RBA governor Michele Bullock ‘optimistic’ on AI boom but impact on jobs remains to be seen

It’s too early to understand the impact of artificial intelligence on jobs but the size of the transformation will be huge, Reserve Bank boss Michele Bullock will say at an event today.

Speaking at the University of Western Australia in Perth, the RBA governor said some commentators viewed “AI as the next general-purpose technology, much like electricity”.

“When such transformative technologies emerge, they often generate waves of innovation as they become integrated across industries and transform the wider economy,” she said.

The RBA boss said she was “optimistic” but cautioned it remained to be see how an AI boom would play out, especially for jobs.

The Productivity Commission earlier this year forecast that AI and big data could generate a $116 billion boost for the country across the next decade.

But that report sparked anger from creative industries after the commission suggested copyright exemptions to train the gigantic computer models; and experts warn that society might not have the right rules in place for the rapidly-developing technology.

“Technological change has always reshaped the labour market, and AI is no exception,” Ms Bullock will say.

The central bank’s own engagement with industry indicates Aussie businesses think it is “too early to fully understand” the long term impact on jobs.

Almost 80 per cent of companies surveyed by the RBA plan to invest in AI or machine learning in the next three years.

That’s more than double the number of the past five years.

“As AI continues to reshape industries and economies, it is not just the tools and processes that are evolving, it is the very nature of work,” Ms Bullock will say.

“While many experts anticipate a net increase in jobs, it is likely to be more nuanced: some roles will be redefined, others might be displaced, and entirely new ones will be created.”

The RBA is also putting their money where their mouth is.

The Reserve is upgrading data science capacity and will pump data through artificial intelligence — with 200 years of records that cover 4.6km of shelf space — to get a better read on the economy.

Its data bank is equivalent to about 30,000 average modern laptops.