Sydney today plays host to the Microsoft AI Tour, an event that brings together more than 5,000 innovators and industry leaders to discuss how we can shape the future of Australia’s economy using AI. The day is filled with powerful insights, cutting-edge demonstrations and incredible stories from Australian organisations that are using AI to transform the way they work and serve their customers. We have also made several significant announcements, including plans to upskill one million people in Australia and New Zealand for the AI era.
The event reinforces what many of us already know: AI represents an extraordinary opportunity for Australia. But we must ensure that the technology is adopted broadly across the economy so that everyone can access its benefits. This will require thoughtful investments in infrastructure, skills and security, as well as a shared commitment to developing and deploying AI safely and responsibly.
At Microsoft, we’re proud to be working alongside our customers, partners and government to help Australia realise this vision. Together, we’re building a future-ready AI economy that drives innovation, enhances lives and positions our nation as a global leader.
Leading with safe and responsible AI
AI has the potential to drive amazing advances, but it comes with important responsibilities.
It’s essential we adopt a people-first mindset towards AI, where safety, transparency and social benefits are top priorities, alongside productivity and operational gains. We should also work hard to ensure that no one is left behind.
Achieving these goals requires effective policy and a high level of collaboration between industry, government and society at large. For the potential of AI to be realised in a safe and trusted way, the Australian community must be engaged in its design, development and deployment.
Microsoft has been actively engaging with governments and policymakers to help create a safe and responsible AI economy in Australia.
In our appearance at the Senate Select Committee on Adopting AI, we committed to working with the Australian Government and the broader industry to mitigate the risks and challenges associated with AI.
We are also working collaboratively with the Department of Industry, Science and Resources as it works to develop mandatory guardrails for AI in high-risk settings. It was great to see the Department , which was an important step in promoting best practice AI governance.
Australia’s AI opportunity
While we must prioritise safety and responsibility, we shouldn’t underplay the fantastic opportunity AI represents for Australia. It will enable us to drive economic growth, foster innovation and positively impact lives here and around the world in the fast-emerging AI economy.
Research by Microsoft and Mandala shows just how transformative AI can be for Australia. By 2035, it estimates that $18.8 billion in annual revenue could be generated locally in the AI economy. Australia is particularly well placed to lead in three key areas: applications, AI datacentres and data, which together represent 90 per cent of this projected new activity.
According to research firm IDC, the business case for investing in AI is compelling. It says that for every dollar Australian and New Zealand companies invest in generative AI, they see a return of $3.50 – often within 14 months.
But achieving this vision requires collective action by industry and government, and we’re committed to playing our part in this historic moment. We’re focusing on investments in infrastructure, skills and security to help build a healthy and safe AI ecosystem in Australia.
Expanding the nation’s digital infrastructure
Infrastructure is the backbone of the AI economy and is vital to making AI accessible. Having this infrastructure in Australia, built by both local and global companies, is also an important competitive advantage.
Last year, Microsoft announced a $5 billion investment over two years to expand our local hyperscale cloud computing and AI infrastructure. We on track to increase our computing capacity by 250 per cent and expanding our datacentre footprint from 20 to 29 datacentres.
This week, we also announced an extension of our Azure cloud infrastructure to Western Australia. This will help meet the state’s growing demand for cloud and AI services and further support its economic growth.
Empowering the workforce with AI skills
However, infrastructure alone isn’t enough. To realise AI’s full potential and ensure every Australian can take advantage of it, we need people with the skills to build, manage and use these transformative technologies.
A recent Tech Council of Australia report predicts that AI could create up to 200,000 new local jobs by 2030. To make that possible, Australia’s AI workforce needs to grow by around 500 per cent in the next six years.
Microsoft is addressing this challenge head-on. In October 2023, we committed to training 300,000 Australians in digital skills over two years, and we’re on track to meet this target ahead of schedule in early 2025.
Today, I was proud to announce a new commitment to help an additional one million Australians and New Zealanders gain AI skills by the end of 2026. We will work with governments, businesses, educational institutions and not-for-profits on a range of exciting initiatives to achieve this goal.
These initiatives include an AI Business Boost program, which will provide skills to 23,000 employees and 10,000 leaders of small and medium-sized businesses. We’ll achieve this in partnership with key groups such as the Victorian Chamber of Commerce and Industry.
Organisations will also have access to other Microsoft training programs, including the AI Academy, which has been successfully trialled with a number of major enterprises and already delivered AI-related skills to about 10,000 people.
In addition, we will continue to grow and support the Institute of Applied Technology – Digital, which provides essential support to business and those seeking to upskill or reskill in AI. The institute has received more than enrolments to date, signalling strong demand for its short courses.
Strengthening security in the AI era
Trust is the foundation of AI’s future, and cybersecurity is critical to maintaining that trust.
Over the past year, Microsoft has deepened its partnerships with Australian public and private sector organisations to help protect digital technologies including AI systems – and the data they rely on – from emerging threats.
In October 2023, we announced a partnership with the Australian Signals Directorate (ASD) to improve protection from cyber threats for Australian residents, businesses and government entities. This partnership is already bearing fruit, with Microsoft working closely with ASD to identify the cybercriminal behind the Medibank ransomware attack.
We also announced the integration of Microsoft Sentinel with ASD’s Cyber Threat Intelligence Sharing program in March 2024. This was the first such collaboration globally using Sentinel to enable public–private exchanges of threat intelligence.
Enabling AI transformation
Microsoft’s investments in infrastructure, skills and security are enabling organisations in Australia – and around the world – to achieve AI transformation.
This was evident at the AI Tour, where we heard many inspiring stories from Australian organisations about how they are using AI to enrich employee experiences, reinvent customer engagement, reshape business processes and bend the curve on innovation.
For example, Coles is collaborating and co-innovating with Microsoft on various initiatives to help the supermarket giant grow its sales and ecommerce capabilities, increase operational efficiency and enhance customer experiences.
In the public sector, the Australian Federal Police is working with Microsoft and specialised software vendors to use AI to work more efficiently, better detect deepfake images and problematic content and to protect the wellbeing of its people.
Suncorp is reshaping the insurance industry with Azure OpenAI Service, developing a solution that provides a single view of each claim. This innovation enables a rethinking of Suncorp’s claims summarisation model and has reduced the life of a claim by 9 per cent.
Retail leader Petbarn is harnessing generative AI to revolutionise how pet owners care for their companions. Its intelligent assistant, PetAI, offers personalised pet care advice and product recommendations based on extensive proprietary data.
Meanwhile, Brisbane Catholic Education is undertaking the largest rollout of Microsoft 365 Copilot at any K-12 education organisation globally. It will make Copilot available to 12,500 educators and support staff after a successful trial.
A shared journey
It’s impossible not to feel inspired on days like today. Hearing so many stories of innovation at the AI Tour reminded me how far we’ve come – and how much further we can go.
AI transformation is more than just a technological shift; it’s a collective journey. Companies, governments, educational institutions and not-for-profits must come together to ensure that AI benefits every Australian safely and responsibly.
As we move forward, I’m excited to see how Australia’s AI economy evolves. With the right investments in infrastructure, skills and security, there’s no limit to what we can achieve. Let’s seize this opportunity – together.
Steven Worrall, Managing Director, Microsoft Australia and New Zealand
