\u201cAll central banks are a little bit worried about that,\u201d Bullock said.<\/p>\n
\u201cSome people think it\u2019s a bubble, some people don\u2019t. I don\u2019t have a particular view one way or the other, but it\u2019s a risk that I think we\u2019re watching.\u201d<\/p>\n
Bullock said the RBA and its overseas colleagues believed AI was \u201cthe great white hope\u201d to make economies more productive but had seen little sign of any effect yet, with rapid adoption and investment in datacentres adding to inflation instead.<\/p>\n
She cited research from the RBA\u2019s South Korean counterpart<\/a> that found employees adopting AI tended to produce the same output but work 1.5 hours less each week.<\/p>\n \u201c[While] people fiddle around and try and figure out what to do with this new technology, productivity actually can decline,\u201d Bullock said. \u201cBut once we reimagine our business processes\u2026 then you might see productivity take off.\u201d<\/p>\n The Australian government\u2019s intergenerational report, released on Tuesday, relied on the potential \u201cprofound\u201d boost from AI in its projection that Australians\u2019 inflation-adjusted per-person economic activity would rise from $99,200 today to $157,300 by 2066.<\/p>\n The treasurer, Jim Chalmers, told the Guardian\u2019s Australian Politics podcast: \u201cIt\u2019s the most transformative thing that will happen in our lifetime.\u201d<\/p>\n The report assumed productivity would return to its long run level of improving by 1.2% a year, which economists have said appears unlikely. If productivity only rose by 0.8%, per-person activity would only hit $136,600 by 2066.<\/p>\n Bullock said on Tuesday: \u201cMany have put it, \u2018well, it\u2019s an unrealistic assumption, we\u2019re not going to get that.\u2019 I guess the way I\u2019m trying to think about it is, \u2018OK, that\u2019s what we\u2019ve got to aim at.\u201d<\/p>\n Housing downturn<\/p>\n As the government defends Australia\u2019s easing rate of immigration, Bullock said immigration was almost entirely responsible for Australia\u2019s economic growth in the last year.<\/p>\n
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