Despite its relatively small size, Australia’s technology sector is increasingly recognised as a significant driver of economic growth, according to HSBC Australia chief economist Paul Bloxham. While the digital economy is valued at approximately $160 billion, representing 6 per cent of GDP, the core technology sector currently contributes only 0.8 per cent of GDP.
Artificial intelligence-related research and development has seen substantial growth, surging by 142 per cent in just two years to reach $670 million. Currently, over 1000 AI firms are operating within Australia. Furthermore, investment in data centres is projected to rise to 2 per cent of GDP by 2029, indicating the expansion of digital infrastructure to support the sector’s growth.
Bloxham highlighted that Australian software licence exports have increased twentyfold over the past decade, reaching $8 billion, which accounts for 1 per cent of total exports. He pointed to tech companies such as Atlassian, WiseTech, and Canva as examples of successful Australian tech firms. Atlassian is a collaboration software company. WiseTech Global develops and provides software solutions to the logistics industry.
Bloxham noted the importance of technology in addressing Australia’s productivity challenges. However, only 3 per cent of small to medium enterprises (SMEs) report broad AI use, with 22 per cent reporting limited use. Retail trade, health, education, and hospitality industries are leading in AI adoption, reflecting the growing use of generative AI assistants and AI in data processing.
