widespread use of cloud computing.
Moreover the report identifies the challenges that business and government face in leveraging GAI in four key areas: technology capability, enterprise readiness, awareness and skills, and responsible AI. It is based on extensive economic analysis and consultations with industry, government, and academia.
The paper concludes by outlining the strategic steps that adopters and politicians must take in order for Australia to overcome these obstacles and emerge as a world leader in GAI. Determining the opportunity and the goal for GAI in Australia, determining readiness, and encouraging adoption and innovation are a few of these. Along with improving labor skills and creating ethical AI governance frameworks, this is also necessary.
