By Clancy Yeates
Publication Date: 2025-11-23 00:00:00
What really matters for material living standards in the long run is productivity – the economy’s output of labor and capital. It’s easy to understand why people think AI will one day do wonders for productivity, but it’s equally clear that we’re not there yet.
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A recent article in the Reserve Bank bulletin provides compelling evidence that many Australian businesses are in the process of figuring out how to use AI rather than implementing detailed plans.
The article, by economists Joel Fernando, Kate McLoughlin and Ravi Ratnayake, is based on findings from a survey of more than 100 medium to large companies that the RBA speaks to as part of its liaison program.
It found that while companies expect AI investments to make a meaningful difference in the future, AI adoption is still at an early or even experimental stage for many companies.
Nearly 40 percent of companies said they have “minimal” use of AI tools, and in these cases…
