Tech Giants Push AI Agenda as Amazon Warns of Economic Divide
SmartCompany
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Details
- Date Published
- 4 Oct 2025
- Priority Score
- 3
- Australian
- Yes
- Created
- 6 Oct 2025, 05:34 pm
Description
Amazon says Australia risks slipping into a “two-tier economy” if it doesn’t fully embrace AI — but creatives and lawmakers are pushing back.
Summary
Amazon has raised concerns about a potential 'two-tier economy' in Australia if it fails to adopt AI extensively, suggesting a significant impact on competitive business dynamics. This warning highlights AI's transformative potential and the economic risks associated with its uneven implementation. Google and Amazon advocate for policies to enhance AI accessibility, particularly among small and medium-sized enterprises, positioning AI as crucial for productivity and growth. A related Senate inquiry explored AI's impact on Australia's creative sector, underlining tensions between technological advancement and creative industry preservation. The article provides valuable insights into the intersection of AI policy, economic implications, and creative sector challenges within the Australian context.
Body
Balancing the merits of artificial intelligence with the risks it poses to workers and creatives is a debate that 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.Related Article Block PlaceholderArticle ID: 324137ChatGPT adds in-app shopping, potentially changing how Aussies shop onlineDavid AdamsAmazon 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.In 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”.“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.Smarter business news. Straight to your inbox.For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free.*indicates requiredEmail Address*By continuing, you agree to ourTerms & ConditionsandPrivacy Policy.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”.Related Article Block PlaceholderArticle ID: 318309Australia lands $20 billion AWS data centre deal as Albanese backs AI pushTegan Jones1“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.This article was first published byCrikey.Stay in the knowNever miss a story: sign up toSmartCompany’sfree daily newsletterand find our best stories onLinkedIn.