AI can boost Australia’s growth if we are willing to do the hard work

Higher productivity does not necessarily mean fewer workers. In most cases, this means that workers do more valuable work. AI is expected to complement, not replace, most jobs, particularly by taking over routine tasks. Early evidence shows that it is already saving time, freeing up capacity and enabling companies to achieve more with the same workforce.

However, the implementation of investments and even the introduction of productivity improvements is not automatic. Productivity improvements require deep business transformation; new processes, new decisions and new skills. Acceptance is important, but widespread institutional change and the transformation of existing business practices will be crucial. The countries that can achieve this more quickly will be the ones that will achieve the greatest productivity gains.

Australia has a structural problem here. Despite strong data center activity, the Productivity Commission estimates Australia’s likely AI productivity growth at just 0.4 percentage points per…