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Australia has experienced a remarkable surge in AI enterprise during the past decade. Significant AI research and commercialization concentrated in Sydney drives the sector’s development nationwide and influences AI trends globally. The city’s cutting-edge AI sector sees academia, business and government converge to foster groundbreaking advancements, positioning Australia as a key player on the international stage.

Sydney – home to half of Australia’s AI companies

Sydney has been pinpointed as one of four urban super-clusters in Australia, featuring the highest number of tech firms and the most substantial research in the country.

The Geography of Australia’s Digital Industries report, commissioned by the National Science Agency, the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Tech Council of Australia, found Sydney is home to 119,636 digital professionals and 81 digital technology companies listed on the Australian Stock Exchange with a combined worth of A$52 billion.

AI is infusing all areas of this tech landscape. According to CSIRO, more than 200 active AI companies operate across Greater Sydney, representing almost half of the country’s 544 AI companies.

“Sydney is the capital of AI startups for Australia and this part of Australasia”
—Toby Walsh, UNSW Sydney

With this extensive AI commercialization and collaboration in progress across Sydney, AI startups are flourishing.

“Sydney is the capital of AI startups for Australia and this part of Australasia,” according to Professor Toby Walsh, Scientia Professor of Artificial Intelligence at the Department of Computer Science and Engineering at the University of New South Wales (UNSW Sydney).

He cites robotics, AI in medicine and fintech as three areas where Sydney leads the world in AI innovation.

“As a whole, Australia punches well above its weight in the AI sector,” Professor Walsh says. “We’re easily in the top 10, and by some metrics, we’re in the top five in the world. For a country of just 25 million people, that is quite remarkable.”

Sydney’s universities at the forefront of AI research

A key to Sydney’s success in the sector is the strength of its universities, which are producing outstanding research.

In 2021, the University of Sydney (USYD), the University of New South Wales (UNSW Sydney), and the University of Technology Sydney (UTS) collectively produced more than 1000 peer-reviewed publications in artificial intelligence, contributing significantly to the field’s development.

According to CSIRO, Australia’s research and development sector has higher rates of AI adoption than global averages, with Sydney presenting the highest AI publishing intensity among Australian universities and research institutes.

Professor Aaron Quigley, Science Director and Deputy Director of CSIRO’s Data61 and Head of School in Computer Science and Engineering at UNSW Sydney, says Sydney’s AI prowess is supported by a robust educational pipeline that supplies skilled graduates to a wide range of industries that are rapidly adopting AI technologies.

“Sydney’s AI sector is backed up by the fact that you have such a large educational environment with universities like UTS, USYD and UNSW Sydney,” he says. “They rank in the top five of AI locations in Australia.”

UNSW Sydney is a heavy hitter, with more than 300 researchers applying AI across various critical fields such as hydrogen fuel catalysis, coastal monitoring, safe mining, medical diagnostics, epidemiology and stress management.

UNSW Sydney has more than 300 researchers applying AI across various critical fields such as hydrogen fuel catalysis, coastal monitoring, safe mining, medical diagnostics, epidemiology, and stress management.UNSW

UNSW Sydney’s AI Institute also has the largest concentration of academics working in AI in the country, adds Professor Walsh.

“One of the main reasons the AI Institute exists at UNSW Sydney is to be a front door to industry and government, to help translate the technology out of the laboratory and into practice,” he says.

Likewise, the Sydney Artificial Intelligence Centre at the University of Sydney, the Australian Artificial Intelligence Institute at UTS, and Macquarie University’s Centre for Applied Artificial Intelligence are producing world-leading research in collaboration with industry.

Alongside the universities, the Australian Government’s National AI Centre in Sydney, aims to support and accelerate Australia’s AI industry.

Synergies in Sydney: where tech titans converge

Sydney’s vortex of tech talent has meant exciting connections and collaborations are happening at lightning speed, allowing simultaneous growth of several high-value industries.

The intersection between quantum computing and AI will come into focus with the April 2024 announcement of a new Australian Centre for Quantum Growth at the University of Sydney. This centre will aim to build strategic and lasting relationships that drive innovation to increase the nation’s competitiveness within the field. Funded under the Australian Government’s National Quantum Strategy, it aims to promote the industry and enhance Australia’s global standing.

“There’s nowhere else in the world that you’re going to get a quantum company, a games company, and a cybersecurity company in such close proximity across this super-cluster arc located in Sydney”
—Aaron Quigley, UNSW Sydney

“There’s a huge amount of experience in the quantum space in Sydney,” says Professor Quigley. “Then you have a large number of companies and researchers working in cybersecurity, so you have the cybersecurity-AI nexus as well. Then you’ve got a large number of media companies and gaming companies in Sydney, so you’ve got the interconnection between gaming and creative technologies and AI.”

“So it’s a confluence of different industry spaces, and if you come here, you can tap into these different specialisms,” he adds “There’s nowhere else in the world that you’re going to get a quantum company, a games company, and a cybersecurity company in such close proximity across this super-cluster arc located in Sydney.”

A global hub for AI innovation and collaboration

In addition to its research and industry achievements in the AI sector, Sydney is also a leading destination for AI conferences and events. The annual Women in AI Asia Pacific Conference is held in Sydney each year, adding much-needed diversity to the mix.

Additionally, the prestigious International Joint Conference on Artificial Intelligence was held in Sydney in 1991.

Overall, Sydney’s integrated approach to AI development, characterized by strong academic output, supportive government policies, and vibrant commercial activity, firmly establishes it as a leader in the global AI landscape.

To discover more about how Sydney is shaping the future of AI download the latest eBook on Sydney’s Science & Engineering industry at besydney.com.au