Neural Notes: Australia’s AI year in review
In this week’s column, we look back on the highs and lows of AI in Australia, from government regulation, to raises, and major acquisitions.
Welcome back to Neural Notes, a column where I look at some of the most interesting AI news of the week.
In this issue, we’re blowing the timeline out a little further to look at how AI has fared in Australia in 2024. From government initiatives and regulations, to major acquisitions, the year has certainly had its wins and challenges.
Government AI regulation
The past couple of years have seen the Australian government cop some heat over its arguably slow approach to AI regulation.
Things sped up in 2025 with Labor unveiling its AI Regulation Roadmap. This included introducing mandatory rules for high-risk AI applications and emphasised transparency, accountability, and consumer protection.
Building on this, September saw the introduction of proposed mandatory AI guardrails for high-risk AI use. These guardrails focus on testing and transparency requirements, accountability measures, and risk management protocols.
Additionally, the Digital Transformation Agency released a policy for the responsible use of AI in government, This policy aims to embrace AI benefits while strengthening public trust and enhancing governance in government AI use.
Big dollars for Australian AI startups
The Australian AI startup scene also saw massive growth and investment in 2024.
Some notable funding rounds include:
- SpatialGPT: $5.1 million for AR/VR AI applications
- Brainfish: $3.85 million for AI-powered customer support solutions
- Andromeda Robotics: $3 million for AI-powered humanoid companion robots
- TrueState: $1.5 million for AI application templates
- Deeligence: $1 million for AI-driven legal due diligence
Canva’s acquisition of Leonardo.ai
This time last year Leonardo.ai saw a mammoth $47 million raise. This earned the startup a spot on our Australian AI startups to watch list, and we were quickly proven correct.
One of 2024’s most significant AI developments was Canva’s acquisition of Leonardo in July. By then, its users had ballooned to more than 19 million.
The deal, reportedly worth over $120 million, saw the Australian SaaS unicorn integrate one of the country’s fastest-growing AI startups into its operations.
Not bad for a startup that had been founded just 18 months prior.
Industry adoption and challenges
However, the year was not without its challenges.
Several incidents highlighted ongoing concerns about the potential risks of AI in eroding trust in institutions and scientific communication.
The CSIRO’s Cosmos magazine faced criticism for lack of transparency in its AI trial, leading to a temporary pause in the project. This controversy emerged just four months after Cosmos made five of its eight staff redundant, raising questions about the motivation behind implementing AI in journalism.
A special parliamentary inquiry into AI use in Australia called for dedicated legislation to regulate high-risk technologies, including generative AI products like ChatGPT and Google Gemini.
The 222-page report that came from the inquiry emphasised protecting democratic processes and workers’ rights while advocating for mandatory transparency and accountability measures for AI applications.
Additionally, the Australian Council of Trade Unions (ACTU) highlighted the importance of worker engagement in addressing the effects of AI on employmen. It highlighted the need for updated work health and safety laws to encompass AI-related risks.
The rapid growth of generative AI has also raised concerns about its potential use in spreading misinformation — and was also noted in the special parliamentary inquiry report — and eroding public trust in democratic institutions — particularly with an election year looming.
National AI Capability Plan
And while we may be racing towards the holidays, the federal government has already got a head start on its AI plans for 2025.
Earlier this week Minister for Industry and Science Ed Husic announced the development of a National AI Capability Plan.
At the heart of this plan is positioning AI as a crucial driver of Australia’s economic future. The plan aims to:
- Grow investment in AI
- Strengthen AI capabilities
- Boost skills in AI technology
- Secure economic resilience
This initiative builds on existing government efforts, including the creation of a network of AI Adopt Centres for upskilling SMEs and micro skill courses delivered through the CSIRO and TAFE.
The Australian Information Industry Association (AIIA) has welcomed this development, with CEO Simon Bush stating it represents a significant step forward in mapping out how Australia can move from being an AI laggard to a leader.
The plan is expected to contribute up to $600 billion annually towards Australia’s GDP by 2030. It will focus on reviewing existing state and federal government support mechanisms, boosting private sector innovation, identifying areas of research strength, and accelerating AI literacy.
However, concerns have been raised about the timeline for implementing the plan. With the review process scheduled to conclude at the end of 2025, the AIIA recommends bringing forward the review deadline to July 2025 to accelerate funding and implementation.
Considering how much has happened this year, we can certainly expect the 2025 AI train to be an even wilder ride.
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