St Vincent's urges Australia to back healthcare AI

St Vincent's has urged the Australian Government to prioritise health and aged care in the country's first AI standards, warning Australia risks losing control of healthcare AI development without urgent policy action.

In a submission to the government's consultation on AI standards and frontier AI infrastructure, the health and aged care group argued that regulatory settings, procurement policy and investment decisions will determine whether Australia builds domestic healthcare AI or relies on overseas systems.

It said Australia has strong advantages in the field, including large health datasets, clinical expertise and public trust in healthcare institutions. However, those strengths may not translate into lasting domestic AI development unless governments intervene early.

St Vincent's said health and aged care should be treated as priority sectors as AI standards are developed, arguing that patient safety, trust and future innovation in care delivery depend on decisions made at the start of the policy process.

Its submission also called for public-interest obligations on companies developing AI in Australia, with contributions directed to health and aged care research. It said those contributions should particularly support people with poorer health outcomes and groups often missed by traditional service models.

Dr Chris Robinson, Chief Medical Officer at St Vincent's, said the country faces a narrow window to establish a domestic position in the sector.

"Just as electricity transformed industries in the early 20th century, AI has the potential to fundamentally reshape how health and aged care are delivered," Dr Robinson said.

"By combining technology with the expertise of clinicians, we can reimagine what accessible, high-quality care looks like for all Australians, whether that's care provided in hospitals, community settings or at home. Australia should be ambitious, building on areas where we already have internationally recognised strengths to lead the next generation of healthcare innovation."

Build or buy

A central theme of the submission was what St Vincent's described as a choice between building local systems and buying them from foreign suppliers. It argued the decision will shape not only industrial policy, but also the future of Australia's health and aged care services.

St Vincent's said a domestic development path would support local expertise and make use of Australian population health data. By contrast, relying on imported models could erode local technical depth and leave healthcare providers dependent on external vendors for critical systems.

Dr Robinson set out that distinction in direct terms.

"Australia has a closing window of opportunity to secure a role in AI development and provision as it becomes integral to health and aged care," Dr Robinson said.

"Healthcare is one of the strongest opportunities because of our long-running universal healthcare system, national programs and population datasets.

"How we approach these opportunities matters. The real choice for Australian governments, agencies and businesses is whether to build or buy.

"The build path enables the development of local capability and superior performance using Australia's own population health data.

"The buy path - buying into overseas AI health models - risks hollowing out local capability and creating dependency on foreign companies."

Equity concerns

St Vincent's also argued that the direction of AI investment in healthcare should not be left entirely to commercial incentives. It said market-led investment may favour applications and patient groups with stronger financial returns over those with the greatest health need.

The submission said there is a risk that the benefits of AI in healthcare could reach people already better served by the system before vulnerable groups. It pointed to people experiencing homelessness and those living with complex health conditions as examples of populations that can be overlooked.

Dr Robinson said policy settings should steer investment towards broader public outcomes.

"Left solely to market forces, AI investment will flow to areas delivering the greatest commercial return, not necessarily where Australians need it most," Dr Robinson said.

"There are also risks that the benefits of AI developments in healthcare flow first to people who are already healthy, well-off and digitally confident, and that people who find healthcare hardest to reach are not included in system design.

"Research contributions should prioritise people most at risk, but often overlooked by traditional healthcare settings, such as people experiencing homelessness or people living with complex health conditions. We recommend setting parameters that encourage innovation that does not leave people behind and does not simply entrench existing commercial interests.

"Australia has an opportunity to become a global leader in responsible healthcare AI, but that opportunity will not remain open indefinitely.

"The decisions governments make today about data, infrastructure, procurement and research investment will determine whether Australia helps build the next generation of healthcare AI or simply imports it from elsewhere."