Australia's newest ASX 50 technology company has issued a stark warning to governments, urging them to prioritise local technology in procurement decisions or risk falling behind in the critical global race for digital sovereignty.
The Risk of Falling Behind in Global AI Race
Brisbane-based enterprise software leader TechnologyOne says Australia cannot afford to remain on the sidelines while major economies like the United States and Europe aggressively invest in their domestic innovation ecosystems, particularly in the field of artificial intelligence.
According to CEO Ed Chung, Australia possesses the talent, commercial expertise and research capabilities needed to lead the world in the next wave of technology built on AI. However, he warns that without fair access to government contracts, local innovation will continue to be overshadowed by international tech giants and global consulting partners.
"AI is the fastest growing technology in history. We have to decide now – do we want to be leaders or passengers?" Mr Chung states emphatically.
He points to what he describes as a persistent "cultural cringe" within government bureaucracies that continues to favour foreign solutions over Australian alternatives, despite politicians increasingly promoting buy-local messages.
The Economic Consequences of Ignoring Local Talent
The consequences of continuing to undervalue Australian software extend beyond immediate economic impacts, potentially creating what Mr Chung calls "a conveyor belt to take our best and brightest out of the country."
He highlights Australia's alarming drop in global economic complexity rankings – falling from 93rd to 105th position, now trailing behind Botswana – as clear evidence that the nation is losing ground in technological advancement and economic sophistication.
"That means the job choices available to our kids are going to be way more limited than we want for them," Mr Chung explains, adding that AI's disruption of all tech markets presents a crucial opportunity for Australia to catch up.
Founded in Brisbane in 1987 and now valued at over $13 billion, TechnologyOne has demonstrated what's possible for Australian tech companies. The company has achieved global success by focusing on software solutions for public-sector services and higher education institutions across Australia, New Zealand and the United Kingdom.
A New Model for Technology Implementation
TechnologyOne is challenging traditional software delivery models with its innovative SaaS+ approach. Unlike conventional systems that outsource implementation to third-party consultants who charge by the hour – creating potential conflicts of interest when projects run over time – TechnologyOne handles everything in-house without separate implementation charges.
"We don't charge for implementation, so if we run over time on the project, we are the ones losing money," Mr Chung explains. "We can do that because we long ago refused to partner with the big international consulting companies."
The company recently launched its groundbreaking agentic AI product called Plus, which will be released to its extensive global customer base in coming months. This development proves that Australian companies can lead both technologically and commercially in competitive international markets.
In an era where digital sovereignty has become a policy priority in regions like Europe, Mr Chung questions Australia's reliance on overseas technology. "Do we really want to be reliant on technology from overseas when we know it is going to be at the heart of every aspect of our personal and business lives?" he asks. "That feels like a risk we shouldn't take."
To initiate meaningful change, Mr Chung proposes a simple but powerful adjustment to government procurement processes: agencies should begin by asking "If not Australian, why not?" when evaluating technology solutions.
While acknowledging positive intentions from federal leaders, he says procurement decisions remain stuck in outdated habits. "You've all started to talk the talk, and that is great. But your bureaucrats are not yet walking the walk," Mr Chung states. "The rest of the world is sprinting. Let's do what we do best and join the race to win."
