STATE SHOULD DO MORE TO DRIVE E-ECONOMY

Statement from TasICT General Manger, Russell Kelly | 30.09.24

A new survey of the State’s tech industry says the State Government should be doing more to promote and drive the digital economy.

TasICT today released details of tech sector attitudes to government support showing that 85 per cent of industry respondents believed the State Government was not doing enough to advance the digital economy in Tasmania.

The survey of members also ratified results from other recent national surveys that showed the tech industry was facing headwinds in the current economic times and government focus was critical.

Of the survey respondents, 45 per cent expected they would experience a decline in revenue growth or flat to small revenue growth in the current economic conditions.

This compares with 34 per cent in the recent Australia Information Industry Association (AIIA) survey asking the same question.

TasICT General Manager said that the recent budget showed the State Government had lost momentum on the digital economy and needed to urgently build capacity and capability in the sector.

“TasICT members are central to the development of Tasmania’s digital economy – and it needs Government to provide leadership and drive just like any employment sector.”

When asked about the main barrier to expanding business in Tasmania, TasICT members said that the State Government retraction in spending and skills shortages were the two major factor providing economic headwinds.

This was despite a generally positive employment outlook – more than 40 per cent of TasICT members who answered the survey said they would be prepared to take on a graduate intern in coming months to help train new starters in ICT while 45 per cent of respondents were planning on recruiting in the coming year or were actively recruiting now.

Mr Kelly said the Tasmanian industry mirrored results nationally showing the use of Artificial Intelligence is under active growth in Tasmania.

TasICT members reported that 89 per cent of members were using AI now or researching or planning to use AI in the next 12 months – with 2 per cent of respondents already using AI for critical functions. This compares with 17 per cent using AI for critical functions nationally.

The tech sector in Tasmania represents an annual value of more than $1.7 billion to the State’s economy and employs more than 9,600 Tasmanians.