Australia's Strategic Policy Talks and Tech Collaboration with Microsoft
In his recent visit to Washington, Prime Minister Anthony Albanese delved into discussions with President Biden about pivotal topics such as the dominance in cybersecurity, transitioning towards a sustainable future, and the ever-evolving strategic landscape of the Pacific. This theme of strategic competition was a clear undertone throughout their dialogues.
Responding to Australia's AI regulatory consultations, Microsoft announced a significant investment, planning to amplify its computing capacity in Australia by a staggering 250%. The tech giant's move is strategic, envisioning Australia as a cloud computing leader, especially with AI-driven demand predicted to surge by 2026.
Investment in Cybersecurity and Skill Development for the Digital Era
Australia's top online intelligence agency and Microsoft have embarked on an ambitious journey to bolster the nation's cyber defences.
Meeting the cloud computing service demand boom: Microsoft’s cloud computing expansion will meet growing demand for cloud computing services, which are expected to almost double from AU $12.2 billion (US $7.7 billion) in 2022 to AU $22.4 billion (US $14.1 billion) in 2026, according to research from International Data Corporation commissioned by Microsoft (Figure A).
The collaboration, dubbed the Microsoft-ASD Cyber Shield (MACS), signifies a $5 billion investment aimed at safeguarding networks from sophisticated threats. This initiative reinforces the deep-rooted partnership between the tech powerhouse and the Australian government.
Microsoft’s cyber security partnership is designed to combat the growing frequency and severity of cyber attacks in Australia, including from nation-state actors. ASD’s Cyber Watch Office received more than 76,000 cybercrime reports in the 2021–22 financial year, up 13% (Figure B).
Microsoft's investment aligns with a period of heightened security cooperation between Australia and the US. This collaboration has been influenced by the Five Eyes security partners' reservations about over-dependence on Chinese technology. Mike Burgess, the Director-General of the Australian Security Intelligence Organisation, pinpointed China as a focal point of concern during an uncommon tech summit in Silicon Valley, which he attended alongside his Five Eyes peers from the US, UK, Canada, and New Zealand.
Furthermore, recognizing the essence of skilled manpower for a thriving digital economy, Microsoft, in tandem with the Australian government, emphasised skill and capability development. This commitment is evident in their bold aspiration to facilitate 1.2 million tech jobs in the country by 2030.
Economic Prospects of AI and the AUKUS Framework
A collaborative report from Microsoft underscores the transformative potential of generative AI for Australia. With rapid adoption, this evolving technology could potentially contribute an impressive A$115 billion to the economy annually by 2030.
On the defence front, the Biden-Albanese dialogues focused on enhancing defence collaborations, hinting at potential tripartite initiatives with Japan. Their discussions spotlighted the significant roles AI and cybersecurity will play within the AUKUS alliance, targeting the development of advanced defence technologies.
Bilateral Focus on Indo-Pacific Stability and Future Engagements
Ms. Rapp-Hooper, during a press briefing, highlighted the defence and security cooperation shared by the US and Australia. She affirmed their collective goal of upholding peace and stability, especially in the Indo-Pacific region. Prime Minister Albanese's US tour accentuated the future-focused approach of the two nations, with artificial intelligence and space collaborations at the forefront.
Key revelations from the visit encompassed clean energy projects and the establishment of resilient mineral supply chains.
During the Prime Minister's visit to Washington, the primary focus of the state visit was underscored as being on innovation and collaborative investment, as highlighted by Ms. Rapp-Hooper this week:
“Several announcements related to new technology cooperation, particularly on artificial intelligence, and highlighting new cooperation on space issues”
White House advisor on Indo-Pacific Strategy, Mira Rapp-Hooper, remains optimistic, stating:
"We remain hopeful and enthusiastic that congress move at the quickest possible pace."
Echoing the sentiment, Mira Rapp-Hooper, White House advisor on Indo-Pacific Strategy, showcased her optimism, emphasising the urgency for swift congressional action.
