Australia Looks to AI for Economic Growth

Analysis of the economy

By Michelle Grattan

The Conversation

Topic: AI

Friday, 10 July 2026, at 5:05 am

Anthony Albanese will talk about the government's AI plans.

New figures show people are worried about money and the economy.

The OECD found that Australia's minimum wage has gone down.

Deloitte Access Economics says the economy will not grow much in the next two years. The economy is expected to grow less than 2.0 per cent per year for the next two years. This is a slow growth rate.

The International Monetary Fund says Australia's GDP will grow 1.9 per cent this year and 1.7 per cent next year. The economy is growing, but not very fast. The growth is slow.

Australia's economy is growing slowly, but at least it's growing. However, this growth is helped by the increasing population. When we look at the growth per person, it's actually gone down in two of the last five quarters and was flat in another quarter.

AI is not yet causing big problems in Australia's job market.

People are not very confident about the economy, and some politicians are talking about the problems people are facing.

The government says things are not all bad. Business investment is strong, and unemployment is low. The government also says that talking about how bad the economy is can actually make it worse.

However, the government knows that it needs to find ways to make the economy grow faster. One way to do this is to improve productivity.

Productivity is important

We need to do more to improve productivity. Despite all the talk, we need faster progress to fix our poor performance.

Some changes are being made to help, like making it easier to build things and reducing rules for projects.

But people are looking to AI for bigger and faster gains. The government is paying a lot of attention to AI. At the government level, AI is getting a lot of attention from ministers and the cabinet.

AI can help the economy grow faster. New data centres are being built, which can help businesses invest. Australia is a good place for international investment in these centres because it has a lot of land and water, and its legal and political systems are stable. AI can also bring new jobs and opportunities.

But AI also has some potential downsides. Data centres use a lot of energy and water, and they can be noisy and hot. Some people are not happy about them being built in their areas.

This new technology is exciting for some people, but it also worries others.

In the government, there are different views on how to handle AI. Some people want to move faster, while others are more cautious.

Different people have different views on AI

The former industry minister wanted new laws for AI, but the government is taking a more gradual approach. Each minister is responsible for AI in their own area.

Assistant Minister Andrew Charlton is very interested in AI. He has a strong background in economics and knows a lot about AI. As cabinet secretary, he has a lot of influence.

Charlton thinks AI is important, but he also wants to make sure it's used responsibly. He believes in having strict rules to ensure AI is used safely and for the benefit of society.

Industry Minister Tim Ayres is also interested in AI. He wants Australia to take advantage of AI, but he also wants to make sure workers are protected. He comes from the union movement and thinks unions should have a say in how AI is used.

Employment Minister Amanda Rishworth is worried about how AI will affect workers. She released a report on AI and employment. The report says that AI could change the job market, but it's not clear what will happen. The report found that there is no evidence of big changes in the job market yet, but some jobs may be more at risk than others.

The report says that AI has not yet caused big problems in the job market. The job market is still strong, and young people are doing okay. However, some jobs may be more at risk than others due to automation.

The report found that jobs that are more likely to be automated are not growing as fast as other jobs. Between November 2022 and February 2026, employment in these jobs grew by 5.6 per cent, compared to 9.5 per cent in jobs that are less likely to be automated.

The report says that there is a small link between AI and slower job growth. For jobs that are more likely to be automated, employment was about 2 per cent lower than it would have been without AI.

The government released its National AI Plan in December. The plan was seen as a light-touch approach, with not many details. However, it did include some rules for data centres and an AI Safety Institute.

Tech battles inform AI approach

AI policy needs to be updated regularly. The government needs to address new issues as they come up.

There are concerns in the music industry and other creative areas. Arts Minister Tony Burke is working to help these industries. The government is aware of the need to protect copyright and is ready to act if necessary.

The government wants to make sure Australia has control over its AI policy. It doesn't want the tech industry to dictate what happens, but it also doesn't want to fall behind. The government is trying to find a balance between the benefits and risks of AI.

Next week, Anthony Albanese will give a speech on AI. The speech will give a broad overview of the government's plans for AI. It will show how much the prime minister is involved in this area.

Michelle Grattan is a professor and journalist who wrote this article.

Friday, 10 July 2026, at 5:05 am

Friday, 10 July 2026, at 10:18 am

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