AI could be ‘Get Out of Jail Free card’ for Australia’s lagging productivity problem, business leaders argue

Top business leaders have urged Labor to adopt and embrace AI as a “Get Out of Jail Free card” for the country’s productivity woes.

Corporate executives — including from Westpac, NAB, and ANZ — rallied for Australia to lead in AI transformation globally during testimonies to a parliamentary inquiry into the technology this week.

Former fiance minister Simon Birmingham, in his role as Australian Banking Association boss, was among those to call for the nation to capitalise, telling parliamentarians independent modelling had predicted it could contribute $116 billion dollars in additional GDP by 2036.

“Australia’s banks are not approaching artificial intelligence is a distant prospect. It is already at work in our industry every hour of every day,” he told the inquiry committee on Friday.

“It’s checking payments in real time, answering customer questions at 2am, helping staff recognise a customer in financial distress during a live call, and stopping money reaching criminals before it leaves an account.

“The opportunity for Australia is significant. Independent modelling puts AI’s potential contribution at up to 116 billion dollars in additional GDP by 2036, with the net gain in jobs possible.”

It was echoed by Business Council of Australia boss Bran Black — representing more than 120 of Australia’s largest businesses — who said: “AI is not some distant technology. In fact, most Australians are already using it every day”.

“The question is whether Australia is able to make the most of the extraordinary opportunity and manage the risks as they arise,” he said.

He shared examples of sectors using AI, listing hospitals’ ability to offer better care, mining giant BHP scanning larger rocks to prevent injury, and CommBank detecting fraud and scams.

Mr Black said Australia should be investing in AI to assist its growing “productivity problem” but must walk a tightrope to address privacy, scam and job loss concern — which he said “deserve straight answers”.

“We should prioritise skills development so all Australians can participate in the opportunity,” he said.

“We must prioritise one set of national rules for data centres, the power that AI needs, and for our systems that matter most, being defence, national security, and critical infrastructure. Australian control is key.

“If we can get those settings right, businesses will invest here. Australians will see the benefits in their daily lives, and more of the jobs, ideas and value will stay here in Australia.”

Council of Small Business Organisations Australia boss William Harris likened the technology to Monopoly’s prized ‘Get Out of Jail Free’ card if used properly to unlock Australia from its productivity woes.

“At a time that we found ourselves in the worst productivity growth decade in 60 years, AI provides a potential Get Out of Jail Free card if we get the settings right,” he said.

Mr Harris and representatives from the Australian Chamber of Commerce and Industry both called for more support for small businesses to adopt AI, saying there was a broad eagerness but use so far was shallow because of the need for training and resources.

The predicted multi-billion dollar economic gain Mr Birmingham talked up had been echoed by other inquiry witnesses through the past week, including Andrew Forrest’s Minderoo which claimed AI training alone could deliver $7 billion if Australia could get right the balance on copyright.

But while businesses were rosy about AI’s potential economic benefits, unions had earlier sounded the alarm over the impact on workers.

Several gave examples of where workers were tracked, including through wearable AI devices, or have their tasks decided for them.

When committee member NSW Labor Senator Tony Sheldon put those union fears to business leaders during the inquiry, he likened AI’s surveillance of workers to a “digital ankle monitor”.

“Wearables to monitor people? That sounds more like a workplace that’s got a digital ankle monitor. It’s more like an AI prison. Oversighted by AI governors.”

Mr Black and other witnesses, however, insisted that AI is more likely to help people in their work rather than replace roles.

Mr Birmingham added that the public discussion of AI should “lift hope” and not be driven only by fear as it could discourage people from learning about AI, engaging with it, and building the skills Australia needs to benefit from it.

“I do think that it’s really important to stress in the midst of this debate is we all have to play a role in trying to to lift some community hopes in relation to AI,” he said.

“If, as a country, our entire outlook is driven by the fear and concerns — that’s really going to be harmful.”

The inquiry will continue next week.