Google’s Impact in Australia: Building a Stronger Digital Future

Key Takeaways

• Economic opportunity is substantial. Digital technology adoption could increase Australia's GDP growth by 0.7%-1.2% annually and contribute up to $4 trillion to the economy over the next 15 years.
• The skills gap is costly. Australia's digital skills shortage is costing businesses $3.1 billion annually, with 286,000 additional technology workers needed by 2030.
• Digital tools drive business growth. Google products alone support $51.8 billion in economic activity and 158,500 jobs across Australia, with SMBs accounting for $32.2 billion of that activity.
• Benefits reach households too. Australian internet users gain $739 per person annually in economic benefits through time savings, reduced costs, and better decision-making enabled by digital tools.
• Investment in skills and infrastructure is essential. Closing the digital gap requires continued investment in upskilling programs, research partnerships, and technology infrastructure to position Australia for long-term prosperity.

Digital technology is emerging as a cornerstone of Australia's economic growth, offering significant potential to address current national challenges by boosting productivity and driving sustained economic growth. In today's challenging environment characterised by high inflation and interest rates, greater digital adoption enables businesses to achieve greater efficiency and reduce costs. Studies have found that greater adoption of digital technology has the potential to increase Australia's annual GDP growth rate by 0.7%-1.2%. Furthermore, up to 46% of current work activities in Australia could be digitised using advanced technologies such as machine learning, artificial intelligence, and advanced robotics. This transformation can boost productivity, drive income and economic growth, and potentially contribute up to $4 trillion to the economy over the next 15 years.

Digital technology continues to be a key enabler for business growth across most sectors. The manufacturing sector, for instance, has experienced a decline in GDP contribution from 7.4% to 5.5% between 2010 and 2021. However, technology is rejuvenating the sector through AI-enriched simulation training for new employees, optimisation of automated production lines, and enhanced precision engineering processes enabled by robotics. Cloud computing is also enabling cost reduction in IT operations by simplifying the process of expanding and upgrading hardware and software, making it more affordable for organisations. Currently, 51% of businesses in Australia are actively seeking to adopt cloud services, with potential cost savings being a key motivation.

Bridging the digital skills gap is critical to facilitate economic growth. The current digital skills gap is costing Australian businesses $3.1 billion annually. With 87% of jobs in Australia now requiring employees to have digital skills, and the country likely needing another 286,000 technology workers by 2030, prioritising the upskilling and reskilling of employees is essential. Investing in the development of a digitally skilled workforce will better prepare Australia's economy to embrace the innovation and transformation brought about by new technology.

Google is actively supporting Australia's digital transformation through its products and initiatives. In 2022 alone, Google products enabled over 1.6 million Australian businesses to establish direct connections with their customers through calls, messages, bookings, and more. Google Workspace enables significant time savings of up to 24 working days per employee annually through more efficient document sharing and collaboration. The impact extends beyond convenience—Google products contribute an estimated $51.8 billion in economic activity for Australian businesses, directly supporting 158,500 jobs through advertising products with a further 222,000 jobs enabled across supply chains.

Small and medium-sized businesses and not-for-profit organisations are particularly benefiting from Google's accessible and often free-to-use products. A substantial $32.2 billion of economic activity in Australia is attributable to SMBs annually, with an estimated 66% of Google-supported jobs—around 104,400 positions—located in small and medium businesses. These benefits are well spread across the country, spanning from $506 million and 1,500 jobs in the Northern Territory to $16.5 billion and 50,400 jobs in New South Wales.

Google's $1 billion Digital Future Initiative, announced in 2021, is investing in Australia's infrastructure, research, and partnerships. The establishment of research partnerships and the Google Research Hub has enhanced Australia's research capability, projected to deliver $1.5 billion in net present value over the next decade. Google is also addressing the digital skills gap through programs like Grow with Google and Google Career Certificates, alongside 10,000 scholarships focused on women and Indigenous Australians to support a more diverse talent pipeline in Australia's technology sector.

For Australian households, Google products deliver $19 billion in economic benefits annually—equivalent to $739 per internet user per year. From reducing travel times and petrol costs through Google Maps to finding the best deals through Google Search, these tools help Australians make better decisions and save money. This is especially critical against the backdrop of rising costs of living and interest rates. As Australia looks to build a stronger digital future, embracing digital technologies will be key to becoming more resilient, competitive, and better equipped to cope with economic and societal challenges.

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