Should we be scared about AI? I asked Australia’s top expert

June 28, 2026 — 5:00am

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Few Australians have had a closer view of the digital revolution than Daniel Petre AO. From Microsoft’s headquarters in the Bill Gates era to backing some of Australia’s most successful tech companies, he has spent nearly four decades at the forefront of innovation.

Fitz: “Daniel Petre,” they said, “he’s the smartest bloke in Australia on artificial intelligence,” they said. “He knows more about AI and the impact of it than any other bastard in the country!” they said. “Daniel Petre?” I said. “I single-handedly carried him over the Kokoda Track 25 years ago, or he carried me, I forget.” But Daniel, is that you? Are you the AI guy?

DP: [Laughing.] Look AI is so fast-moving I’m struggling like most to understand exactly what’s going on and keep up-to-date. But, yes, I spend a lot of time on doing exactly that.

Fitz: In that case, we need to establish your bona fides as a tech-bro-tech-head. I’ve got you down as graduating from Turramurra High in the mid-70s, to studying computer science, to rising so hard and fast you were a vice-president of Microsoft by the early 1990s?

DP: More or less. I then returned from the US due to a family tragedy, ran advanced software technology group for Microsoft, and then ended up leaving to do venture capital in the tech space for 30 years, and have remained quite close to Bill [Gates] since the late 1980s.

Fitz: OK, you’re hired. I have been stunned by both the power of AI, and its growing impact. But how does it work? Can you explain – as you would to a 10-year-old – how it interprets my instructions, and comes up with an answer, as if it’s a human?

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DP: It is very complicated, but when you write a question it looks through trillions and trillions of data points as to what is the most logical next word or number to put in, in reply. And so it effectively builds sentences by assessing what’s the most probable next word to make an answer to your question – while also learning from your response. So it’s not just giving a response and getting back in its box. It gives the response, and then it learns from your response and everyone’s responses, and keeps getting better.

Fitz: So, if I ask it, “what did the quick brown fox jump over?” It will search, search, search – not “black wombat”, not “yellow chicken” but yes to “lazy dog”! So it is collating the answers to that question, not just from me, but from everybody, and so its “brain” is getting bigger?

DP: Yes. But this is not just a party trick. Everyone must understand this is the most significant technology that has ever been developed. AI will touch every single job in every single company, in every single industry, in every aspect of society – and its impact is already going wider, deeper and faster than ever before. An example would be three years ago, in terms of maths capability, it was about at HSC level. Eighteen months ago, it was university undergraduate maths, and now it’s at PhD level. The capabilities of this technology are going to continue to increase incredibly quickly.

Fitz: On the one hand, there’s a great fear that it’ll wipe out huge swaths of the economy and employment market. Against........

© The Sydney Morning Herald