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AIQuiet 4d · day 4

RBA chief Bullock warns AI could be a bubble, isn't yet boosting productivity

Australia's central bank governor challenges government claims that AI will solve economic malaise, citing evidence it's adding to inflation instead.

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What to know

  • Australia's central bank governor directly contradicts the government's economic forecast by warning AI could be a bubble with no evidence yet of improving productivity.
  • Current AI adoption is driving inflation through datacentre investment rather than delivering efficiency gains, according to RBA analysis of South Korean labor data.
  • The government's intergenerational report assumes 1.2% annual productivity growth from AI, but economists say this is unrealistic and a 0.8% rate would sharply lower living standards projections.
  • RBA expects an interest rate rise next week amid persistent inflation, even as tech stocks surge on recent AI developments like Meta's new Muse agent.

“Where it bites is the housing market, because the housing market can't respond.”

Michele Bullock, RBA Governor · The Guardian ↗

Michele BullockMichele Bullock RBA GovernorJim ChalmersJim Chalmers Australian TreasurerTony BurkeTony Burke Australian Home Affairs Minister

RBA chief Bullock warns AI could be a bubble, isn't yet boosting productivity
theguardian.com

How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts

Peak 3 pieces in one hour at Sep 22, 4 AM; 4 pieces over 4 days (3 articles · 1 post) Sep 22, 4 AM — 3 pieces · 3 articles — Newswires 2, Google News 1Sep 22, 5 AM — quietSep 22, 6 AM — quietSep 22, 7 AM — quietSep 22, 8 AM — quietSep 22, 9 AM — quietSep 22, 10 AM — quietSep 22, 11 AM — quietSep 22, 12 PM — quietSep 22, 1 PM — quietSep 22, 2 PM — quietSep 22, 3 PM — quietSep 22, 4 PM — quietSep 22, 5 PM — quietSep 22, 6 PM — 1 piece · 1 post — Reddit 1Sep 22, 7 PM — quietSep 22, 8 PM — quietSep 22, 9 PM — quietSep 22, 10 PM — quietSep 22, 11 PM — quietSep 23, 12 AM — quietSep 23, 1 AM — quietSep 23, 2 AM — quietSep 23, 3 AM — quietSep 23, 4 AM — quietSep 23, 5 AM — quietSep 23, 6 AM — quietSep 23, 7 AM — quietSep 23, 8 AM — quietSep 23, 9 AM — quietSep 23, 10 AM — quietSep 23, 11 AM — quietSep 23, 12 PM — quietSep 23, 1 PM — quietSep 23, 2 PM — quietSep 23, 3 PM — quietSep 23, 4 PM — quietSep 23, 5 PM — quietSep 23, 6 PM — quietSep 23, 7 PM — quietSep 23, 8 PM — quietSep 23, 9 PM — quietSep 23, 10 PM — quietSep 23, 11 PM — quietSep 24, 12 AM — quietSep 24, 1 AM — quietSep 24, 2 AM — quietSep 24, 3 AM — quietSep 24, 4 AM — quietSep 24, 5 AM — quietSep 24, 6 AM — quietSep 24, 7 AM — quietSep 24, 8 AM — quietSep 24, 9 AM — quietSep 24, 10 AM — quietSep 24, 11 AM — quietSep 24, 12 PM — quietSep 24, 1 PM — quietSep 24, 2 PM — quietSep 24, 3 PM — quietSep 24, 4 PM — quietSep 24, 5 PM — quietSep 24, 6 PM — quietSep 24, 7 PM — quietSep 24, 8 PM — quietSep 24, 9 PM — quietSep 24, 10 PM — quietSep 24, 11 PM — quietYesterday, 12 AM — quietYesterday, 1 AM — quietYesterday, 2 AM — quietYesterday, 3 AM — quietYesterday, 4 AM — quietYesterday, 5 AM — quietYesterday, 6 AM — quietYesterday, 7 AM — quietYesterday, 8 AM — quietYesterday, 9 AM — quietYesterday, 10 AM — quietYesterday, 11 AM — quietYesterday, 12 PM — quietYesterday, 1 PM — quietYesterday, 2 PM — quietYesterday, 3 PM — quietYesterday, 4 PM — quietYesterday, 5 PM — quietYesterday, 6 PM — quietYesterday, 7 PM — quietYesterday, 8 PM — quietYesterday, 9 PM — quietYesterday, 10 PM — quietYesterday, 11 PM — quietToday, 12 AM — quietToday, 1 AM — quietToday, 2 AM — quietToday, 3 AM — quietToday, 4 AM — quietToday, 5 AM — quietToday, 6 AM — quietToday, 7 AM — quietToday, 8 AM — quiet 12
Sep 23Sep 24yesterdaynow · 9:20 AM ET
  1. background

    Australian government releases intergenerational report projecting AI-driven growth — The Albanese government's intergenerational report, released Tuesday, projects per-person economic activity would rise from $99,200 today to $157,300 by 2066, based partly on assumed 1.2% annual productivity growth driven by AI adoption.

  2. 2

    Government's productivity assumption deemed unrealistic by economists

    The intergenerational report assumes productivity will return to 1.2% annual growth; economists have said this appears unlikely. If productivity only rose 0.8%, per-person activity would reach $136,600 by 2066 instead of $157,300.

  3. background

    Bullock warns current AI adoption is adding to inflation, not growth — Bullock said the RBA and overseas colleagues viewed AI as 'the great white hope' for productivity but had seen little sign of effect yet, with rapid adoption and datacentre investment instead adding to inflation.

  4. 1

    Bullock challenges AI productivity assumption at CEDA event

    At a CEDA event in Sydney, RBA Governor Michele Bullock said AI could be a bubble and there was no evidence it is making the economy more efficient. She cited South Korean central bank research showing employees adopting AI produced the same output but worked 1.5 hours less per week.

    “[While] people fiddle around and try and figure out what to do with this new technology, productivity actually can decline.”
    — Michele Bullock
    1. 2 outlets AI could be a bubble and is not yet making Australia more productive, Michele Bullock says

      first by The Guardian, 4d ago · also Guardian