Treasury warns Australia may miss AI-driven growth without deeper business integration
The Treasury says Australia’s AI use is shallow, with under 10% of firms reporting significant adoption, risking lost economic gains.
Treasury officials told Treasurer Jim Chalmers that Australia’s current AI adoption is widespread but superficial, with less than 10% of firms reporting significant use. Although about two-thirds of companies have some AI presence, the depth needed to boost productivity is lacking, especially in sectors like health, education, construction and tourism. The department cautions that without organisational changes—new processes, business models and skill development—the country could forfeit the technology’s economic upside.
Small-business executives, including Enterprize Tasmania chief Brian Collins, describe a confidence gap and overwhelming product choices as obstacles, while Judo Bank adviser Warren Hogan urges greater government support. Treasury still expects AI to help sustain a 1.2% long-run growth rate, projecting a possible 1.5-2% productivity lift, and highlights a concurrent data-centre construction boom worth about $150 billion by 2030. Deputy Prime Minister Richard Marles and Assistant Minister Andrew Charlton are travelling to the United States for talks with major AI firms to safeguard national interests and encourage local innovation.
Why it matters
Australia could lose a major boost to its economy if businesses fail to embed AI beyond superficial use.
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