Tech boss fears AI regulations will hamper innovation

Perth Now

24-06-2025

Artificial intelligence technology could unlock huge medical advances in Australia, from identifying patients in acute need to helping them hear more clearly, but only if regulations do not muffle innovation.
Cochlear chief executive Dig Howitt issued the warning at the QUT Business Leaders' Forum in Brisbane on Tuesday, when he also called for Australia to focus on key areas of innovation and for greater government support for local research and development.
The calls come after Prime Minister Anthony Albanese announced a productivity summit in Canberra in August that is expected to address similar issues, and during a year-long review into Australia's research and development investments led by Tesla chair Robyn Denholm.
Mr Howitt, who has led the hearing technology firm since 2018, told the audience Cochlear had been investigating the use of AI technology to identify and filter out background noise for people with implants and hearing aids.
But machine-learning software could also be used to streamline other parts of the medical industry, he said, such as triaging patients.
"There's lots of opportunities for AI, not just in cochlear implants but I think in healthcare more broadly," Mr Howitt said.
"The application of AI from a diagnostic perspective to streamline who needs acute intervention has a huge opportunity ... and have medical specialists focus where they really add value rather than on seeing a lot of people who actually don't have a problem."
Australian scientists, researchers and engineers had a significant opportunity to use AI to boost innovation, although it could depend on the regulations placed upon it, he said.
The federal government released a voluntary standard for AI use in 2024, but has yet to reveal its response to a consultation on mandatory guardrails for high-risk AI use, including a proposal for a dedicated AI law.
If Australia chooses to strictly regulate use of the technology, like Europe, Mr Howitt said other countries could seize the opportunity instead.
"If we regulate AI here, we can be assured that there's going to be less AI development here and that will happen in other countries around the world and we will be users of that application, AI, but not creators of it," he said.
"There is an opportunity for us to create so ... we've got to be careful there."
Keeping research and development in Australia would also be an ongoing issue, as there was less "risk capital" available to support start-up firms, Mr Howitt said.
While findings from the strategic review into R&D funding would be important, he said there was a clear need to remove the tax incentive cap on research investment and for Australia to focus on its advantages.
"People can call it picking winners, but the reality is there is absolutely global competition for R&D funding," he said.
"We do need to stick with our strengths of which medical technology is one, agricultural is another ... sustainability and green energy."
Australia's investment in R&D fell to $38 billion, or 1.68 per cent of gross domestic product, in 2022, below the OECD average of 2.73 per cent.