AI leaders weigh in on the 2026 Australian Federal Budget
With the recent handing down of the 2026 Australian Federal Budget, Artificial Intelligence (AI) leaders from Australia and Asia Pacific have expressed their views and comments.
Vinayak Sreedhar, A/NZ Country Head for ManageEngine, commented, “The Budget’s productivity agenda is hard to argue with, but productivity measures tend to be designed with larger organisations in mind. For a business of 20 or 30 employees, the barriers are more basic: can I afford the tools, and do I have someone who knows how to use them? Until both of those questions have better answers, the gap between what large enterprises can do and what SMBs can do will keep widening.
“Australian small and medium businesses are already making tough calls about where every dollar goes. Unfortunately, IT and technology investment often get deprioritised because the perception is that serious tools come with enterprise price tags. But that perception is increasingly out of date, and it’s costing SMBs in ways that aren’t always visible until something goes wrong, like a security breach or compliance failure, for example.
“With the economic growth forecast to slow and inflation remaining elevated, Australian business are entering a period where technology will be the primary lever for maintaining competitiveness without growing headcount. This is the moment to invest strategically, not retreat.
“Budget measures that drive digital transformation in government must be matched with equal investment in security operations. Identity and access management, privileged access controls, and real-time threat detection aren’t optional extras. They’re the foundation that makes digital government services trustworthy and resilient.”
David Irecki, CTO for APJ, Boomi, said, “The Federal Budget’s emphasis on inflation, cost-of-living relief, and productivity comes as no surprise, and the government’s turn to AI in pursuit of these gains is welcome, particularly where the focus extends to AI solutions built in Australia. This is where digital sovereignty stops being a talking point. The value of these commitments depends on where the data lives, where the models are trained, and who ultimately controls the infrastructure underneath.
“While no dollar figure has been assigned to an all-encompassing nationwide AI initiative, there is meaningful action underway to improve the government’s digital capabilities. Sustained backing from both government and industry in AI, digital skills, and emerging technologies will be essential to build on this momentum.
“This Budget will be a significant test of the government’s resolve. These initiatives lay the foundations for further investment, but it is on the government to take the next steps: investing in AI talent, workforce upskilling, and cross-sector collaboration to sustain AI-friendly legislation.
“Throughout this period, AI guardrails and governance must remain front of mind to ensure adoption keeps pace with the safeguards needed to protect citizens, maintain trust, and uphold the integrity of government decision-making. This means building connectivity and control into AI-powered operations, giving agencies end-to-end visibility over their data and policy enforcement required to scale responsibly.”
Adam Frank, SVP & GM – APAC for SugarAI, added, “The budget announcement to deliver more beds, packages and care for older Australians is welcome news for a sector that is already seeing significant strain due to increasing demand.
“At the same time, the challenge is not just capacity, but how quickly and efficiently providers can connect older Australians to the care they need. While part of the funding will support the construction of an additional 5,000 beds each year, demand continues to outpace supply, with the number of Australians aged 85 or older set to grow by around 30,000 every year to the end of the decade, and an estimated 200,000 already waiting to access aged care services.
“As demand continues to grow, the sector will need not only more beds and packages, but also better visibility across admissions, occupancy, enquiries and care coordination to help reduce delays and improve the experience for older Australians and their families.
“The focus now needs to be on helping providers respond faster and create clearer pathways from enquiry through to admission and ongoing care, so that people can access the support they need sooner.”
Dave Such, Vice President Pacific for AVEVA, said, “The infrastructure is going to be there for industry to avail of the benefits of AI – but it’s now incumbent on industry to take advantage of that infrastructure.
“We work with heavy industry, and we know that AI is the biggest challenge and opportunity boards around the world are discussing. It’s a competitive environment and industry needs to get on the front foot. Set your data strategies, ensure the right tools are in place and start taking advantage of the proximity to AI infrastructure as it’s built out. We can’t wait for government to drive it – it’s industry that must be behind the wheel.
“Australia also needs to concurrently start transitioning its workforce to an AI era. AI promises both productivity gains and long-term competitive advantage – but people need to know how to use it. Data literacy programs and AI training need to be undertaken now, and that’s a responsibility both the private and public sector share. If we don’t? We’ll risk an entire cohort of the workforce’s livelihoods, which could have a domino effect on the economy.”
