Artificial intelligence (AI) has the potential to significantly enhance Australia’s economic performance and labour market over the next decade, according to recent modelling by a leading consulting firm. The analysis projects that AI could contribute to a gross domestic product (GDP) increase of up to 3.6 percent by 2036, alongside the creation of as many as 44,000 additional full-time jobs.

The report highlights that AI adoption may help reverse a prolonged period of stagnant productivity growth, which has persisted since 2016 and has curbed real wage gains and improvements in living standards. By driving efficiency and innovation across various sectors, AI is expected to provide “a much-needed productivity lift,” with an overall economic boost valued between AUD 95 billion and AUD 116 billion over the next ten years.

According to Cherelle Murphy, chief economist for EY Oceania, the construction industry stands to experience the most pronounced employment growth attributed to AI-driven demand. She explained that increased automation and technology integration in this sector will require expanded capital investment and infrastructure development, including data centres and other technological support systems necessary to facilitate AI applications.

The firm’s model anticipates that the additional jobs generated would equate to approximately 36,000 to 44,000 full-time equivalent positions. Furthermore, AI’s diffusion across the economy could spur between AUD 31 billion and AUD 38 billion in incremental investment, reflecting heightened activity in equipment, systems, and infrastructure procurement.

Overall, the findings suggest that AI’s integration into the Australian economy could play a pivotal role in rekindling productivity growth and supporting labour market expansion amid broader economic challenges. How quickly and widely businesses adopt AI technologies will influence the extent of these potential benefits.