Global: Australia’s Central Bank Probes AI’s Potential Impact on Economy

The Reserve Bank of Australia (RBA) is examining how artificial intelligence (AI) and other emerging technologies could shape the nation’s economy, with possible implications for inflation, productivity, and the labour market.

Speaking in Perth on Wednesday, RBA Governor Michele Bullock acknowledged the uncertainty surrounding technological disruption but underscored the importance of policymakers preparing for a range of outcomes.

“Technological change has always reshaped the labour market, and AI is no exception,” Bullock said. “While many experts anticipate a net increase in jobs, the reality is likely to be more nuanced: some roles will be redefined, others displaced, and entirely new ones created.”

To better understand these shifts, the RBA has begun expanding its own AI capabilities. The bank recently acquired its first enterprise-class graphics processing unit (GPU) to support the development of AI-driven analytical tools.

Bullock clarified, however, that AI will not be used to determine monetary policy. “To be clear, we are not using AI to formulate or set policy,” she said. “Instead, we are exploring its potential to boost efficiency and enhance the impact of our staff in areas such as research and analysis.”

Her comments highlight growing recognition among central banks globally that AI could become a structural force in shaping economic outcomes, from labour dynamics to long-term inflationary pressures.