We are a Taker, Not a Maker.

With so much weak analysis—mostly performative cheerleading or partisan complaining—surrounding the Federal Government’s AI Plan, I couldn’t help chiming in.

The cheerleaders are celebrating with buzzwords: “democratising benefits,” “keeping Australians safe.” The critics are lamenting weak legislation or arguing that “mapping” capability isn’t the same as investing in it.

Let’s be honest. Australia is a consumer of generative AI, not a creator. We are not a manufacturer of AI chips. And we are not a global economic powerhouse with the muscle to impose legislation on global tech companies.

The Global AI Landscape

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The Maker

Prints money to win the war.

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The Regulator

Uses market size to force rules.

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The Adopter

Acknowledges reality. Rents the tech.

1. The “Anti-EU” Regulatory Play

The EU is regulating AI as if it owns the technology. They are drowning their SMEs in red tape. Australia’s plan implicitly recognises that we lack the market size (27m vs 450m people) to force global giants to bend to our will.

If we copy the EU’s heavy-handed “AI Act,” global tech companies will simply bypass us. Instead, this plan focuses on adoption. It’s a “Goldilocks” approach that keeps us in the game.

2. The “Mapping” Masterstroke (Strategic Procrastination)

Critics have attacked the section on Compute, where the government promises to “map” infrastructure rather than build it immediately. Actually, this is fiscally prudent.

The UK government recently purchased two High-Performance Computers for ~AUD $1.7 billion. That is a high-risk investment into an asset class that depreciates faster than a Tesla.

By “mapping” instead of “spending,” Australia effectively shorted the hardware market, avoiding the risks of buying white elephants. We are letting the private sector burn their capital on the hardware race.

3. Infrastructure is the New Manufacturing

The plan identifies “Green Data Centres” as our actual competitive advantage. We can’t compete with Taiwan on chips or Silicon Valley on LLMs. But we have abundant land, renewable energy potential, and stable laws.

The Verdict?

Stop looking for a “Moonshot” in this document. You won’t find one. What you will find is a “Safe Harbour” strategy that prioritises adoption over bureaucracy.

This plan admits that Australia won’t build the engine of the 21st century. And honestly, your company shouldn’t either. Take the hint from the Federal Government: Rent the compute, buy the API, and focus on the outcome.