Chalmers defended the government’s track record on AI but said the announcement to centralise regulation in the prime minister’s office was about legislating the standards for data centres and making sure creators maintained control of their work. “I see a lot of upside in AI when it comes to our economy and our society,” he said. “When investors look around the world, they see our renewable energy opportunity, they see our government stability, our geography, our national security arrangements, all of that is very attractive to them.” The government wants to house more than just regular cloud-based data centres and could also be home to large-scale frontier AI training, positioning Australia as a regional hub for advanced computing infrastructure.
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The Treasurer’s optimism is tempered by the challenges of implementing AI safely and equitably. He acknowledged that the transition will require upskilling the workforce and ensuring that workers are not left behind. The government has committed to funding training programs in digital literacy and AI-related skills, targeting both school leavers and mid-career professionals seeking to reskill. Chalmers also noted that the government is consulting widely with industry, unions and civil society to develop a regulatory framework that encourages innovation while protecting against the risks of bias, misinformation and job displacement.
Looking forward, Chalmers believes that AI could be the key to breaking Australia’s productivity rut and unlocking a new era of prosperity. He pointed to examples in healthcare, logistics and finance where AI is already delivering efficiency gains, and argued that scaling these benefits across the economy is the central challenge of the decade. The intergenerational report, due later this year, will provide a comprehensive roadmap for how Australia can harness technology to build a more resilient and dynamic economy. For now, the Treasurer is urging Australians to embrace the changes ahead, while reassuring them that the government will act as a responsible steward of this transformative technology.
