FirstWave secures CSIRO-backed funding for AI compliance software development
FirstWave Cloud Technology (ASX: FCT) has been awarded funding under the CSIRO Regional University Industry Collaboration (RUIC) program for the FirstWave CSIRO AI Compliance Project, valued at $264,982. The project is co-funded by the University of Sunshine Coast ($168,982), the Queensland Government ($48,000), and FirstWave ($48,000), with additional in-kind contributions from participating institutions. The collaboration involves UniSC’s Cyber Security Lab and CSIRO, positioning FirstWave alongside credible research institutions in advancing AI-driven compliance management software.
The external co-funding structure reduces FirstWave’s capital outlay whilst accelerating product development. For investors, this represents a capital-efficient approach to R&D that leverages government and academic resources to advance commercial objectives. The backing from CSIRO and a regional university signals alignment with national cybersecurity priorities whilst potentially opening pathways to future government contracts.
What is the CSIRO RUIC program?
The CSIRO Regional University Industry Collaboration program connects regional universities with industry partners to accelerate commercial innovation. CSIRO, Australia’s national science agency, facilitates these partnerships to translate research into market-ready applications. RUIC projects typically focus on areas of national strategic importance, including cybersecurity, digital infrastructure, and emerging technologies.
For industry participants like FirstWave, RUIC involvement provides access to specialised research expertise and infrastructure that would be costly to develop internally. The program structure requires co-funding from government, academic, and commercial partners, creating a shared investment model that de-risks early-stage R&D. Government backing through RUIC also serves as external validation of a project’s strategic merit and commercial potential.
Participation in a CSIRO-backed program positions FirstWave within Australia’s broader cybersecurity and AI research ecosystem, potentially creating opportunities for expanded collaboration and future funding rounds as the technology matures.
Project scope and commercial application
FirstWave and UniSC’s Cyber Security Lab will develop production-ready AI and machine learning models for network intelligence and compliance software. The project aims to deliver enhancements that enable enterprise and government customers to identify emerging network and security issues earlier, reduce unplanned downtime, and improve the resilience of mission-critical digital infrastructure.
The technical approach centres on developing a contextual, state-aware AI framework that incorporates real-world operational conditions. This includes workload behaviour, dynamic routing, cloud scaling events, and automation. Machine learning models will be validated using live operational data from FirstWave’s platforms to ensure direct commercial relevance, scalability, and suitability for global deployment.
FirstWave’s software is estimated to be used by more than 150,000 organisations across 178 countries under a freemium model. The company’s existing client base includes Microsoft, Telstra, John Deere, U.S. Army & Air Force, Claro, Raytheon, Telmex, Macquarie Cloud Services, and NASA.
| Project Element | Detail |
|---|---|
| Total Project Value | $264,982 |
| UniSC Contribution | $168,982 |
| Queensland Government Contribution | $48,000 |
| FirstWave Contribution | $48,000 |
| Primary Focus | AI-powered compliance and network intelligence |
| Validation Method | Live operational data from existing platforms |
The validation against live operational data ensures commercial relevance. This is not theoretical R&D but product-focused development aimed at global deployment across FirstWave’s existing user base. The project supports national priorities in cybersecurity and digital resilience, contributing to Australia’s capability in autonomous systems, secure data analytics, and intelligent infrastructure.
Strategic alignment with FirstWave’s existing platforms
The FirstWave CSIRO AI Compliance Project builds on the company’s existing NMIS and Open-AudIT platforms, which already incorporate anomaly detection and machine learning capabilities. The collaboration accelerates FirstWave’s strategic shift from traditional network monitoring towards intelligent, predictive network and compliance management.
The development progression follows three stages:
- Current state: Traditional network monitoring via NMIS and Open-AudIT platforms deployed across more than 150,000 organisations in 178 countries
- Existing capability: Anomaly detection and machine learning features embedded within current platforms
- Future state: Predictive, AI-driven compliance management with contextual awareness and real-time operational intelligence
This progression extends existing infrastructure rather than building from scratch, reducing development risk and time-to-market. The project leverages operational data already collected through FirstWave’s platforms, providing a substantial dataset for training and validating machine learning models without requiring new data collection infrastructure.
Monetisation opportunity across global user base
FirstWave operates a freemium business model, with software deployed across an estimated 150,000+ organisations in 178 countries. The FirstWave CSIRO AI Compliance Project aims to develop advanced AI-powered compliance features that can be offered as premium capabilities to convert free users into paying customers.
The monetisation thesis centres on delivering predictive compliance management and intelligent network monitoring as value-added services. Organisations using FirstWave’s free software have already integrated the company’s platforms into their infrastructure. Offering AI-driven enhancements as premium features provides a clear upgrade path with established distribution channels already in place.
The R&D investment aims to unlock revenue from an established global footprint. FirstWave’s client base spans government agencies, defence organisations, telecommunications providers, and enterprise customers across multiple sectors. The distribution channel exists, and the project focuses on building premium features to monetise it whilst supporting Australia’s national cybersecurity capabilities.
Management commentary
Danny Maher, Managing Director and CEO of FirstWave, framed the collaboration as accelerating the company’s AI compliance strategy whilst strengthening Australia’s cybersecurity resilience.
Danny Maher, Managing Director and CEO
“This collaboration brings key expertise that we need and accelerates our ability to deliver intelligent, predictive compliance for organisations worldwide. By combining UniSC’s capabilities with our global footprint and the extensive network data collected through our platforms, we are strengthening Australia’s cybersecurity resilience while advancing the AI that underpins our compliance management stack.”
What comes next for FirstWave?
The $264,982 project represents an initial collaboration under the CSIRO RUIC program, suggesting potential for expanded partnerships as the technology matures. FirstWave’s focus remains on global deployment and scalability of the AI models being developed through this partnership.
The dual benefit of commercial product advancement and contribution to Australia’s national cybersecurity capability positions FirstWave within the broader strategic priorities of government and academic research institutions. For investors, the CSIRO and UniSC partnership provides a foundation for ongoing R&D collaboration that may reduce future development costs whilst maintaining product competitiveness in the AI-driven compliance management market.
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