The outgoing productivity czar has pointed to artificial intelligence as a potentially "significant" driver of a productivity revolution as the Western world struggles to climb out of a malaise in workplace efficiency.
Michael Brennan said AI is one of the most high-potential technologies to improve economic output in coming decades, while emphasizing that it is still in an early phase of development.
"If we were to see a revival, a significant revival of productivity growth in the developed world, I would imagine that AI is probably a key part of that," said Brennan, who will be succeeded by Chris Barrett after his five-year term ends in September.
A government report examining trends predicted that Australia's productivity growth will be 1.2 percent annually in the long-term, down from 1.5 percent in the same report just two years ago. The drop will cut estimated real GDP over the next 40 years by almost 10 percent.
The report says Australia isn't alone - developed economies across the world have seen a drop in productivity, as easy gains from technology advancements begin to dry up.
However, Brennan said he is optimistic about the potential for gains in the future. He added: "We don't really know yet just how far AI and machine learning could go, but a moment's reflection tells you that there is very significant scope for that to assist and augment human labor across a whole range of particularly service industries."
Market demand for AI programs and chips has caused the profile of companies associated with the new technology to soar in recent months, including chipmaker Nvidia, which forecast massive profits for the three-month period ending in October.
At the same time, governments across the world are weighing the benefits and dangers of AI.
The government this month extended a consultation into potential AI regulations after a significant amount of interest from stakeholders. The regulations are targeted to be completed by year-end.
Brennan said he is confident the government will approach the regulations in a "thoughtful way," adding AI is "not completely" without risk.
"But of course, the offsetting principle is we want to be open to the scope for innovation here," he said.
"It's never a complete replacement or substitute for human judgment and oversight, but it could play a role, right?"
Australia and other developed economies have seen a drop in workplace efficiency. REUTERS
