AI may be a bubble and has not yet lifted Australia’s productivity, RBA governor says
Reserve Bank of Australia Governor Michele Bullock said artificial intelligence could be a bubble and that there was no evidence so far that it had made Australia’s economy more efficient. She said AI adoption was adding to inflation rather than economic growth, while also describing a recent fall in house prices as unusually deep.
Reserve Bank of Australia Governor Michele Bullock said artificial intelligence could be a bubble and that there was no evidence it was making Australia’s economy more efficient.
Bullock said AI was a “great white hope,” but its adoption was so far adding to inflation rather than economic growth. Her comments came as the Albanese government argued that the technology would help address Australia’s economic malaise.
She also said the decline in house prices was deeper than other recent downturns in Australia. The remarks came ahead of an expected interest-rate rise the following week.
THE QUESTIONS THIS EVENT LEAVES BEHIND
What evidence would show that AI is improving Australia’s productivity rather than increasing inflation?
Who benefits if expectations of AI-driven economic growth remain high despite limited measured gains?
How might an interest-rate rise affect businesses investing in AI?
What conditions would cause the RBA to revise its assessment of AI’s economic impact?
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