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Australia

AI not a ‘straightforward’ fix for ailing productivity

20 August 2025 03:30 | News

Australia was warned against the withdrawal of artificial intelligence while looking at technology to help solve productivity problems.

Artificial intelligence is expected to take the center on the second day of the government’s economic reform round table meeting as well as arrangement and competition.

Despite recognizing the risks, Treasurer Jim Chalmers said that AI had previously been an economic “game -changer” to increase Australia’s patient productivity and remove living standards.

However, Jathan Sadowski, a Human -Centered Information Process Instructor of Monash University, warned that the story is not that simple.

“AI changes the nature of the business, but it does not make the job more efficient or more productive,” he said.

“People need to fill the gaps with AI, or AI needs to clean the chaos after AI does not correctly.

“Many organizations are not ready to do the hard work necessary to implement AI.”

AI will be a focus of the second day of the government’s economic reform round table meeting. (Mick Tsikas/AAP Photos)

In order to use artificial intelligence well, businesses will have to change their applications, thus completing the capabilities of technology requiring important infrastructure work, capital investment and human craftsmanship.

Technology works in the best way when it is for purpose by using certain, high quality data for the special subject area of an organization.

This means having a large number of smaller -scale technologies corresponding to AI’s judge.

“Towards universal models – this is a real push – something like a chatgpt – the only model that manages them is a solution to every problem,” he said.

“This means that you can sell technology to every market and from the government’s point of view, the only solution you should do is to apply this only solution.

“There is something very seductive for this because it tells a good story… But it does not produce good technology.”

Research on the effect of artificial intelligence on productivity has mixed results.

The CSIRO study of 300 employees found that one out of every three people did not report the productivity benefits and that there were majority waiting for improvements to be better than delivered.

The analysis published in the US National Economic Research Office showed uncertain results at the organizational level, and it can be difficult to solve the effect of AI from other factors.


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