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By Dr Paul Dalby, Business Development Advisor, Australian Institute for Machine Learning, the University of ÐÂÀ˲ÊƱ.

This article is an extract from , a report published in partnership with the .  

The factors that limit the growth and expansion of AI are very different for Australia than for the rest of the world.

Globally, there’s a tidal wave of investment and activity in AI research, start-ups and existing companies. It’s true to say that there’s a stampede towards universities that train the talent needed to grow the AI sector and create the next generation of AI.

Australia’s R&D spend per capita is much lower than for similar-sized OECD economies, and our number of patents filed per million of population, at 14 per year, is way below any other comparable economy (the OECD average is 38 patents per million).¹ This exemplifies an overall attitude to innovation that will limit Australian economic development in a Covid-normal world that requires increased self-reliance.

Australia’s comparatively low R&D commitment sets us up to underperform in industries that require investment in innovation, such as AI. Characterised by processes exhibiting high levels of automation, and increasingly AI, both competitive and comparative advantages will belong to the creators of technology, not the consumers. Given the inherently opaque nature of AI, this poses a number of dangers to Australia in allowing technological control to remain with other nations, non-state actors and foreign technology companies.