Australian authorities disagree over the response the country should take to the runaway success of the Chinese AI app DeepSeek. While some industry groups call for rapid action to support national AI innovation, the science minister urges caution.
The Tech Council of Australia, an industry body that includes Microsoft, Atlassian, Google, and IBM among its members, warned the government should “act now or risk Australia falling behind in AI development and adoption.” In a statement about the Australian government’s national AI capability plan, the TCA said, “DeepSeek’s reported breakthrough shows that the AI landscape is highly competitive and rapidly evolving.”
DeepSeek recently launched an AI chat app featuring a “reasoning” model comparable to OpenAI’s o1. The DeepSeek app quickly surged to the top of Apple’s App Store, causing a stir among American AI companies. Its debut rattled financial markets — NVIDIA and Microsoft stocks took a hit, as investor confidence in the U.S. AI makers dipped.
The Council emphasised its support for the national AI plan announced by the government in December but argued the country “cannot wait” until 2025 for it to be finalised. It recommended key priorities such as AI education, infrastructure investment, pro-innovation regulations, international collaboration, and research support.
In November, research from the industry group found that increasing total tech investment from 3.7% to 4.6% of the country’s GDP could contribute AUD $39 billion in productivity gains by 2035. “Realising these benefits will require the right policy settings and coordination with industry to ensure Australia is a competitive place to make and deliver technology products,” the council stated.
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The Australian Strategic Policy Institute, a prominent think tank, echoed the Council’s sentiment. It said that Australia “cannot continue the current approach of responding to each new tech development” and should instead focus on building its own sovereign AI capabilities. Like the Tech Council, the institute emphasised the need for a national strategy to secure AI’s role in defence, national security, an