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Australia to Increase Spending on AI to $3.6 Billion by 2025

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TL; DR
  • Australia plans to increase its spending to reach $3.6 billion by 2025.
  • The use of smart technology and AI saw an increase due to the pandemic.
  • Banking, retail, and other sectors are expected to increase their investments in AI as well.

The race towards a future wherein the one with the smartest technologies wins is among us. Australia plans to increase its efforts by reaching total spending of $3.6 billion by 2025.

Artificial intelligence used to be mainly for software use but with the help of robots, AI has also made its way to the hardware sector assisting factories, manufacturing plans, libraries, and even restaurants.

The use of smart technology used to be seen as solely a competitive advantage but now, it is deemed more a necessity if a business wants to stay competitive in the modern world. The pandemic reminded us that in order to survive, you’ll have to adapt.

During the pandemic, businesses that functioned purely traditionally were hampered while businesses that were able to adapt to modern technologies were able to find a way. Since the technology was highlighted in a major way, the next step is to make the systems more efficient.

Australia Acknowledges the Importance of AI

Australia acknowledges that AI systems are very important in the country’s efforts to move forwards. The country expects to reach $3.6 billion in spending by 2025 as per IDC, a market research firm.

The IDC says that Australia’s spending on AI systems represents a 24.4% compound annual growth rate (CAGR) from 2020 to 2025. The rates are only expected to increase as 67% of Australian small businesses in 2022 said that they were going to spend higher on IT.

The different fields of investment the IDC anticipates spending to increase include the following; cloud, cybersecurity, PCs, and laptops.

Leading industries that are expected by the IDC to shell out a lot of money in AI include the federal and central government, banking, professional services, and retail. When it comes to the banking industry, AI spending is expected to cover the following:

  • Customer service (program advisors and recommender systems)
  • Operations (fraud analysis and detection
  • Security (advanced threat intelligence and prevention system)

AI is also expected to play a huge role in other sectors as well. These include the retail sector wherein AI is used for “extended customer service agents and purchasing experts, and product recommendations.”

Australia Plans to be Prepared for the Future by Investing in AI

As a growing trend, more and more companies are finding positive use cases for how AI can help their business grow. Aside from automation, artificial intelligence is also expected to carry out intelligent decision-making tasks including inventory management, data analysis, and consumer handling.

Australia acknowledges the benefits of AI and is prepared to spend a little bit more moving towards the future to make sure its citizens aren’t left behind when it comes to the latest technologies.

Author

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