Australia's artificial intelligence startups have long struggled to convince large domestic companies and government agencies to purchase their technology. With more than 1,500 local AI companies building world-class technology, a new government-backed initiative, the Buy Australian AI Partnership, aims to change that by connecting local innovators with major financial institutions. The program is led by startup accelerator Stone & Chalk and supported by the nation's big four banks.
A National Push to Buy Local AI
Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton announced the partnership as an industry-led program under the government's national AI plan. He said Australia faces a sliding doors moment and must be a creator, not just a renter, of AI. Participating startups and scale-ups will complete an eight-week accelerator covering technical, regulatory, security and operational requirements and gain access to ANZ Bank, Commonwealth Bank, National Australia Bank, Westpac and Cuscal.
Addressing a Persistent Market Gap
Australian AI founders have frequently said that big local companies and government departments are reluctant to trust them with contracts. Many organisations instead rely on all-encompassing deals with US technology giants such as Microsoft, Amazon Web Services, OpenAI and Anthropic. The new scheme is pitched as a way for startups to present themselves as credible alternatives to decision-makers in banking, insurance and superannuation.
Mixed Reactions from Founders
Trellis Data co-founder and chief executive Michael Gately welcomed the idea but said the accelerator may arrive too late for companies already serving government clients and small businesses. He argued that mature operators need chief information officers at major institutions to recognise viable local options with frontier capability. Dave Lemphers, chief executive of Maincode, was more critical, describing the program as performance theatre that misses the need for serious financial investment.
The Compute Power Challenge
Christopher Sampson, co-chief executive of Tiliter, said his AI vision company had to win business overseas before Australian customers took it seriously. He noted that a first serious domestic customer can provide more valuable real-world validation than any grant. Founders also pointed to constraints around computing power, with Michael Gately saying capacity can take months to secure and prices can move by as much as 50 per cent within a week.
A Broader Strategy for AI Sovereignty
Stone & Chalk chief executive Stela Solar said the program would send a powerful demand signal for innovators to build in Australia, stay in Australia, and use the country as a base for global expansion. She added that Australian enterprises need to open the door to local innovation across sectors such as medical diagnosis, agriculture, mining, finance and retail. Without secure domestic compute capability, she warned, Australia risks being squeezed out of the sovereign AI foundations it is building.
Trust and Local Capability
Michael Gately said there is a very big trust issue around AI and that a strong Australian industry is key to gaining community support. He suggested that data centre investment from suppliers like Nvidia and Dell should include a set-aside to give Australian companies price certainty for a period of time. Many people, he added, are relieved to learn that Australia is producing globally competitive AI models.
The Buy Australian AI Partnership offers a practical pathway for early-stage companies to meet large institutional buyers, but it is not a complete solution for Australia's AI sector. Industry leaders argue that sustainable growth will also require procurement leadership, guaranteed access to computing power, and deeper investment in local capability. The initiative nonetheless signals a growing determination to ensure Australia becomes a creator of AI rather than a renter.