The following blog was posted in response to Prime Minister Anthony Albanese’s national address on 15 July: AI in Australia’s Interests
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The Prime Minister’s address today at the University of Sydney was a clarion call for Australian leadership in the AI era. It sets out a confident direction for how we must calibrate national policy to ensure the benefits of this transformational technology are shared widely and equitably – an ambition Microsoft strongly supports. We welcome the Government’s sharpened focus for all who share responsibility in Australia’s AI transformation.
Realising the promise of this technology requires deep partnership across industry, technology, and government – all working together to keep AI safe, inclusive, and delivering for every Australian. The Prime Minister’s plan gives us the shared foundation to do exactly that. Australia’s rapid embrace of AI has been felt across every government portfolio, industry and community, and a single national framework is the right way to ensure all Australians benefit from the many opportunities this technology promises.
Coordinating AI policy centrally will give business leaders greater certainty for faster decisions, give Australians confidence that standards are consistent and considered, and give our country the agility to keep pace as the technology evolves. When people trust that AI is safe and well-governed, they adopt it with confidence – in turn, driving productivity and growth. A coordinated national framework is how we scale for systems-wide impact.
Backing Australia for the long term
Microsoft is already investing behind that belief. In April, we committed A$25 billion in new digital infrastructure by the end of 2029. This represents our largest investment in Australia to date and a clear vote of confidence in Australia to be a world leader in the digital economy. Digital infrastructure – including datacentres – underpins the cloud capability that powers our economy and essential services and let every business, government, and individual build and run AI. It is also foundational to Australia’s national security and our economic resilience.
Building infrastructure of this scale carries significant responsibilities. As part of our commitment to Australia, Microsoft signed a Memorandum of Understanding with the Government committing us to its Expectations of data centres and AI infrastructure developers, which include supporting Australia’s energy transition, using water sustainably and responsibly, and investing in Australian skills and jobs.
Our Power Purchase agreement with the Walla Walla solar farm in the NSW Riverina was switched on fully last October. Worldwide, we matched 100 percent of our electricity with renewable energy last year. And just last week, Microsoft shared that for the first time, we replenished more water globally than we withdrew as part of our datacentre operations. We hold ourselves to a high standard so the communities surrounding our datacentres share in their benefits, and we remain committed to working with Government as policy continues to evolve.
Workers at the centre and equipped to thrive
We share the Government’s belief that workers should be at the centre of Australia’s AI transformation – and that AI itself should be a net-creator of jobs. Keeping people at the centre also means equipping them for what comes next. This year, we made the largest AI skilling commitment in Australia’s history, a pledge to help three million Australians build workforce ready AI skills by the end of 2028. Tripling our previous national commitment, we will reach students, workers, and communities too often left behind.
We were also proud to sign a first-of-its-kind Framework Agreement with the Australian Council of Trade Unions earlier this year, designed to keep the worker voice at the heart of this generational change.
Innovation to ensure value is shared
We recognise the significant contributions of Australian journalists and creatives – and the protections they are due – as core to a healthy AI ecosystem. We also believe there is scope for innovative approaches to ensure these technologies benefit everyone.
Our recent agreement with Nine Entertainment Co shows what that can look like in practice. This arrangement allows Microsoft Copilot to draw on high-quality journalism from trusted mastheads, with clear attribution, snippets that point readers to the full story, and new revenue flowing back to publishers. It respects copyright, protects the long-term value of original work, and gives Australians confidence in the information they’re connected with via AI platforms like Copilot.
We have long believed AI should be built and applied in ways that reflect a country’s values and serve its national interest. The Prime Minister’s address gives Australia a strong platform to do exactly that, anchored in a coordinated national framework, sustained investment and a determination to keep people at the centre. Microsoft is optimistic about what Australians will achieve with these tools in their hands. The opportunity for our economy and society is significant, and with the right policy settings in place, Australia is well placed to seize it.