Microsoft this week hosted its AI Tour in Sydney, where the tech business made several key announcements alongside key notes and case studies from local industry leaders that highlighted the importance of building a future-ready AI economy.

The event featured a keynote address by Steven Worrall, Managing Director of Microsoft Australia and New Zealand, who emphasised the need for thoughtful investments in infrastructure, skills, and security, along with a shared commitment to developing and deploying AI safely and responsibly.

"AI represents an extraordinary opportunity for Australia. But we must ensure that the technology is adopted broadly across the economy so that everyone can access its benefits. This will require thoughtful investments in infrastructure, skills and security, as well as a shared commitment to developing and deploying AI safely and responsibly," said Worrall. "It’s essential we adopt a people-first mindset towards AI, where safety, transparency and social benefits are top priorities, alongside productivity and operational gains. We should also work hard to ensure that no one is left behind."

"AI transformation is more than just a technological shift; it’s a collective journey. Companies, governments, educational institutions and not-for-profits must come together to ensure that AI benefits every Australian safely and responsibly," said Worrall.

The event also saw the participation of Judson Althoff, Microsoft EVP and Chief Commercial Officer, along with executives from Commbank, Wesfarmers, and Minter Ellison, who discussed AI transformation. Microsoft announced a new AI Skills Initiative aimed at upskilling 1 million people across Australia and New Zealand by the end of 2026.

In addition, Microsoft is expanding its Azure Cloud infrastructure to Western Australia to support economic growth and meet the demand for cloud and AI services. The Australian Federal Police is utilising AI to protect Australia and its people, while Bunnings plans to introduce a new AI assistant in stores to help employees access data, insights, and updates for better customer service.

Suncorp has extended its partnership with Microsoft for five years to integrate AI at scale across its operations. Year 13, in collaboration with Microsoft, is providing skilling modules, AI-powered career coaching, and cloud-based data management.

Microsoft is working with the Australian Government and the broader industry to mitigate the risks and challenges associated with AI. The company is collaborating with the Department of Industry, Science and Resources to develop mandatory guardrails for AI in high-risk settings.

Microsoft has announced a $5 billion investment to expand its local hyperscale cloud computing and AI infrastructure. The company is on track to increase its computing capacity by 250 per cent and expand its datacentre footprint from 20 to 29 datacentres.

Microsoft is partnering with the Australian Signals Directorate (ASD) to improve protection from cyber threats for Australian residents, businesses and government entities. Microsoft's investments in infrastructure, skills and security are enabling organisations in Australia to achieve AI transformation.