AI could be a bubble and is not yet making Australia more productive, Michele Bullock says

Australia's Reserve Bank governor, Michele Bullock, has expressed concerns that the adoption of Artificial Intelligence (AI) may be creating a bubble. This is because so far, AI has not led to increased productivity in the economy, but rather contributed to inflation. As a result, the economic benefits of AI, which the government had hoped would solve Australia's economic problems, have not materialized. This raises questions about the true value of AI in the Australian economy.

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The Reserve Bank governor says AI is adding to inflation rather than economic growth. This could lead to higher prices and lower consumer spending.

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