Former Australian defence minister Andrew Hastie has issued a stark warning about the nation's position in the global artificial intelligence race, drawing direct comparisons to the nuclear arms race of the Cold War era. Speaking at a defence and security conference in Canberra, Hastie argued that AI represents a transformative technology that will reshape global power dynamics, and Australia must urgently invest and collaborate to avoid strategic irrelevance.
AI as the new nuclear deterrent
Hastie, who served as Minister for Defence Industry and later Minister for Defence Personnel under the Morrison government, described AI as 'the most consequential technology of our time.' He warned that nations leading in AI development would wield unprecedented economic and military advantages, while those lagging would face vulnerability. 'We are in the early stages of an AI cold war, and it is escalating faster than most people realise,' he said. 'The stakes are as high as they were during the nuclear arms race, but the pace of change is even more rapid.'
The former minister emphasised that AI's dual-use nature – with applications in both civilian and military domains – makes it particularly challenging to regulate and control. He called for a national strategy that includes increased funding for AI research, stronger partnerships with allied nations like the United States and the United Kingdom, and a robust ethical framework to guide development.
Australia's role in the AI race
Hastie noted that Australia has traditionally punched above its weight in technology and innovation but risks being left behind if it does not act now. He pointed to China's aggressive investment in AI as a primary concern, stating that Beijing's state-directed model gives it a significant advantage in scale and speed. 'China has made AI a national priority, and they are pouring enormous resources into it. We cannot afford to be complacent,' he said.
To counter this, Hastie advocated for a 'whole-of-nation' approach that involves government, industry, academia, and the defence sector. He recommended the establishment of a dedicated AI agency similar to the United States' National Artificial Intelligence Initiative Office, as well as tax incentives to encourage private sector investment.
Ethical and security concerns
While acknowledging the potential benefits of AI in areas like healthcare, logistics, and cybersecurity, Hastie also highlighted the risks. He warned of AI-enabled disinformation campaigns, autonomous weapons systems, and the potential for job displacement. 'We must ensure that AI is developed responsibly and in a way that aligns with our democratic values,' he said. 'This is not just a technological challenge; it is a moral and strategic one.'
Hastie's comments come amid growing global debate about AI governance. The European Union is finalising its AI Act, while the United States and China are competing for leadership in the field. Australia has yet to introduce comprehensive AI legislation, though the government has released a discussion paper on the topic.
In response to Hastie's speech, a spokesperson for the Minister for Industry and Science said the government recognises the importance of AI and is working on a national strategy, with further details expected later this year. The opposition has also called for a bipartisan approach to ensure Australia remains competitive.



