AI boom forecast as Australia's biggest bonanza yet

AI adoption is surging in Australia, driving a massive demand for infrastructure and generating significant economic benefits, according to Oxford Economics. The nation is on the brink of a data centre boom, with Oxford Economics head of economics Harry Murphy Cruise predicting that AI adoption in Australia will jump to around 50 per cent over the next decade and reach 80 per cent by 2025.

Other countries in the region, including Japan, China, and India, are also following suit, albeit at a slower pace due to more manual labor-based economies. Oxford Economics analyzed occupations in Australia and found that graphic design, web design, illustration, data entry, and telemarketing are most susceptible to AI-driven automation.

However, occupations like concreters, surgeons, and electricians are less vulnerable, as AI cannot currently perform tasks like heart surgery. By 2060, AI could replace about 15 per cent of current tasks and occupations. Despite this, Oxford Economics expects AI to boost global productivity by 2.5 per cent by 2035 and 4.5 per cent by 2060, which could lead to employment gains as well.

Australia's data centre investment is expected to reach $60 billion by 2030, creating jobs in various sectors such as telecommunications, maintenance, professional services, and engineering. This infrastructure expansion is projected to inject $78 billion into the economy by 2030 and generate around 80,000 to 100,000 jobs annually.