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Artificial Intelligence in Australia Industry Data and Analysis
The Artificial Intelligence industry has experienced surging growth in recent years. Strong AI investments in the mid- to late 2010s saw a raft of new companies enter the industry. Many of these companies have now entered commerciality and begun generating meaningful revenue. ChatGPT’s public release has supported the industry, pushing AI’s capabilities into the public consciousness and encouraging companies to actively explore how they can integrate AI into their operations. While growth has been strong, the Australian AI sector has started to fall behind other global competitors, including peer economies of a similar size. Australia's global share of AI research publications and patent issuances has declined over the past decade, and its total private investment in the AI sector has been weaker than that of similarly sized economies. Overall, industry revenue is expected to grow an annualised 8.1% over the five years through 2025-26 to $2.6 billion.
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What's included in this industry analysis
IBISWorld's research coverage on the Artificial Intelligence industry in Australia includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released November 2025.
About this industry
What's this industry report about?
The Artificial Intelligence industry in Australia operates under the ANZSIC industry code OD5562. This industry includes companies that are involved in creating foundational artificial intelligence models, software frameworks, libraries and platforms to use, deploy, manage and develop AI models, and build datasets and databases for training AI models. AI application developers are also included but only where the company's primary purpose is to create applications and not to augment existing products. Companies earn revenue by either providing AI-related development and support services to firms or through licensing AI models. Related terms covered in the Artificial Intelligence industry in Australia include natural language processing, machine learning and generative ai.
What's included in this industry?
Products and services covered in Artificial Intelligence industry in Australia include Digital assistants and chatbots, Predictive analytics and Cybersecurity.
What companies are included in this industry?
Companies covered in the Artificial Intelligence industry in Australia include Woolworths.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Artificial Intelligence industry in Australia.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed product and service segmentation, analysis of major markets and international trade data for the for the Artificial Intelligence industry in Australia.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Artificial Intelligence industry in Australia.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Artificial Intelligence industry in Australia. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Artificial Intelligence industry in Australia. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Artificial Intelligence industry in Australia. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Artificial Intelligence industry in Australia. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Artificial Intelligence industry in Australia.
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Frequently Asked Questions
What is the market size of the Artificial Intelligence industry in Australia in 2026?
The market size of the Artificial Intelligence industry in Australia is $2.6bn in 2026.
How many businesses are there in the Artificial Intelligence industry in Australia in 2025?
There are 958 businesses in the Artificial Intelligence industry in Australia, which has grown at a CAGR of 7.0 % between 2020 and 2025.
How may import tariffs affect the Artificial Intelligence industry in Australia?
The Artificial Intelligence industry in Australia is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Artificial Intelligence industry in Australia?
The Artificial Intelligence industry in Australia is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Artificial Intelligence industry in Australia grown or declined over the past 5 years?
The market size of the Artificial Intelligence industry in Australia has been growing at a CAGR of 8.1 % between 2020 and 2025.
What is the forecast growth of the Artificial Intelligence industry in Australia over the next 5 years?
Over the next five years, the Artificial Intelligence industry in Australia is expected to grow.
What are the biggest companies in the Artificial Intelligence industry in Australia?
The biggest company operating in the Artificial Intelligence industry in Australia is Woolworths
What does the Artificial Intelligence industry in Australia include?
Digital assistants and chatbots and Predictive analytics are part of the Artificial Intelligence industry in Australia.
Which companies have the highest market share in the Artificial Intelligence industry in Australia?
The company holding the most market share in the Artificial Intelligence industry in Australia is Woolworths.
How competitive is the Artificial Intelligence industry in Australia?
The level of competition is moderate and increasing in the Artificial Intelligence industry in Australia.
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