US tech giant OpenAI’s decision to set up its its first Australian office in Sydney is a “kick in the guts” to Victorian entrepreneurs, state shadow Digital Transformation minister Brad Rowswell said on Saturday in a push for ‘AI first’ policy.
The state opposition seized on last month’s announcement as a sign the Allen government had missed a generational technology opportunity and evidence Victoria is slipping behind on digital infrastructure.
OpenAI opted for Sydney to be closer to customers headquartered in Sydney like the Commonwealth Bank and the University of New South Wales, but said it also saw access to developers and a potential data centre boom.
“NSW’s success is a kick in the guts for every entrepreneur hoping to build or grow an AI or tech business in Victoria,” Mr Rowswell, who also holds the shadow Public Service Innovation portfolio, said.
“Victoria has the talent and potential to become Australia’s AI capital — it just needs to be backed by a government that recognises that potential.”
The state opposition warns Victoria is slipping behind, with Sydney already home to triple the amount of data centres planned, in operation or under construction compared to Melbourne.
It says the government should adopt the Australian Information Industry Association’s (AIIA) ‘AI first’ proposal, which would mimic the strategy and skills development plan for cloud computing state and federal governments put in place a decade ago.
The approach would require Victorian government agencies to at least consider AI solutions in project planning and procurement, and also introduce guardrails like risk management and scaling pilots.
“The Victorian public sector was as cautious about the adoption of cloud as it currently is about AI,” the AIIA proposal says.
“In the early 2010s, the Victorian Government signalled a shift towards cloud-first procurement. A consultation draft of its updated ICT strategy stated that ‘cloud-based business-technology services will be evaluated first for new and renewed systems,’ marking a clear policy-led pivot.
“That policy laid the groundwork for a more agile and efficient public sector, that was cloud enabled, backed by guidelines and controls.”
Do you know more? Contact James Riley via Email.