Why Australia will play a pioneering role in 2025's tech innovation

Last year, we witnessed the accelerated growth of new technologies, as they reshaped and moulded day-to-day activity. However, the developments achieved over the last few years are only building blocks for the types of technologies and trends we can expect in 2025. In Australia, investment and regulation will continue to steer local innovation towards breakthroughs that drive efficiencies without compromising on the environment.

Leveraging the power of artificial intelligence (AI), technology will be guided by new guardrails that help us understand and maximise potential, without placing sensitive information or data at risk. Further investment into quantum computing technology will not only place Australia at the forefront of innovation, but also educate local businesses on how the technology can help solve complex tasks at rapid speed. The growth of these two technologies will require those hosting data, including cloud and data centre providers, to prioritise sustainable infrastructure and ensure that progress does not come as a detriment to our environment.

Using guardrails to keep AI innovation on course

The recent AI boom has gifted many industries with multiple benefits to increase productivity for employees. With forecasts that local AI adoption could contribute $170 million to $600 billion of GDP, development is likely to continue to flourish in 2025. However, local activity remains under increasing regulatory pressure. In 2024, the Australian federal government released a proposal paper introducing mandatory guardrails for AI in high-risk settings. Businesses can expect broad regulation to address technical practices and guidance for developers, leading to long-term benefits and improved usage across Australia. These regulations will ripple across different industries and ultimately guide local businesses to safely adopt, use and rely on AI.

Quantumania in Australia

Last year, the Australian federal government mapped out its ambitions to place Australia at the forefront of quantum computing innovation. According to the Department of Industry, Science and Resources, Australia’s quantum technology industry is set to be worth almost $6 billion, and employ 19,400 workers by 2045. The dawn of quantum computing as an industry will continue to emerge globally, promising unprecedented speed, power and innovation for industries around the world. The surge in quantum computing will be driven by increasing investments and a healthy number of quantum collaborations globally.

The benefits of quantum computing will touch different industries but accelerate the uptake of AI technology. It is the convergence of AI and quantum technology that will revolutionise industries, catalysing a data explosion that enables maximised speed to train AI technology.

However, the heavy computational demands of AI and quantum workloads will require substantial processing power and storage capacity. This will require a steady balance between energy consumption to maintain optimal operational temperatures whilst supporting processing.

Cooling local businesses

Data centres and the cloud are the heart of IT sustainability challenges, powering devices, computing workloads and hosting data from local customers. But data centre activity is adding to climate risks, with estimates that the industry accounts for 2% of global emissions. As Sydney and Melbourne continue to emerge as a regional hub for data centres in Asia Pacific, commitments to sustainability and innovation must become a priority. Leveraging sustainable infrastructure, such as water cooling technology, can help offset environmental impacts and enable businesses to meet their computing needs.

The past few years have created building blocks that will make technological advancement in 2025 exciting. National regulation will shape how local businesses leverage AI technology and showcase best practices to safeguard data and our practices, while driving efficiencies across businesses. Further local investment into quantum capabilities will enable small businesses to leverage new capabilities that can optimise AI and ML training and solve complex issues at a rapid rate. The combination of quantum and AI development must go together with sustainable data centre infrastructure, to keep up with demand while protecting our planet and safeguarding our future.

Image credit: iStock.com/Fasai Budkaew