Tech giants Microsoft and Google have brought artificial intelligence to Australia

While the appeal of a largely untapped market is obvious, some say the move could also reflect a lukewarm regulation in the United States.

Sydney Opera House, Australia. Image: Shutterstock.

In order to strengthen its technology field with AI, Australia is opening its doors to AI developers eager to expand into untapped markets.

Tech giant Microsoft said on Tuesday it would invest A$5 billion ($3.2 billion) in the Oceanian nation, Reuters reported. Previously, Google said it would invest $1 billion in partnership with the Australian government.

According to CNN Business Channel, Google’s deal will include projects to protect the Great Barrier Reef and clean energy.

With billions of dollars in investment underpinning Australia’s AI capabilities and capabilities, some say the U.S. regulatory environment is also forcing AI developers to look for better growth elsewhere.

Shanal Aggarwal, chief commercial officer at app developer TechAhead, said Australia’s fortune was benefiting from increased regulatory resistance to AI in the United States.

Aggarwal told the media that "the rules and regulations regarding artificial intelligence in the United States are still a bit unclear. This uncertainty can make it difficult for AI developers to know what they can and cannot do. Push AI developers to work in other countries rather than the U.S., where there may be clearer, more flexible rules. ”

Aggarwal warned that while he acknowledges the need for regulation, stricter rules for AI developers could also limit the growth of emerging technologies at a critical time.

“It’s important to have rules that ensure AI is used safely and responsibly, but not too many rules pushing all AI efforts away from the United States,” he said. ”

Last year, with the launch of ChatGPT, generative AI entered the mainstream and has been adopted in multiple industries. However, questions surrounding how AI models are trained, where data is stored, and copyright infringement have plagued the industry.

A 2022 report by International Data Corporation said Australia is on track to spend up to $3.6 billion on artificial intelligence.

The agreement between Microsoft and the Australian government will increase the number of data centers in the country from 20 to 29, spread across Canberra, Melbourne and Sydney.

Microsoft said it is also working with NSW Technical and Further Education (TAFE NSW) to establish a new learning centre called Microsoft Data Centre Academy to help 300,000 Australians learn the skills needed in the new digital economy. The company said it would also invest in Australia’s cyber defence infrastructure.

In a prepared statement provided to Decrypt, Australian Prime Minister Anthony Albanese PM said: “This is a significant investment in the skills and workers of the future that will help Australia solidify our position as a world-leading economy.” My Government’s priority is to ensure that all Australians benefit from economic growth. That means we need to provide the skills that will enable Australians to succeed in the jobs of the future. ”

Earlier this month, the Guardian reported that Australia’s Commonwealth Education Minister Jason Clare said students could use OpenAI’s ChatGPT in schools starting next year. Microsoft has invested heavily in ChatGPT, including investing $10 billion and integrating ChatGPT into its Bing Internet browser.

Clare said. "We have to learn how to use it, and private schools are using it now. Kids all over the country use it, they use it for homework … To be honest, we’re catching up here. ”