As AI reshapes labour markets, Australian policymakers find themselves reactive rather than strategic. Geographic isolation intensifies the risk. Political economy thinking offers better tools for governing technological transitions strategically, but these remain outside mainstream policy practice. Bringing them back requires political action: building institutions, allocating resources, and challenging existing distributions of influence.

This is the first of a series on what makes good public policy. Further Insights will be published weekly on Tuesdays. Other Innovation...