The Guardian — Technology · September 22, 2026 · On the brief until October 6, 2026

AI could be a bubble and is not yet making Australia more productive, Michele Bullock says

EconomicsFinance

THE AI ANGLE

Adding to inflation through data centre investment without lifting productivity

Reserve Bank of Australia Governor Michele Bullock warned that artificial intelligence could be an asset bubble without evidence of economic efficiency gains. She stated that rapid adoption and data centre spending currently add to inflation rather than output growth. Economists and finance analysts must now weigh long-term productivity targets against near-term price pressures and market risks.

Summary written by AI Business Lens with an AI model from the article at theguardian.com. It is not the article, and the publisher has not reviewed it. For publishers.

THE TEACHING ANGLE

Central bankers and students can debate whether large capital spending on data centres stokes inflation before businesses capture measurable productivity gains.

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AI could be a bubble and is not yet making Australia more productive, Michele Bullock says

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