Generative artificial intelligence that can look at a trillion words at once will change the way people work by boosting productivity as well as risks, experts say.
"If we go back to the iPhone in 2007, we think about the evolution of the cloud, and now with AI, what we often discover is that how we use that technology is far different to what we might have imagined in the beginning," Microsoft's Steven Worrall told AAP.
Speaking from Washington, the managing director of the tech giant's Australasian business said AI services will create new industries.
But the so-called large language models at the heart of these services are vast and require a quantum leap in computing capacity.
Imagine interacting and reasoning with this trove of data in what is called natural language, which makes the computer respond to commands, translate from one language to another and instantly summarise text.
Over the next two years, as part of a $5 billion spending spree on Aussie infrastructure, the tech giant will build more data centres to support expansion of cloud and AI technology.
"You've got a nation that's crying out for productivity leaders - Australia has productivity challenges," Mr Worrall said.
"You've got technology that's evolving - we're just about to start leveraging it in real time as we start to go live with some of our Copilot services."
Copilot is an AI assistant that works alongside programs such as Word, Excel and PowerPoint or while editing photos or writing an email, for example, to simplify complicated tasks.
But there is still a lot of fear, Mr Worrall said.
"People are still asking, 'Is this going to take away my job, let alone give me one?'"
Microsoft plans to collaborate more directly with government, with TAFEs in particular and with universities to give more people access to new jobs.
"Let's democratise access so you can do an online class, you can do a one-week class or one month or six months," Mr Worrall said.
"Using all of those building blocks, you can ladder up to a Cert IV in tech from your local vocational provider."
Beyond that, people can build to a diploma or university degree.
The Tech Council says Australia will need 1.2 million workers in this sector by 2030 - up from 875,000 today.
"That's a big chunk. These are great jobs, secure jobs," Mr Worrall said.
"But we need to find new ways to get people to come into the sector, in particular more women, people with a disability, First Nations talent and people living in regional parts of the country."
John Kaleski, cloud partner at software company Mantel Group, said Microsoft's spending is largely in anticipation of the enormous growth in generative AI.
"We are already seeing huge demand for services in the cloud and data domains and Microsoft's investment will further accelerate this growth."
But he warned Australia already has a shortage of technology experts.
"Microsoft's plan to provide an extra 300,000 places under its global skills program will ultimately help organisations innovate in the cloud and AI-enabled digital economy more efficiently with access to a larger pool of talent," he said.
Sumit Bansal, vice-president at cyber firm BlueVoyant, said the investment, which includes work on a cyber shield with security agencies, would help boost protection from threats.
Cyber criminals are exploiting vulnerabilities these faster and faster, sometimes in a matter of days.
"Organisations in Australia have recently been targeted ... these incidents should serve as a wake-up call," he said.
