Australia bans foreign AI, urges local tech investment
The Australian government has imposed a ban on foreign-controlled AI technology DeepSeek R1, igniting discussions on the need for enhanced domestic artificial intelligence capabilities.
Ahead of the federal budget announcement, the Australian Information Industry Association (AIIA) has submitted a recommendation urging significant investments in homegrown AI innovations. Trellis Data, an AI company based in Australia, has echoed this call in a bid to prevent the nation from lagging behind in adopting AI technologies globally.
Michael Gately, Chief Executive Officer of Trellis Data, expressed concerns about Australia's reliance on international AI solutions. "Australia can't afford to always rely on foreign AI that we neither control nor fully trust," he stated. Gately emphasised the need for ongoing investment in Australian AI to maintain data security, competitiveness, and stimulate economic growth. "We believe the Federal Government can lead the way by actually adopting and utilising more home-grown AI solutions," he added.
The government's recent ban on DeepSeek, a Chinese-developed AI, underscores growing apprehensions around data sovereignty and security. The technology was prohibited due to its perceived "unacceptable risks" on government devices, highlighting the importance of developing secure, local alternatives.
The reliance on foreign AI without adequate Australian substitutes poses significant security concerns. There is a potential risk that employees might resort to using unregulated tools or personal devices, thereby introducing new vulnerabilities. Trellis Data suggests that government-led investment in domestic AI could mitigate these risks by ensuring public sector employees use AI within a managed and compliant environment.
"A strong, sovereign AI sector isn't just an economic advantage—it's a national security imperative," said Gately. He stressed the necessity for a strategic approach towards AI that focusses on building rather than merely consuming technology. "The time to act is now," Gately insisted, urging immediate action to fortify Australia's AI landscape.
Trellis Data maintains a focus on creating secure AI applications tailored for high-security needs within sectors like government, law enforcement, and intelligence. The company's objectives align with broader national aspirations to elevate Australia to a leading position in AI development, prioritising data protection and economic empowerment rooted in Australian values.
