Australia should strengthen its research, engineering, skills and industrial capabilities to turn major technological and economic transitions into new industries and jobs, according to the Australian Academy of Technological Sciences and Engineering (ATSE).
Responding to the Australian Government’s 2026 Intergenerational Report, ATSE said the report’s focus on artificial intelligence (AI), the energy transition and industrial transformation highlighted the scale of change expected to shape Australia over the next 40 years.
ATSE President Dr Cathy Foley AO PSM FTSE FAA said Australia needed to develop the capabilities required to capture the benefits of these transitions domestically.
“The question is not whether these transitions will happen, it’s whether Australia has the capability to shape them and capture their benefits here,” Dr Foley said.
ATSE said the Intergenerational Report highlighted the importance of access to foundational AI models and computing capacity to support Australian researchers and businesses, attract technical talent and enable AI innovation.
The academy pointed to its 2025 report Made in Australia: Our AI opportunity, which called for targeted investment in Australian AI infrastructure, data and talent, including a network of AI factories connecting research institutions, industry and high-performance computing.
“The Intergenerational Report recognises that access to computing capacity and foundational models will shape Australia’s ability to innovate with AI. That is exactly why we need to build our own capability,” Dr Foley said.
“We should not simply be consumers of AI developed elsewhere. We need the infrastructure, talent, data and research capability to develop and deploy AI in ways that deliver value for Australia.”
ATSE also said the energy transition could create opportunities for industries involving renewable energy, critical minerals and advanced technologies, alongside the challenge of reducing emissions.
“The energy transition is not just an emissions challenge, but an opportunity to build new Australian industries around renewable energy, critical minerals and advanced technologies,” Dr Foley said.
The academy said the Intergenerational Report and the Australian Government’s Ambitious Australia review of research and development pointed to the need to connect Australia’s scientific and technological capabilities with industrial development and productivity.
“We have extraordinary scientific and technological capability in Australia. Our national challenge is to connect that capability to national priorities and create the conditions for Australian ideas to become Australian industries,” Dr Foley said.
