Australia’s artificial intelligence ecosystem: Catalysing an AI Industry (December 2023)

Date published:
12 December 2023

NAIC's 2023 AI ecosystem report delves into the current landscape of Australia's AI companies and research institutes. It reveals a nimble and growing AI ecosystem that's on par with some of the world's AI leaders.

It details some of the key opportunities that could help Australia become a globally competitive AI maker and exporter. Some of the specific areas include:

  • livestock
  • medical technology
  • horticulture.

The report explains how we must be more effective in turning AI research into commercial opportunities. It identifies 31 potential applications and innovation locations to grow and develop industry specific opportunities.

The report also includes insights from consultations held with 28 stakeholders across the AI ecosystem in Australia. These include representatives from

  • companies developing and adopting AI technologies and supporting services
  • government agencies
  • academic institutions.

Key report findings

  • There are 544 AI companies in Australia, a figure that is on par with other global AI leaders like Canada.
  • The number of AI companies has increased substantially in the past decade. 396 have opened in the past 10 years and 204 in the past 5 years. This is a 7.7% year-on-year growth over the past 5 years.
  • Most of Australia’s AI companies provide data services that develop and optimise AI capabilities. This includes data analysis and management.
  • Australia is among the global leaders in terms of AI job postings. With 1.2% of all job postings in 2022 being AI-related. Demand for AI jobs has been growing faster in Australia relative to international comparisons. The share of AI-related job postings increased by more than 7 times between 2014 and 2022.
  • Australia’s AI companies show patterns of geographic clustering. There are 8 hotspots across Sydney, Melbourne, Brisbane, Adelaide, and Perth. 54% (296) of AI companies are located in these hotspots.

NAIC prepared and released this report when still part of CSIRO.