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Could AI solve Australia's productivity puzzle? It's complicated

The use of AI is on the rise. Its potential to usher in a new era of productivity growth is undeniable. But it's far from certain.

Daniel Van Boom and Jennifer Duke
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Technology improvements have historically taken time and seen uneven uptake by different businesses and sectors. AAP Image/Nir Elias.

The hype about the risks and awe-inspiring potential of artificial intelligence has reached deafening levels over the past couple of years.

Academics and and analysts have waxed lyrical about the ability of AI to usher in a revolution in the ways that we work. For example, MIT research suggests the use of AI can boost worker's productivity by up to 40%, while the McKinsey Global Institute has forecast a USD13 trillion boost the global economy by 2030.

At the same time, Australia's productivity growth has been languishing since the mid-2000s with the last decade marking the slowest rate of improvement in over 60 years. This is a challenge developed countries across the world are grappling with as productivity growth helps to improve living standards and drive wages and economic growth.

So, could AI provide the keys to finally unlock productivity growth in Australia, a problem that has bedevilled policymakers for years? The key government advisory body focused on exactly that isn't so sure.