Written by Marcela Balart

Google launches AI Mode in Australia

Google has rolled out AI mode in Australia, a new optional feature allowing users to deep dive into queries while in Search.

Designed for exploratory or planning-based tasks, such as trip itineraries or comparative research, AI Mode uses a “query fan-out technique”, breaking complex prompts into subtopics and issuing multiple searches on the user’s behalf. 

Running on Google’s Gemini models, the setting marks the next step towards integrating generative AI following the introduction of AI Overviews last year.

New OpenAI contract cements position in Australia’s public sector

Tech giant, OpenAI, has secured a $25,000 contract with the Commonwealth Grants Commission for AI services. This follows a $50,000 deal with Treasury for software as a service (SaaS) in June.

Both contracts avoided the tender process due to their value being under the $80,000 threshold and comes in the same week Australia’s Digital Transformation Agency released new guidance for the government’s use of public generative AI tools, such as ChatGPT.

Speaking at SXSW Sydney last week, OpenAI chief global affairs, Chris Lehane, said Australia could play a pivotal role in the global AI infrastructure race, adding whichever country can marshall chips, data energy and talent “will determine whether the world is built on democratic or autocratic AI”.

AI predicted to boost Australia’s economy by up to $142b

A new economic analysis predicts AI could contribute up to AUD $142 billion to Australia’s economy each year by 2030.

The “Australia’s AI opportunity” report highlights the potential productivity gains, a narrowing gender wage gap, and substantial benefits for small businesses if AI adoption is accelerated.

However, a shortage of computing infrastructure, a lack of advanced skills, and issues around public trust in AI are significant barriers to these realisations.

The research was a joint initiative between the Business Council of Australia (BCA), the Australian Computer Society (ACS), the Council of Small Business Organisations Australia (COSBOA), the Australian Information Industry Association (AIIA), several data centre providers, Women in Digital (WiD), and commissioned by OpenAI.

AWS launches three AI services in Australia

Prior to this week’s global outage, Amazon Web Services (AWS) launched three new AI services in Australia, including:

• Claude Sonnet 4.5, Anthropic’s most intelligent model, is now available through Amazon Bedrock, and delivers advanced problem-solving abilities under enterprise-grade security.
• Amazon Bedrock AgentCore allows developers to quickly and securely deploy and operate AI agents at scale.
• Amazon Quick Suite is AWS’s new agentic tool that quickly answers work-related questions and turns insights into actions into one workspace.

The rollout forms part of AWS’s strategic investment in Australia through world-class data centre infrastructure, renewable energy projects, and AI programs for customers.

To learn more about how IMPACT can leverage AI as part of your communications strategy, contact Nicole Webb at nicole@impactagency.com.au.