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Australia as an AI Middle Power – The Diplomat

by Asia Today Team
October 2, 2026
in Business
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Australia’s function within the frontier world of synthetic intelligence was the main target in Canberra final month, with two occasions bringing collectively lots of of protection, diplomacy, improvement, and business consultants. The Australian Strategic Coverage Institute (ASPI) gathered the nationwide safety and protection neighborhood for an AI Masterclass on September 14. The following day, the Improvement Intelligence Lab’s Scenario 2026 explored how AI can remedy Indo-Pacific improvement challenges.

The occasions revealed a rustic grappling with what it means to be a center energy within the age of AI. As ClearAI founder Jisoo Kim put it, at a time when AI is growing at breakneck velocity and reordering economies and societies, “The place on this ecosystem, the place on this international financial system is Australia going to sit down?”

Judging from opinion polling, many Australians would most likely choose that AI had by no means been invented. However now that the cat is out of the bag, Australia wants to consider what it means for its safety and prosperity, and the dangers and alternatives it brings.

As a center energy, with a variety of belongings and assets, Australia will not be powerless within the face of those modifications. It has some capability to affect the brand new world that AI is making.

Assistant Minister for the Digital Financial system Andrew Charlton addressed this overtly. Asking how center powers handle AI, he recognized 4 performs: alignment with a superpower, leverage within the worth chain, competitors via totally different fashions and capabilities, and sovereign functionality. Charlton acknowledged that Australia is pursuing all 4 concurrently.

Shadow Minister for Business and Sovereign Functionality Andrew Hastie broadly agreed, significantly emphasizing the U.S. relationship as Australia’s “line to sovereignty.” Hastie advised utilizing Australia’s relationships in Washington to encourage a hyperscaler to spend money on Australia. 

With out information facilities, frontier labs, and expertise, Australia stays depending on what comes via submarine cables, and this may occasionally make Australia a “supplicant state” – with Hastie utilizing the analogy of the nuclear race, the place as soon as the U.S. satisfied Australia to withdraw, it has been reliant on Washington ever since. He gave a way of the stakes for Australia: nations with AI will pull forward and Australia will fall additional behind. 

In accordance with Minister for Business and Innovation Tim Ayres, the federal government’s “goal is to not do every thing, however to make ourselves the indispensable nation.” That’s, to search out what Australia can excel at on this new ecosystem and make it the nation’s comparative benefit. 

Australia brings belongings in coverage experience, expertise, and belief. Ayres additionally highlighted capabilities in chip packaging, quantum computing, and specialised datasets, alongside institutional benefits similar to corporations and unions working collectively within the nationwide curiosity.

All through the discussions, there have been a number of requires Australia to work with different nations together with the UK, Canada, Japan, South Korea, and India.

Because the American Enterprise Institute’s Ryan Fedasiuk put it, center powers have a path ahead in the event that they “conceive of AI as a worldwide megaproject which everybody can contribute to.” Importantly, “Sovereignty doesn’t imply autarky. Sovereignty means having the ability to select your personal dependencies quite than having them foisted on you.”

Aditya Maheshwari of the Indian Institute of Administration Indore outlined how center powers may energize their very own ecosystems via expertise, analysis, joint tasks, and shared computing amenities, quite than competing with the US and China on frontier fashions.

Australia additionally has appreciable alternatives to form worldwide requirements. Australian Alerts Directorate Director-Common Abigail Bradshaw argued that having a spot within the AI business strengthens Australia’s sovereignty and offers it a voice in international requirements.

Australian AI Security Institute head Kate Conroy highlighted Australia’s potential to punch above its weight internationally, drawing on its expertise in growing requirements adopted globally. 

Australia’s Ambassador for Cyber Affairs and Important Know-how, Jessica Hunter, argued that Australia has the belongings, relationships, and company to be a shaper of the AI world quite than merely a client.

It’s fascinating that this proactivity is being actively inspired by frontier labs, together with OpenAI Vice President Ann O’Leary and Anthropic Particular Envoy and former U.S Ambassador to Australia Jeff Bleich.

An vital component of being an AI center energy is to consider the way it contributes to improvement outcomes. As Minister for Worldwide Improvement Anne Aly put it, “The worth of applied sciences lies in the best way that folks’s lives are improved.” The problem is “to make sure the advantages of rising applied sciences are shared extensively quite than used to widen inequalities.” 

By way of this lens, Australia’s Division of Overseas Affairs and Commerce sponsored a contest on what Indo-Pacific improvement problem AI may remedy within the subsequent 5 years, gathering greater than 100 proposals. From catastrophe warning programs to healthcare and defending Pacific maritime zones, there are numerous methods Australia can use AI to contribute as a improvement associate. 

Instances of change are typically good for center powers, enabling them to play an entrepreneurial function. These discussions demonstrated the advantages of Australia inserting itself into the AI financial system, shaping international security requirements and enabling optimistic diffusion of know-how throughout the area.



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