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Australia’s National AI Plan to boost skills, safety & business

Thu, 4th Dec 2025

The Australian government has released a National AI Plan aimed at supporting the practical deployment of artificial intelligence across industry, improving national coordination, and strengthening workforce skills. The plan earmarks AUD $29.9 million for an AI Safety Institute and over AUD $460 million for existing AI programs, while also extending support for businesses through the AI Adopt Centre network.

Industry support

Industry groups highlighted the plan's focus on translating AI research into commercial outcomes and supporting small and medium enterprises (SMEs). ARM Hub, which specialises in industrial AI adoption, welcomed the new measures.

"The plan strengthens how Australia supports industrial AI adoption," said Professor Cori Stewart, CEO and Founder, ARM Hub.

The expanded role of the National AI Centre (NAIC) in coordinating all four AI Adopt Centres was identified as a key action. Under the plan, the $17 million AI Adopt Programme will fall under NAIC oversight, with the aim to provide more targeted help for SMEs implementing AI, regardless of their sector or size.

Stewart noted that ARM Hub delivers practical deployment support across multiple sectors, including advanced manufacturing, medical technology, defence, clean energy, metal fabrication and enabling technologies such as robotics and embedded AI.

Skills focus

The National AI Plan places a significant emphasis on developing workforce capabilities. Measures include new skills programs delivered through TAFE and other training providers. According to Stewart, this recognises the need for floor managers and production staff to develop the confidence required to succeed in an AI-enabled workplace.

"The plan emphasizes TAFE and workforce programs alongside research institutions, recognising that floor managers and production staff across industrial sectors need AI confidence to succeed in an AI-enabled economy," said Stewart.

The plan also sets a direction for engagement between industry and government to ensure that upskilling is accessible to the broader workforce, aiming to build a labour market equipped for technology-led change.

Sovereign capabilities

Support for sovereign AI capability features as a foundational element. Investments will be made in local infrastructure and the development of a GovAI framework addressing security needs for industrial businesses deploying AI and robotics.

"The plan's investment in local infrastructure and the GovAI framework addresses security concerns for industrial businesses working with robotics and AI, providing clarity for companies investing in advanced technologies," said Stewart.

ARM Hub said this increased clarity is needed as AI becomes more deeply embedded in supply chains and production systems.

Safety emphasis

The establishment of an AI Safety Institute received wide attention. The body will monitor, test and disseminate information on emerging AI capabilities, including risks and harms, and support regulators as AI's use expands in critical infrastructures and industrial contexts.

ARM Hub said it will continue supporting industrial businesses nationally by supplying practical guidance, data infrastructure support, and facilitating connections to the broader AI ecosystem.

Technology sector response

Microsoft Australia endorsed the government's emphasis on human-centric AI and its focus on workers' involvement in shaping future employment.

"We've long believed that AI technologies are most impactful when designed and deployed to put people first and propel human ambition. We're encouraged to see the National AI Plan put everyday Australians at the heart of its vision for how AI will transform our society and economy, with a particular emphasis on skilling and ensuring workers are brought along the journey," said Sarah Carney, National Technology Officer, Microsoft Australia & New Zealand.

Carney welcomed the government's plan to upskill the existing workforce and stressed the need for "deep collaboration and continued investment from government, industry and the education sector." She said worker representation in AI policy discussions was vital and supported the plan's intention to ensure this participation.

The plan's coordinated approach to fostering AI adoption aims to position Australia to "attract the required talent and investment to deliver on its promise," said Carney.