RBA Governor Questions AI's Productivity Impact

2026-09-25

Reserve Bank of Australia Governor Michele Bullock stated that while AI is a significant development, its current adoption is contributing to inflation rather than boosting economic productivity. She expressed concerns about a potential AI bubble.

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Reserve Bank of Australia Governor Michele Bullock believes artificial intelligence is currently adding to inflation, not boosting productivity. She expressed concerns that rapid investment in AI might indicate a bubble.

Key facts

Reserve Bank of Australia Governor Michele Bullock stated that AI's current adoption is contributing to inflation.
Bullock cautioned that AI is not yet fostering economic growth.
She expressed concerns about a potential AI bubble due to rapid investment.
The RBA's assessment highlights challenges in quantifying productivity gains from AI adoption.

Source: Guardian · Tech policy

Reported by VERA Newswire.