Australia's central bank said AI has not lifted productivity. Its spending adds to demand.
ABC News reported on 22 September that Michele Bullock, governor of the Reserve Bank of Australia, told an event in Sydney that AI investment was already adding to demand while there were "very few signs" of it increasing what…
ABC News reported on 22 September that Michele Bullock, governor of the Reserve Bank of Australia, told an event in Sydney that AI investment was already adding to demand while there were "very few signs" of it increasing what the economy can produce.
She called that an "awkward sequencing event", in which "the AI boom is adding to that demand ahead of any potential supply impacts".
On the risk of a bubble she said: "it might not be a bubble, but it might be. And if it unwinds in a disorderly manner, then that could have implications for the financial system and also for the real economies."
The Guardian reported that Bullock cited Bank of Korea research. Employees who adopted AI tended to produce the same output while working 1.5 hours less each week.
If AI saved each of your people 1.5 hours a week without raising output, would your CFO count it as a return?
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