What kind of AI nation does Australia want to become?Australia needs to be clear about where it can build AI capability and where it should import it, what intellectual property should be created and protected here, and how that capability can become exportable.JOANA VALENTE and STU SCOTISAustralia can become an AI powerhouseGift this article4 min read34 minutes agoThe Federal Government’s move to establish a new Office of AI, which will help set national standards for AI data centres, protect Australian intellectual property, guard against cyber risks and consider AI in Australia’s national interest, marks an important shift in the country’s AI debate. It recognises that artificial intelligence is becoming part of our economic infrastructure.That brings Australia closer to answering a crucial question: what kind of AI nation does it want to become? The answer should be ambitious and span the full AI value chain, from critical inputs and infrastructure to skills, services and investment.Global capital is already moving. The choices Australia makes now will influence whether we share in this investment, and how much of the value generated by AI is retained here across the entire value chain.Joana Valente is Technology and Transformation Lead Partner for Federal Government at Deloitte AustraliaThat means thinking more broadly than policies that promote adoption while managing risks. Those policies matter, but our national approach should also support innovation, productivity and talent.This puts value creation at the centre of the debate. Australia needs to be clear about where it can build AI capability and where it should import it, what intellectual property should be created and protected here, and how that capability can become exportable.This looks like Australian companies using leading global AI models to build products and services shaped by local expertise. A health technology firm might apply Australian clinical knowledge to radiology or workflow tools, while an agricultural technology company could develop solutions based on our uniquely Australian experience with harsh weather conditions. The models may be global, but the expertise and export opportunity can be Australian.We must also examine how existing industries and competitive advantages can support AI-adjacent opportunities. Critical minerals give us an entry point into the supply chains supporting advanced technology and AI. Add our renewable energy potential, stable institutions and proximity to Asia, and Australia has the foundations to become a powerhouse across the AI value chain – but we need to move quickly. Deloitte Access Economics has estimated that Australia has the potential to become a digital infrastructure hub for the Asia-Pacific and expand its data centre capacity to power the region with at least 3.1 gigawatts of high-quality compute. The potential economic uplift is significant: up to $134 billion in additional GDP over 25 years and an average of 14,300 additional jobs a year.Sovereignty as a guiding principleThis is not an argument for Australia to participate in every part of the semiconductor or AI supply chain. We cannot and should not attempt to build every chip, model, platform and component. Nor should we assume that relying entirely on capability developed elsewhere will deliver the best economic outcome or give Australia the role it needs in the global AI ecosystem. Stu Scotis is Global Agentic AI Leader at DeloitteSovereignty is a supporting lens that can guide policy and help determine what should be built here in accordance with our competitive advantages and national priorities. Protecting Australia’s interests also means being clear-eyed about open source and open weight models. These technologies can accelerate innovation, reduce reliance on a small number of overseas providers and give Australian organisations more control over how AI is adapted and deployed. But openness does not remove the need for safeguards. Australia will need the capability to test and secure the models it uses, particularly in sensitive or critical settings.That ambition will not be delivered by government alone, or by business acting in isolation. Business will make many of the investment calls and turn ideas into products. Universities and research institutions will supply much of the talent and intellectual property.States and territories will be central because many of the practical decisions sit with them, like energy access and planning approvals. The Federal Government’s role is to give investors and innovators enough clarity to move while providing the guardrails required for the AI ecosystem to retain its social licence. Speed matters, but so does permission to move. Data centres need power and water. AI-enabled services need access to data and the trust of users. Workers will want to know how their roles will change, and communities will want to know what they gain from the infrastructure being built around them.Public confidence should not be viewed as a handbrake to ambition, because it is what will make the ambition possible. Without it, projects take longer, investment becomes harder and the technology is deployed more cautiously than it needs to be.Australia is not starting from scratch. It has the natural resources, capital and institutional strength needed to participate seriously in the global AI economy.But those ingredients will not turn into an AI advantage by themselves. The task now is to align them behind a clearer national ambition, and to move quickly enough for that ambition to protect Australian interests while building our collective economic prosperity. Joana Valente is Technology and Transformation Lead Partner for Federal Government at Deloitte Australia. Stu Scotis is Global Agentic AI Leader at Deloitte. Disclaimer     This article contains general information only, and none of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms or their related entities (collectively, the “Deloitte organisation”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of DTTL, its member firms, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication.About Deloitte  Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organisation”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.The Australian partnership of Deloitte Touche Tohmatsu is a member of Deloitte Asia Pacific Limited and the Deloitte organisation. For more information, please visit our web site at https://www2.deloitte.com/au/en.html.Liability limited by a scheme approved under Professional Standards Legislation.© 2026 Deloitte Touche Tohmatsu.  More CoverageTech workforce is the key to our nation’s AI futureJOHN O’MAHONY and NICK HULLAI infrastructure: why private options are gaining groundSteve Hebert, Matt Jacobs and Nicholas Merizzi Govern AI before it governs youJohn MarcanteRead related topics:Artificial Intelligence