Technological evolution has made massive leaps in their developments, producing concepts, objects, and systems that have significantly impacted our society. A major example of such development is the creation of reliable artificial intelligence that could assist and boost the efficiency of whatever and wherever it is applied
With Australia’s productivity struggling, it is discovered that perhaps artificial intelligence (AI) might hold the key to reversing Australia’s productivity slump, according to the outgoing Productivity Commissioner Michael Brennan. To solve the current economic issues, it is proposed that AI can become a transformative force capable of reviving productivity growth in developed economies. This article will explore how AI’s potential to enhance human labour across service industries aligns with growing market demand yet also raises regulatory considerations.
Australian productivity struggles
In recent news, as the Western world battles to recover from a slump in workplace efficiency, Australia’s outgoing productivity czar has identified artificial intelligence as a potentially “significant” driver of a productivity revolution. This is further supported by Productivity Commissioner Michael Brennan, who stated that AI is perhaps one of the most vital and highly potential technologies that could lead to the improvement of economic output in coming decades while emphasising that it was still in an early phase of development.
Australia is currently experiencing a drop in productivity as a result of a recent government report examining trends in the decades ahead, which predicted that Australia’s long-term productivity growth would be 1.2% annually, down from 1.5% in the same report just two years ago. The 0.3 percentage point decline in productivity will reduce expected real GDP by about 10% over the next forty years. This report further emphasises that currently developed economies across the world have seen a drop in productivity as easy gains from technology advancements begin to dry up.
Brennan, on the other hand, expressed optimism about the possibility of future gains. As of now, the extent of how far artificial intelligence and machine learning could go is unknown, but a brief examination reveals that there is enormous potential for these technologies to aid and complement human labour across a wide range of industries, particularly service industries.
Market Demands for AI
In recent months, market demand for AI programs and chips has boosted the reputation of companies involved with the new technology, like chipmaker Nvidia, which anticipated enormous earnings for the three-month period ending in October. At the same time, governments around the world are debating the advantages and disadvantages of AI technology.
Following a substantial level of interest from stakeholders, the Australian government extended a consultation into potential AI regulations earlier in August. Minister of Industry and Science Ed Husic told Bloomberg that he planned to finish the laws by the end of 2023.
Brennan expressed confidence that the government would approach AI legislation “thoughtfully,” adding that the technology was not “completely risk-free.” A balance principle must be established to allow for innovation while reminding ourselves that AI is never a complete substitute or replacement for human judgment and oversight, but rather it is a tool to boost and assist the human workforce.
In conclusion, as Australia struggles with a productivity crisis, retiring Productivity Commissioner Michael Brennan argues that artificial intelligence (AI) may hold the solution. This revolutionary potential resonates with the recent forecast made and reported by the Australian government predicting a reduction in productivity trends.
While AI’s ability to enhance human work in service areas corresponds with rising market demand, it also provokes regulatory debate and discussion concerning ethical use. Among these dynamics, is the implementation and adaptation of AI being envisioned as a strategic instrument to improve human ingenuity, but rather requires a delicate balance between innovation in AI use and development and oversight for the ethical use of AI.