EY Report Projects AI Could Add $116 Billion to Australian GDP

A report from consultancy Ernst & Young indicates that artificial intelligence could increase Australia's productivity by up to 2.4 percent over the next ten years. This growth would potentially add $116 billion to the real GDP and create 44,000 jobs, potentially reversing a decade of declining living standards and weak productivity growth.

Regional chief economist Cherelle Murphy stated that AI is more likely to augment existing roles than replace them. However, she noted that achieving these economic benefits depends on workforce reskilling and the establishment of a regulatory framework to build user trust.

In tandem with these developments, the Australian government is implementing stricter requirements for AI and infrastructure. Energy Minister Chris Bowen announced that data centres must now underwrite new energy generation via the renewable electricity guarantee of origin scheme to offset their power consumption. These moves follow a July announcement by Prime Minister Anthony Albanese regarding the introduction of legal requirements for data centres and AI usage.