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Allan also said Victoria could lead the way on AI development. She said advancements in the field was estimated to add $30 billion to state product over the next decade.<\/p>\n
But she acknowledged a delicate balancing act to protect the people whose jobs were affected or even replaced by the emerging technology, arguing AI could create more jobs than it took away if handled correctly.<\/p>\n
\u201cI\u2019m the daughter of a man who worked with his hands. I watched him made redundant with the stroke of a pen,\u201d Allan said.<\/p>\n
\u201cI don\u2019t want a future where a politician \u2013 40 years from now \u2013 has to say, \u2018I\u2019m the daughter of a man who used to work with a screen\u2019.<\/p>\n
\u201cWe can maximise the benefits \u2013 while protecting our people \u2013 so workers are better off from the change, not left behind in its wake.\u201d<\/p>\n
To achieve this, Allan said the government would introduce two new AI-focused policies.<\/p>\n
She pledged to make Victoria the country\u2019s hub for data centres \u2013 large facilities that house the servers and storage needed to enable AI \u2013 but raised concerns about the energy and water they would require.<\/p>\n
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The Stargate AI data centre in Texas is one of several projects being built in the United States.Credit: Bloomberg<\/p>\n
The state government will spend $5.5 million on a sustainable data centre action plan to help determine where the centres should be located so they are close to power, water and transport without straining Victoria\u2019s existing resources.<\/p>\n
This plan will also work with the TAFE sector to develop workers who can help deliver this pipeline of centres, which the state estimates could be worth up to $25 billion in capital expenditure.<\/p>\n
Australian Bureau of Statistics data released on Thursday showed a massive rise in spending on media and telecommunications buildings and equipment in 2025, partly driven by the rush across the world to build more data centres.<\/p>\n
Allan also pledged $8.1 million for \u201cAI career conversion\u201d to help workers, whose jobs are affected by the technology, to become AI specialists.<\/p>\n
\u201cWe\u2019ll target the sectors where we can make the biggest difference, fast,\u201d she said. \u201cAnd we\u2019ll offer it to more than 1300 workers who are most at risk.\u201d<\/p>\n
Allan\u2019s comments come almost a year after she unveiled her Economic Growth Statement, a range of policies aimed at encouraging private sector investment and reassuring business on Labor\u2019s economic credentials.<\/p>\n
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State Opposition Leader Jess Wilson has sought to make the economy front and centre of her pitch to voters, setting the stage for a 2026 election campaign that will focus more heavily on jobs after a year in which crime has dominated both sides of politics.<\/p>\n
Allan told the Committee for Economic Development of Australia lunch that some businesses disagreed with her commitment to legislate the right to work from home, but she would push on with the policy anyway.<\/p>\n
\u201cI\u2019ve listened to their views. I respect them. I haven\u2019t changed my mind,\u201d she said. \u201cAnd in the years to come, I think those businesses will change theirs.\u201d<\/p>\n