Australia ranked first in the world in eight of 103 artificial intelligence capabilities, putting it well above most other countries, research from the Tech Policy Design Institute showed.
It leads in medical and geospatial datasets, along with infrastructure data and computer model development.
Australia also ranked second out of 89 countries for dealing with the AI-fuelled digital revolution, pipped only by the US, a QS World study found in June.
The institute's co-founder Zoe Jay Hawkins said the credentials made Australia ripe for international influence, encouraging other nations to stand firm against the competing demands of the US and China.
Leaders from 20 countries released a statement on Tuesday calling for increased oversight of AI systems.
The US, China and the UK were not among the signatories, just a day before a UN General Assembly meeting began in New York.
The institute has also urged the government to take a hardline approach to a pending digital duty of care legislation, including standing by funding to allow users to seek direct redress and giving competitive advantage for platforms that seek to keep users safe.
The US raised "serious concerns" about the government's plan in a release on Tuesday, saying it could amount to a facilitation of censorship.
But a strong policy would not only keep Australians safe, it would also simplify online spaces in the long-term and set the nation apart as a leader, Ms Hawkins said.
"Australia has a track record as a trusted broker and leader in tech diplomacy to step up," Ms Hawkins said.
"It's really a delicate dance for Australia, like many middle powers right now trying to secure their agency and regulate their citizens at home."
The country had "strength in numbers" for working with other middle powers to withstand resistance.
"We have some really strong cards to play,'' Ms Hawkins said.
''This isn't the first time Australia has taken a firm stance against resistance from the US - in some ways, this is a path we have quite boldly paved already."
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