AI Island: Driving economic growth for Tasmania’s future

Tasmania is preparing to take its next big step into the digital future, with a new Economic Diversification and Investment Strategy to be developed, providing a blueprint to ensure our state remains at the forefront of innovation to grow productivity.

A key initiative under the Tasmanian Government’s Economic Statement, Minister for Business, Industry and Resources, Felix Ellis, said the Strategy, to be developed in partnership with the Tasmanian Development Board, would harness Tasmania’s strengths while opening new frontiers in digital transformation.

“Artificial Intelligence and advanced digital technologies are no longer optional extras; they are the engines of productivity and competitiveness in the modern economy,” Minister Ellis said.

“By supporting Tasmanian businesses to invest in AI and other digital tools, we’re not just keeping pace with the world, we’re positioning our state to build long-term prosperity.”

The Tasmanian Development Board will consider how it can use its loan book to back strategic investments that help local businesses adopt AI and digital tools to improve productivity and competitiveness.

“Tasmania has the lowest unemployment rate in the nation, and our economy is worth a record $40.6 billion,” Minister Ellis said.

“This AI investment mandate is about building resilience for tomorrow, ensuring Tasmanian industries can adapt to global challenges, seize new opportunities and continue to thrive in a rapidly changing world.”

The Strategy will be developed by the Department of State Growth, with leadership from the Tasmanian Development Board, contributions from the Office of the Coordinator‑General, and external expertise where needed.

A draft will be delivered in the first half of 2026.

As part of this work, the Government will also review the legislative and financial toolkit under the Tasmanian Development Act 1983 to ensure the Board has the flexibility to deliver on its expanded role.

“Our Government is delivering for Tasmania by focusing on proactive, long-term planning to ensure our State continues to grow and thrive,” Minister Ellis said.

“We are working together to move our state forward, and the expertise and strategic insight of the Tasmanian Development Board will be critical in shaping a more resilient, innovative and productive economy for the future.”