Speakers warned that regulation should balance with speed of innovation to avoid slowing Australia’s AI ambitions and job creation over the next two decades.

Industry leaders at a Sydney AI conference said Australia could become a global AI leader if policy settings support startup growth rather than hinder it.

Craig Scroggie, CEO of NextDC, argued that Australia’s political stability, clear regulations, and abundant energy create favorable conditions for energy-efficient data centers and AI infrastructure.

Paul Bassat emphasized Australia’s strength in application-level tech and the need for a larger cohort of homegrown tech companies to compete globally.

Angus Dawson of McKinsey urged adopting a US-style model of light regulation and voluntary industry commitments to prevent over-regulation from stifling rapid innovation.

Sam Altman highlighted Australia’s potential sweet spot for AI development, pointing to conditions that are favorable for innovation.

Bassat urged policymakers to put every lever in place to support a massive pipeline of startups and SMEs, while noting ongoing debates about government budget support.