Capability 4.1.1
Support & Investment Availability
Definition
The strength of the national AI innovation ecosystem (including startups, investors, incubators and accelerators) to support and scale commercially viable products and services, including the ability to convert Research and Development (R&D) into market-ready offerings.
Examples
- AI-focused accelerators, national venture funding schemes and early-stage research translation programs (e.g. Main Sequence Ventures, Launch Vic AI streams).
Indicators
- Dollars invested in AI (by stage)
- Number of AI-related deals
- Share of public vs private funding
- Volume of government grants
- FDI into domestic AI firms
National AI Plan
PLAN COMMITMENT
Moderate commitment
Recognises $460 million in existing funding already available or committed to AI and related initiatives, commitment to an AI accelerator Coorporative Research Centre (CRC) round (no specifics on funding), commits $39.9 million to strengthen Australia’s AI ecosystem, which includes expanding the National AI Centre (NAIC), recognises existing broader technology-related commitments, including $1 billion through the National Reconstruction Fund and notes availability of the Research and Development Tax Incentive Program (Action 2). Commits to attracting investment to Australia, recent Anthropic and Microsoft MOUs are examples of implementation (Action 3). Despite the size of these funding commitments, this is assessed to be moderate commitment by the government in the plan (as compared to investment in other jurisdictions, especially by government), indicating a preference for maturation of this capability to be driven by market forces. Moderate commitment by government in the plan aligns roughly with the recommendation to close this critical gap. Greater and ongoing attention is warranted given this capability provides the enabling environment for all other capabilities.
Stocktake
Australia’s artificial intelligence ecosystem: growth and opportunities. National Artificial Intelligence Centre, Department of Industry, Science and Resources. 25 June 2025. https://www.industry.gov.au/publications/australias-artificial-intelligence-ecosystem-growth-and-opportunities
Australian universities turn to AI super computers. ACS. 3 June 2025. https://ia.acs.org.au/article/2025/australian-universities-turn-to-ai-supercomputers.html
Accelerating Australia’s AI Agenda. Business Council of Australia. 2 June 2025. https://aiagenda.bca.com.au/
Cut Through Quarterly Q2 2025 Report. Cut Through Ventures. 8 July 2025. https://www.cutthrough.com/insights/cut-through-quarterly-2q-2025
Startup Muster 2024. Startup Muster. December 2024. https://www.startupmuster.com/reports
Australia's Opportunity in the New AI Economy. Microsoft. 7 November 2024. https://news.microsoft.com/en-au/features/new-research-identifies-australias-most-promising-opportunities-in-the-new-global-ai-economy/
Australia’s artificial intelligence ecosystem: Catalysing an AI industry. CSIRO. December 2023. https://www.csiro.au/-/media/D61/AI-Ecosystem-Catalysing-an-AI-Industry-Report/Aus-AI-Ecosystem-Report-2023.pdf
Science, research and innovation (SRI) budget tables. Department of Industry, Science and Resources. 18 October 2024. Updated 15 August 2025. https://www.industry.gov.au/publications/science-research-and-innovation-sri-budget-tables
AI now fastest growing area for business R&D. Australian Bureau of Statistics. 22 August 2025. https://www.abs.gov.au/media-centre/media-releases/ai-now-fastest-growing-area-business-rd
Asia/Pacific AI Maturity Study 2024. IDC. May 2024. https://www.intel.com/content/dam/www/central-libraries/us/en/documents/2024-05/idc-infobrief-asia-pacific-ai-maturity-study-2024-australia.pdf
OECD Financing SMEs and Entrepreneurs Scoreboard. OECD. 2023. https://www.oecd.org/content/dam/oecd/en/publications/reports/2023/03/oecd-financing-smes-and-entrepreneurs-scoreboard-2023-highlights_6060c026/a8d13e55-en.pdf
Is the Stocktake missing evidence?
Share additional information for potential future Assessments