Press release
Australia Generative AI Market 2025 | Worth USD 1,247.6 Million by 2033
Report Attributes and Key Statistics:
Base Year: 2024
Historical Years: 2019-2024
Forecast Years: 2025-2033
Market Size in 2024: USD 292.0 Million
Market Forecast in 2033: USD 1,247.6 Million
Market Growth Rate: 17.5% CAGR (2025-2033)
Australia Generative AI Market Overview:
The generative AI market in Australia is growing rapidly as businesses integrate AI into essential functions. Companies are focusing on scalable and secure generative AI deployment for various purposes, from engaging customers to supporting strategic decisions. Business demand is prompting consulting firms to widen their AI-related services. Meanwhile, government policies and infrastructure investments, such as improved cloud capabilities, are laying the groundwork for change across industries. The academic sector and start-up ecosystem are partnering with industry and government to encourage innovation and maintain a steady flow of AI talent.
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Australia Generative AI Market Trends and Drivers:
Key trends include the shift from experimentation to full AI integration in enterprises, particularly in the legal, healthcare, and media sectors. Investments in infrastructure by cloud giants, digitization in the legal sector, and increased adoption in creative industries like media, design, and film are speeding up deployment. Collaborations between academia and industry, along with the government's AI Action Plan, are promoting responsible AI practices and commercial innovation. AI-as-a- Service platforms and the use of multimodal models are maturing quickly, making generative AI more accessible and diverse in its applications.
The main drivers of this growth are strong government funding and support, mandates for digital transformation across industries, and the need to improve productivity and innovation. Public-private partnerships are boosting research and development as well as commercialization, while advancements in cloud capabilities are making access easier. Australia's strong academic network provides the expertise needed, and government programs ensure ethical and safe use, building public trust and driving momentum across the sector.
Market Challenges:
• Regulation & Ethics: No clear GenAI-specific laws yet; risks around privacy, bias, and misinformation.
• Data Gaps: Limited local datasets; reliance on overseas data.
• Skills Shortage: Lack of AI talent in advanced areas like LLMs and AI governance.
• Misinformation Risks: Legal and reputational issues (e.g., fake AI-generated case citations).
• Low Adoption: Only ~9.5% of large firms use GenAI; employees worry about errors and copyright misuse.
• High Energy Use: Growing environmental concerns from data centers.
• Risk-Averse Culture: Businesses are slower to adopt compared to global peers.
Market Opportunities:
• Industry Impact: Healthcare, retail, finance, and manufacturing stand to gain.
• Productivity Boost: GenAI may raise annual productivity by 0.1-1.1%, freeing workers for higher-value tasks.
• Ethical Leadership: The RAIR Centre & SecGenAI framework support responsible AI use.
• Upskilling: Initiatives like the AWS program to train 1M students; growing demand for STEM skills.
• National Strategy: Projects like "Matilda" aim to strengthen Australia's AI independence.
Australia Generative AI Market Key Growth Drivers:
• Rising enterprise adoption of scalable and secure generative AI solutions
• Government initiatives promoting AI innovation and digital transformation
• Investments by technology consulting firms establishing AI competence centers
• Increasing demand for AI applications in legal, healthcare, and media sectors
• Expanding collaborations between academia and industry for AI research
Browse Full Report with TOC & List of Figures: https://www.imarcgroup.com/australia-generative-ai-market
Australia Generative AI Market Segmentation:
Offering Types:
• Image
• Video
• Speech
• Others
Technology Types:
• Autoencoders
• Generative Adversarial Networks (GANs)
• Others
Applications:
• Healthcare
• Generative Intelligence
• Media and Entertainment
• Others
Regions:
• Australian Capital Territory & New South Wales
• Victoria & Tasmania
• Queensland
• Northern Territory & Southern Australia
• Western Australia
Competitive Landscape:
Local Players
• Leonardo.Ai
• AutogenAI
• UNITH
Global Players Active in Australia
• OpenAI (ChatGPT)
• Google (Gemini)
• Adobe (Acrobat & Document Cloud with GenAI tools)
Australia Generative AI Market News:
• August 2025 - CBA reverses plan to cut 45 call-center jobs after AI redundancy backlash; staff offered option to stay.
• August 2025 - Treasurer Jim Chalmers signals another AI regulation review; debate over standalone AI law vs. adapting existing laws.
• August 2025 - A Jobs and Skills Australia report says AI will augment high-skilled jobs, but clerical/admin roles face automation.
Key Highlights of the Report:
• The Australia generative AI market is growing at a CAGR of 17.5% through 2033.
• Growth is driven by enterprise demand for secure and scalable AI solutions, especially in legal tech.
• Government initiatives and corporate investments are key growth enablers.
• Diverse technology offerings and applications are expanding across regions in Australia.
• Ethical AI governance and integration challenges coexist with significant market opportunities.
Note: If you require specific information not currently within the scope of the report, we can provide it as part of the customization.
Ask an analyst for your customized sample: https://www.imarcgroup.com/request?type=report&id=31834&flag=C
Contact Us:
IMARC Group
134 N 4th St. Brooklyn, NY 11249, USA
Email: Sales@imarcgroup.com
Tel. No.: (D) +91 120 433 0800
Americas: +1 201971-6302
About Us:
IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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