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The Complex Path to Digital Sovereignty

Today

Digital sovereignty is all about control, who owns your data, where it's stored, and how it's used. In Australia, we've often focused on keeping data within our borders, thinking that's the safest way to protect it. With the recent, rapid, emergence of AI, that approach doesn't quite cut it. The real problem isn't just where our data resides, it's how AI uses it, learns from it, and makes decisions affecting us.

Australia stands at a crossroads, and how we handle these challenges will go a long way in shaping our future.
 
The Cloud Dilemma

Cloud technology allows us to store and process data from any part of the world, with speed, efficiency, and scalability. While businesses use these platforms, they often don't understand how they work.
This creates a challenge. Organisations can use powerful AI and analytics tools but may not have full control over the algorithms or infrastructure behind them. For example, AI models used to prioritise patients for medical treatment or suggest healthcare plans might be hosted in the cloud. However, these models could be built using criteria that don't reflect Australian values or priorities.
How can we ensure these systems are transparent and accountable? How can we trust them if we don't fully understand or control these tools?
 
The Power Imbalance of AI

Large cloud providers do more than store data, they supply the tools that organisations use to analyse and act on it. This creates a power imbalance that presents challenges for Australia.
In sectors like finance or retail, AI systems from foreign cloud providers might be used to make decisions, like approving loans or recommending products. If these systems prioritise factors like profit margins over local needs, they may not always reflect what's best for Australian consumers.
AI also relies on large amounts of data to improve. When Australian data is used to train global AI systems, it raises questions about control and accountability. Who decides how this data is used? Who benefits from it? The term data colonialism highlights this issue, where large corporations extract data from countries like Australia, profit from it, and offer little in return in terms of control or direct benefit.
 
Building Local AI for a Better Future

To take charge of our future, Australia needs more than just rules about where data is stored. We need clear laws around how AI systems use our data and accountability for the decisions they make.

Here's what we can do:

Invest in Aussie AI: Developing AI here at home means creating systems reflecting our culture, laws, and values. These tools would be built for us, not for someone else's bottom line.

Advocate Clear Regulatory Frameworks: Australia needs policies that protect our data but also encourage innovation. This means making sure laws are clear and practical, balancing security and progress.

Grow Local AI Skills: It's not just about tech, it's about people. We need to invest in training and education to build local skills and get the community involved in innovation.

Demand accountability: Businesses and governments in Australia need to have a say in how their data is used by AI systems. If these systems affect Aussies, we need transparency in how they're built.

Join the global conversation: While focusing locally is key, we can't ignore the global stage. Australia should push for international agreements on AI ethics and standards to protect our interests.


Rethinking Sovereignty

Digital sovereignty isn't just about keeping data on Aussie soil, It's about owning how that data is used and ensuring AI systems work for our benefit.
As AI becomes more central to everyday life, Australia has a real opportunity to set the standard for what sovereignty looks like. But to do that, we need to shift the conversation, from just where data is stored to who holds the power and how that shapes our future.
 

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