Productivity Commission urges against over-regulating AI, flags $116bn growth potential
In what is the body's third out of five reports ahead of the Albanese government's economic reform roundtable later this month, the Productivity Commission found AI could 'likely' boost productivity by 2.3 per cent and labour productivity growth of 4.6 per cent, or $116bn, over the next decade.
While the PC warned there was 'considerable uncertainty' in the figures, it listed examples like fraud detection and warnings by banks, robotic sorting in agriculture and teaching tools at unis and schools.
The report, released on Tuesday, urged the government to use existing regulations as the starting point, however 'burdensome regulation' and a lack of certainty was disincentivising investment appetite in the sector.
The regulation of AI-based medical devices through the TGA was used as an example in the report, noting that if a device already fulfils the guardrails set by the regulatory body, the government shouldn't raise the regulatory burden which would force companies to demonstrate further compliance.
Commissioner Stephen King said regulation should be used to limit the risks, but not stifle growth potential.
Risks were identified as bias and discrimination, mistakes, emission of information and threats from harmful actors like the spread of fake content to manipulate public opinion.
'Like any new technology, AI comes with risks. But we can address many of these risks by refining and amending the rules and frameworks we already have in place,' Commissioner King said.
'Adding economy-wide regulations that specifically target AI could see Australia fall behind the curve, limiting a potentially enormous growth opportunity.'
On the impact of AI on the workforce, the report also acknowledged that while technology changes will 'inevitably' involve 'painful transitions' and job losses, it could also lead to a greater demand 'for other tasks performed by humans'.
'To the extent significant job displacement does occur the Australian government may need to consider support for retraining of workers, as has occurred in the past when there have been changes to the way jobs are undertaken,' it said.
'The social safety net of unemployment assistance would also be available.'
The role of AI in boosting productivity will be heavily discussed at the upcoming economic reform roundtable from August 19-21, with one session set to be dedicated to 'AI and innovation'.
The session will also be attended by Strategic Examination of Research and Development chair Robyn Denholm and CSIRO chair Ming Long, Treasurer Jim Chalmers confirmed on Tuesday.
Mr Chalmers said he was 'optimistic' about the ability for AI to 'completely transform our economy' and lift living standards, and said the government was 'realistic about the risks'.
'We're confident we can deploy artificial intelligence in a way consistent with our values if we treat it as an enabler not an enemy, by listening to and empowering workers to adapt and augment their work,' he said.
'AI will be a key concern of the economic reform roundtable I'm convening this month because it has major implications for economic resilience, productivity, and budget sustainability.'
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