The central bank governor has cast doubt on artificial intelligence’s role as an economic savior, warning its current adoption may be fueling inflation rather than driving productivity gains. While the government has touted AI as a solution to Australia’s economic challenges, the governor suggested the technology could even be forming a speculative bubble without clear benefits. Concerns over a sharper-than-expected housing market downturn were also highlighted as part of broader economic pressures. The remarks come ahead of a widely anticipated interest rate decision.
RBA governor says AI is ‘great white hope’ but its adoption is so far adding to inflation, rather than economic growthGet our breaking news email, free app or daily news podcastThe 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. Continue reading...
