The release of the roadmap, in consultation since 2023, comes after it said in August that AI would become a national priority as it consulted on copyright law changes to protect creative industries from threats posed by the technology.
Industry Minister Tim Ayres said the plan charted a path for an Australian economy that captured AI's opportunities, spread its benefits and kept Australians safe.
Senator Ayres on Tuesday said the national plan gave clear guidance to government, industry, researchers and communities that would attract global investors.
"Australia is an extraordinary place for investment," he told ABC Radio.
"We have enormous land mass in terms of digital infrastructure for a start, with proximity to the fastest growing markets in human history in Southeast Asia and the broader Indo-Pacific."
The government accepted business demands to pause "mandatory guardrails" over AI, instead committing to using "strong, existing, largely technology-neutral legal frameworks" to manage AI in the short term.
Mandatory guardrails would have operated under standalone AI legislation which would have categorised technologies based on risk with stricter rules.
The Business Council of Australia welcomed the plan and said the transformational technology would lift productivity and improve Australians' quality of life.
"(The plan) identifies where domestic capability can be built, the skills we will need in the workforce, and how innovation can be accelerated across the economy," the council's chief executive Bran Black said.
"We're pleased to see the plan picks up many of the actions we've advocated for on behalf of the business community."
The government recently pledged $29.9 million to establish an AI Safety Institute in 2026 to ensure official monitoring and response to AI risks, supporting agencies and regulators.
Senator Ayres said frameworks will be developed around significant energy and water usage associated with AI.
The plan outlines steps the federal government is already taking to integrate AI into public services.
These include embedding AI in government operations through the secure GovAI platform, piloting generative AI in schools and strengthening the digital and data skills of public service employees.
"The Australian government is working to expand the safe and responsible use of AI to all government agencies to help create consistent, high-quality services for people," the plan said.
"The government aims to lead by example, lifting the productivity of the public sector and providing better job satisfaction."
It also described efforts to accelerate investment in the supporting infrastructure for AI such as data centres.
"It is in our interests to ensure that AI development happens locally, where it aligns with our national priorities, social and economic interests," the plan says.
"It positions us to lead in shaping ethical standards, secure technologies and competitive industries, and ensures that AI serves Australian communities and businesses first."
Every Australian should be able to benefit from AI but regional and disadvantaged voices must be elevated to ensure communities aren't left behind, it says.
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