AI could be a bubble and is not yet making Australia more productive, Michele Bullock says
Reserve Bank of Australia governor Michele Bullock has warned that AI may be an economic bubble and has yet to demonstrate a positive impact on national productivity. She noted that current AI adoption is contributing to inflation rather than growth.
Why it matters
The comments from a central bank leader challenge the prevailing optimism surrounding AI's immediate economic benefits and highlight potential risks to financial stability.
RBA governor Michele Bullock speaks at the CEDA event on Tuesday. Photograph: Dan Himbrechts/AAP RBA governor Michele Bullock speaks at the CEDA event on Tuesday. Photograph: Dan Himbrechts/AAP AI (artificial intelligence) AI could be a bubble and is not yet making Australia more productive, Michele Bullock says RBA governor says AI is ‘great white hope’ but its adoption is so far adding to inflation, rather than economic growth
Prefer the Guardian on Google The Reserve Bank governor said AI could be a bubble and there was no evidence it is making the economy more efficient, as the Albanese government claims the technology will solve Australia’s economic malaise.
Ahead of an expected interest rate rise next week, Michele Bullock also said the slump in house prices was deeper than others in Australia’s recent history.
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