Michele Bullock says AI hasn't boosted productivity yet, risks bubble
RBA governor Michele Bullock said no evidence shows AI improving economy despite government counting on it for growth.
The RBA governor warned AI could be a bubble and sees no proof it helps Australia's economy. The government's long-term plan relies on AI boosting growth.
Bullock said using AI so far just adds to inflation. Research from South Korea found workers using AI did the same work but worked 1.5 hours less each week.
Real gains only come when businesses change how they use AI. They can't just add it to current work.
A sharp drop in tech stock prices could hurt the overall economy.
- Michele Bullock
- RBA governor
- 1.5 hours
- Weekly work reduction in South Korea
- $157,300 from $99,200 today
- Per-capita activity projection 2066
- 1.2 per cent
- Assumed annual productivity improvement
Why it mattersRBA skepticism about AI's economic benefits could reshape interest rate decisions and push back against growth forecasts the government relies on.
AustraliaAustralia's economic projections to 2066 assume AI will drive productivity gains the RBA now questions, potentially undermining budget forecasts.
✓ Claims checked against the source. checked 2 d ago
