Australia’s AI Race Heats Up as Salesforce Invests $2B, Challenging Microsoft, Google, and AWS for Market Share

Salesforce plans to invest $2.5 billion in Australia over the next five years to fuel AI innovation. The move strengthens Salesforce’s presence in the country’s growing tech sector though positions it in direct competition with Microsoft, Google, and AWS.

Most of the investment will go into Agentforce, Saleforce’s AI-powered customer management software. Designed to automate tasks without human intervention, it aims to reshape how businesses handle customer service.

“We’re proud to invest in Australia to help organisations of all sizes transform their operations and redefine their workforces with agentic AI,” said Frank Fillmann, executive vice president and general manager, Salesforce Australia and New Zealand, at the Agentforce World Tour Sydney.

“Australian business leaders are challenged by low productivity growth, a tight labour market and higher than ever customer expectations. Empowering their employees with Agentforce and limitless digital labour is the breakthrough they need.”

Salesforce will also focus on workforce upskilling and sustainability initiatives. These efforts align with Australia’s National AI Capability Plan, which aims to strengthen the country’s digital economy and global standing.

Salesforce’s strategic AI investment in Australia

Salesforce has been operating in Australia since 2004 and now employs more than 2,400 people with thousands more working in its partner network. Major Australian companies — Telstra, Flight Centre, Canva, Scape, and hipages — use its AI technologies to boost productivity and improve customer service.

Salesforce and its Australian network are expected to generate over 245,00 jobs and $46 billion in business revenue by 2028, according to 2023 data from IDC research, as cited by Salesforce in its press release about the Sydney Agentforce World Tour.

Salesforce is also aggressively pushing its AI expansion in other markets. Earlier this month, the company cut more than 1,000 jobs to reallocate spending toward AI-driven projects. It also awarded Google a $2.5 billion cloud contract to expand beyond its reliance on Amazon Web Services.

Australia’s AI boom accelerates as tech giants expand investments

Generative AI could add up to $115 billion to Australia’s economy annually by 2030. This estimated growth comes from increased efficiency in industries and the rise of AI-driven products.

The country’s tech workforce, 935,000 strong in early 2023, is expected to reach 1.2 million by 2030. With support from industry and government, Australia is positioning itself as a leader in AI adoption.

Global tech firms ramp up AI infrastructure investments

Major tech companies are investing billions in Australia’s AI and cloud infrastructure.

Microsoft announced an AU$5 billion investment in 2023, its biggest in 40 years in Australia, to expand AI and cloud computing.

Google pledged $1 billion under its Digital Future Initiative to boost AI research. Its AI-powered products generate an estimated $51.8 billion in economic activity.

AWS has invested AU$9.1 billion in Australian cloud infrastructure since 2012. It plans to add AU$13.2 billion by 2027 to expand operations in Sydney and Melbourne.

Australia’s enterprise software market on the rise

Australia’s enterprise software market is projected to hit $5.31 billion by 2025, led by CRM software at $1.67 billion. With a 5.69% annual growth rate, it could surpass $6.63 billion by 2029.

As tech giants pour money into AI, Australia is set to see major advancements in automation, business intelligence, and digital transformation, which will reshape industries and jobs.
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