Amazon Warns of 'Two-Tier Economy' as Tech Giants Increase AI Lobbying
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Details
- Date Published
- 2 Oct 2025
- Priority Score
- 4
- Australian
- Yes
- Created
- 3 Oct 2025, 01:16 pm
Description
Google and Amazon have both ramped up their public relations campaigns on AI.
Summary
The article highlights the increasing lobbying efforts by major tech companies like Amazon and Google in Australia to promote AI adoption. Amazon's report warns of a 'two-tier economy' resulting from uneven AI integration, which could disadvantage less agile competitors. This issue is critical as it could influence economic disparities and highlights the potential socio-economic risks associated with AI. The piece also discusses the Australian Senate inquiry into AI's impact on the creative sector and debates around intellectual property rights, underscoring the importance of governance frameworks that address these challenges. These developments are significant to Australia's AI safety policy landscape, with implications for managing rapid technological change.
Body
Balancing the merits of artificial intelligence with the risks it poses to workers and creatives is a debate which rages on, all while major US tech companies ramp up their public relations campaigns — warning of the emergence of “two-tier” economies without greater AI take-up.Amazon recently laid out its vision for a future Australia that’s “powered” by artificial intelligence.Thereport,“Unlocking Australia’s AI potential”, is one in a series of country-specific reports commissioned by Amazon Web Services (AWS) and produced by UK consultancy firm Strand Partners. The latterregisteredon the European Union’s lobbyist register in June this year.Related Article Block PlaceholderArticle ID: 1223358Inside Meta’s fight to change climate reality… all so it can frantically expand a risky AI programKetan Joshi5In apress releaseaccompanying the release of the report in late August, AWS warned of the emergence of a “two-tier economy”, where “less agile competitors” are being outpaced by “tech-driven startups [that] innovate more rapidly”.Independent. Irreverent. In your inboxGet the headlines they don’t want you to read. Sign up to Crikey’s free newsletters for fearless reporting, sharp analysis, and a touch of chaos*indicates requiredEmail Address*By continuing, you agree to ourTerms & ConditionsandPrivacy Policy.“Without deeper integration, these businesses risk missing out on the full potential of AI, falling behind more agile competitors, and driving a two-tier economy that will shape Australia’s prosperity for decades,” the press release said.AWS announced earlier this year it would increase its planned investment in Australia by $7 billion to $20 billion by 2029. The extra money would “go towards expanding data centre infrastructure and supporting growing demand for artificial intelligence and cloud computing”,SmartCompanyreported in June.Google, too, has continued to boost AI, writing in a blog post last month that facilitating the use of AI by small and medium-sized businesses in Australia should be a “policy gold standard”.“Small and medium-sized businesses (SMBs) are the largest employers in most economies, and AI is a powerful tool to boost their productivity,” the postsaid. “Governments should help entrepreneurs access and adopt AI solutions through grants and skilling programs. The Australian government’s AI Adopt Centres help SMBs adopt AI services responsibly and grow their businesses.”Earlier this week, a Senate inquiry on Australia’s national cultural policy examined the impact of AI on Australia’s creative landscape. Many of the creatives who appeared at the hearings were critical of the Productivity Commission’s alleged failure to consult with artists before recommending an exemption to theCopyright Actfor text and data mining for AI development.“You, I would put to you, are waving the white flag rather than standing up for our creative industries; you’re saying very clearly it’s not realistic that you could stop this. Copyright in this country is worth protecting,” Liberal Senator Sarah Henderson told the hearing, according toGuardian Australia.