Govt urged to improve digital investments

The Productivity Commission has urged the government to improve its investment in digital infrastructure in regional and remote parts of the country to ensure Australia does not get left behind in the digital revolution.

In its second interim report of its five-year Productivity Inquiry, the commission also advocated for policies aiming to address Australia’s growing tech skills shortages and to encourage private sector investments in cybersecurity and digital technologies.

Productivity Commissioner Dr Stephen King said data and digital tools and applications have the potential to play a major role in Australia’s continued prosperity.

“Digital technology and data have already transformed our economy and society, but we have not yet tapped into their full potential,” he said.

“Technologies such as artificial intelligence, robotic automation and big data analytics could revolutionise how businesses operate and help lift Australia’s productivity growth by reducing costs, improving the quality of goods and services, and increasing product choice for consumers.”

But the report also found that several barriers threaten to limit further adoption of digital technologies, including inadequate internet connectivity compared to global peers, as well as skills shortages, security concerns and uncertainty about the benefits.

“We do well in Australia on basic aspects of technology and data use, like internet coverage, but are falling behind in more advanced areas such as business uptake of analytics and artificial intelligence,” Dr King said.

“We also need fast, reliable and affordable internet to enable businesses to take up advanced digital technologies. Government can help by improving investment in digital infrastructure, particularly in rural and remote Australia, forming digital partnerships with the private sector and ensuring we have a future-ready workforce.”

The Commission is now consulting on the interim report to inform its final report on Australia’s data and digital dividend.

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