

Labor's AI vision for Melbourne

Paul Smith
Paul SmithTechnology Editor

Key Points

  • A Labor government would set up a $4m AI centre of excellence in Melbourne.
  • The centre will combine business and academic expertise, with an ethics focus.
  • Labor is pressuring global tech firms to invest in local companies developing AI

Labor has chosen Melbourne to be the home of a planned $4 million national centre of excellence for artificial intelligence, forming a partnership with the Victorian government to target AI development initiatives that could benefit society as well as commercial interests.

The Opposition has also begun putting pressure on international technology firms operating venture funds in Australia to direct some of their money towards local companies working on socially progressive AI initiatives.

Shadow Treasurer Chris Bowen said it was important for Australia to get on with developing a strong plan for developing artificial intelligence. Alex Ellinghausen

The plan to create an AI centre was first flagged by Labor's shadow Minister for the Digital Economy Ed Husic at The Australian Financial Review's annual Innovation Summit last year, but in addition to $3 million of federal funding, the Victorian Labor government has promised $1 million as part of its push to have the centre in Melbourne.

In addition to plans to ease start-ups' problems with research and development incentives, announced last week, it is the latest attempt by Labor to position itself as more forward thinking and tech-savvy than the government.

The government has remained largely silent on any innovation-related policy initiatives.


Shadow Treasurer Chris Bowen, Victorian Treasurer Tim Pallas and Mr Husic plan to announce the AI investment in Melbourne on Tuesday, claiming it will be a platform for collaboration between government, educational institutions and industry.

They will frame the centre as being a pillar in a push to make Australia a leading force in propelling the development of ethical AI, and part of a future National AI strategy.

Victorian Treasurer Tim Pallas said Melbourne is the natural home to a national centre for artificial intelligence. Eamon Gallagher

Citing a Google-commissioned study, which found the correct application of AI and automation could provide the Australian economy with a $2.2 trillion boost, Mr Bowen was critical of the government's failure to discuss progress on an earlier pledge to develop an ethical national AI roadmap.

"While other governments are pressing ahead with the application of AI within their countries, the Coalition seems to be taking its sweet time on this," he said.

"Even the head of the CSIRO believes the country is being left behind, and this can’t be left to chance. We need a centre like this to draw together thinking and AI related work across the country and put it to work for our economy and community.

"Tech can’t privatise the profits and socialise disruption, expecting government to pick up the tab for dealing with the after effects."

Ed Husic, Shadow Minister for the Digital Economy

“Importantly, we need to ensure we unite business, unions and governments on this, thinking ahead about the impact of AI and making sure everyone benefits.”


In a political climate where the societal impacts of global technology giants are being viewed with increasing suspiscion, the Financial Review understands that Mr Husic has made preliminary approaches to global firms operating local VC funds, to suggest they make some investments in AI companies that are pursuing ideas related to community benefits.

While the plan is to work with companies, Labor is looking into ways it could change the Venture Capital and the related Early Stage Venture Capital Limited Partnerships rules to enforce more cooperation if necessary.

Ed Husic is attempting to encourage global tech companies to invest in local AI start-ups aiming to provide social good. Jesse Marlow

"Tech can’t privatise the profits and socialise disruption, expecting government to pick up the tab for dealing with the after effects," Mr Husic said.

"I absolutely want to work with the tech sector on this, and I believe that they understand the need to do this, but we are also not ruling out using legislative mechanisms if we need to progress this further."

As well as corporate and academic collaboration projects, the Melbourne centre will incorporate a new AI-focused start-up accelerator, to nurture emerging companies in a similar way to the fintech-focused Stone & Chalk in Sydney.

The AI centre of excellence will be seen as a win by the Victorian Labor government, which has consistently looked to play up its credentials as the Australian home of some of the world's fastest growing tech companies, as well as a slew of local start-ups.

"The Andrews Labor government is ready to partner with the next Federal Government because Melbourne is the natural home to a national centre for artificial intelligence," Mr Pallas said.

"We are already attracting significant tech investment and we want to make Melbourne the drawcard for the best and brightest talent in the world.”

Paul Smith writes on all areas of technology from our Sydney newsroom. Connect with Paul on Twitter. Email Paul at
Paul Smith

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