Tasmania’s tech industry is calling for leadership from the Tasmanian government in AI adoption and tech innovation or risk a damaging decline in the State’s workforce productivity.
In its annual survey, TasICT members reported optimism about business conditions, but warned more needed to be done to encourage Tasmanians to be confident with technology and consider tech careers.
TasICT CEO Russell Kelly said that Tasmania’s tech firms were more optimistic than similar surveys taken nationally – 34 per cent of respondents expect revenue growth above 10 per cent in 2025 (up from 19 per cent in 2024), and 45 per cent plan to hire staff – steady with last year.
However, consistent with similar national surveys, retraction in government spending on technology has a huge flow on effect to tech firms.
“Tech jobs are productive jobs – they can help businesses get a competitive edge and help government provide services more cheaply.
“Our sector urges the State Government to have a digital roadmap for improving digital services in Tasmania.”
Mr Kelly said the survey of members taken in September 2025, showed support for adoption of AI, cyber security and skills shortages in tech were the major issues facing the sector.
Tasmania’s tech sector currently employs 11,200 people (3.2 per cent growth) and adds $1.1 billion to the State’s economy, with Deloitte Access Economics predicting 21,000 additional jobs could be added by 2035 in its Digital Pulse report prepared for the Australian Computer Society and released last week.
“Crucially, 81 per cent of TasICT members consider that the State Government is not doing enough to advance the Digital Economy – and its not improving compared with previous years.”
Mr Kelly said that more than 86 per cent of TasICT members were using AI in some form in their businesses, with a further 7 per cent researching adoption. Around 5 per cent of tech firms are using AI for critical system processes. This is consistent with trends nationally in the tech sector.
Mr Kelly said the coming State Government budget need to supercharge spending on technology and provide a roadmap to make Tasmania a smart state.
“Tasmania has a great potential to pioneer science, creative industry and sustainable tech – but we are moving slowly at a time when the arrival of AI is changing the world at break-neck speed.”
TasICT lauded plans for the huge investment of $73.3 billion in project Southgate by a strategic partnership including Tasmanian-based firm Firmus Technologies as evidence of the strength in the tech sector.
Announced on 17 October 2025, Firmus Technologies has secured a strategic partnership with CDC Data Centres and the world’s most valuable firm chip-maker NVIDIA to expand the Southgate project from Tasmania and Melbourne to Perth, Adelaide, Sydney and Canberra.