AI/Machine Learning

Tech giants lobby Australia’s government over AI as Amazon warns of a ‘two-tier economy’

- October 6, 2025 2 MIN READ
Oliver, begging bowl
Image: Oliver/Columbia
Balancing the merits of artificial intelligence with the risks it poses to workers and creatives is a debate which rages on, all while major US tech companies ramp up their public relations campaigns — warning of the emergence of “two-tier” economies without greater AI take-up.

Amazon recently laid out its vision for a future Australia that’s “powered” by artificial intelligence.

The report, “Unlocking Australia’s AI potential”, is one in a series of country-specific reports commissioned by Amazon Web Services (AWS) and produced by UK consultancy firm Strand Partners. The latter registered on the European Union’s lobbyist register in June this year.

In a press release accompanying the release of the report in late August, AWS warned of the emergence of a “two-tier economy”, where “less agile competitors” are being outpaced by “tech-driven startups [that] innovate more rapidly”.

“Without deeper integration, these businesses risk missing out on the full potential of AI, falling behind more agile competitors, and driving a two-tier economy that will shape Australia’s prosperity for decades,” the press release said.

AWS announced earlier this year it would increase its planned investment in Australia by $7 billion to $20 billion by 2029. The extra money would “go towards expanding data centre infrastructure and supporting growing demand for artificial intelligence and cloud computing”, SmartCompany reported in June.

Google, too, has continued to boost AI, writing in a blog post last month that facilitating the use of AI by small and medium-sized businesses in Australia should be a “policy gold standard”.

“Small and medium-sized businesses (SMBs) are the largest employers in most economies, and AI is a powerful tool to boost their productivity,” the post said.

“Governments should help entrepreneurs access and adopt AI solutions through grants and skilling programs. The Australian government’s AI Adopt Centres help SMBs adopt AI services responsibly and grow their businesses.”

Earlier this week, a Senate inquiry on Australia’s national cultural policy examined the impact of AI on Australia’s creative landscape. Many of the creatives who appeared at the hearings were critical of the Productivity Commission’s alleged failure to consult with artists before recommending an exemption to the Copyright Act for text and data mining for AI development.

“You, I would put to you, are waving the white flag rather than standing up for our creative industries; you’re saying very clearly it’s not realistic that you could stop this. Copyright in this country is worth protecting,” Liberal Senator Sarah Henderson told the hearing, according to Guardian Australia.