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

RBA governor says AI is ‘great white hope’ but its adoption is so far adding to inflation, rather than economic growth

The Reserve Bank governor said AI could be a bubble and there was no evidence it is making the economy more efficient, as the Albanese government claims the technology will solve Australia’s economic malaise.

Ahead of an expected interest rate rise next week, Michele Bullock also said the slump in house prices was deeper than others in Australia’s recent history.