AI could be a bubble and is not yet making Australia more productive, Michele Bullock says
Australia's Reserve Bank governor Michele Bullock has said there is no evidence AI is improving economic productivity, and that its adoption is currently adding to inflation rather than driving growth. She cautioned that AI may be a speculative bubble, pushing back against the government's framing of the technology as an economic fix.
Why this matters: When a central bank governor says AI might be a bubble, that is worth taking seriously. Governments and corporations are making enormous spending commitments based on productivity promises that, at least in Australia, are not showing up in the data yet. That gap between hype and evidence matters because public money, policy decisions, and real regulatory trade-offs are all being shaped by the assumption that AI pays off. If it does not, the costs do not land on the companies selling the tools.
Who should care: General readers · AI governance · Policy
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