Australia’s labour government letting us down in the AI race

The recent All-In Podcast “Winning the AI Race” summit featuring Donald Trump highlighted the scale of ambition in the U.S. approach. The administration has launched a sweeping AI Action Plan that includes deregulation to encourage innovation, acceleration of data centre and chip manufacturing infrastructure, tighter export controls, and requirements for “politically neutral” AI systems. This positions the U.S. to outpace global competitors.

Major technology leaders have endorsed this direction. Nvidia’s CEO Jensen Huang described Trump as “America’s unique advantage” for linking energy expansion with AI advancement, an alignment between government and industry rarely seen at such scale.

In contrast, Australia risks being left behind. At Labor’s recent economic reform roundtable, AI received only cursory attention. Treasurer Jim Chalmers announced further reviews and consultations but stopped short of firm policy commitments. Proposals for voluntary standards are unlikely to provide the decisive leadership needed to secure Australia’s place in the global AI landscape.

Australia’s AI ecosystem shows real promise, with clusters in Sydney and Melbourne and a skilled workforce emerging. However, without bold national leadership, investment, and strategy, this potential may be wasted.

The U.S. approach is defined by clarity, scale, and ambition. Australia, by comparison, remains cautious and reactive. The question now is whether Australia will continue to play catch-up or finally set a bold AI agenda of its own.