The Times Australia
Fisher and Paykel Appliances
The Times World News

.

Yes, AI could help us fix the productivity slump – but it can’t fix everything

  • Written by Stefan Hajkowicz, Senior Principal Scientist, Strategy and Foresight, Data61
Yes, AI could help us fix the productivity slump – but it can’t fix everything

Our nation is experiencing its lowest productivity growth in 60 years[1], according to the Committee for the Economic Development of Australia. And this downturn[2] is reflected across most advanced economies worldwide.

So it’s not surprising some see the rise of artificial intelligence (AI) as productivity’s saviour. Media articles[3] herald a new era of high productivity enabled by AI, and particularly by generative AI tools such as ChatGPT and DALL-E[4].

Similarly, the world’s top journals are filled with accounts of how AI has enabled transformative leaps in research. Machine learning has been used, for example, to predict the shape of proteins[5] from DNA information, or to control the shape[6] of super-heated plasma in a nuclear fusion reaction. One team at CSIRO designed[7] an AI-based autonomous system that can manufacture and test 12,000 solar cell designs within 24 hours.

Does that mean we can flick the switch, leave it on auto, and go to the beach? Not quite.

Read more: Don't blame workers for falling productivity – we're not the ones holding it back[8]

Not a productivity panacea

As much as the above examples provide hope, they also distract from the many AI applications that haven’t quite worked. These are the cases, often not captured in journals and media, where using AI has been costly and time-consuming and failed to generate the desired result.

In 2021, the AI community had to pause when 62 published studies that used machine learning to diagnose COVID-19 from chest scans were found to be unreliable and unusable in clinical settings[9], mostly due to problems with the input data. It was a stark reminder AI is fallible.

That’s not to say AI can’t be used to boost productivity – just that it isn’t an off-the-shelf panacea to our productivity woes. AI can’t magically fix problems related to inefficient processes, poor governance and bad culture.

If you drop advanced AI into a dumb organisation, it won’t make it smart. It will just help the organisation do dumb stuff more efficiently (in other words, quicker). This will hardly lead to a productivity gain.

Where AI applications work

One recent study[10] by the US National Bureau of Economic Research found a 14% increase in productivity among customer service agents who used an AI tool to help guide conversations. In Australia, Westpac says AI has provided a 46% productivity increase[11] for its software engineers, with no loss in quality of work.

In many ways these examples aren’t surprising. It’s obvious AI can boost productivity when used effectively; Google Maps is clearly better at getting someone from A to B than an old road atlas.

So what’s common among the situations where AI performs well?

Successful applications of AI tend to be characterised by a clear need and function for the AI system. They are well integrated within the business or organisation’s broader processes, and do not interfere with employees’ other tasks.

They also tend to have high-quality, fit-for-purpose and curated datasets used to train the algorithms, and are applied safely and in accordance with ethics principles[12].

Where AI applications fail

However, it’s difficult to achieve AI productivity benefits across an entire organisation, let alone an entire economy. Many organisations still struggle with much more basic digital transformation.

Consulting firm Deloitte[13] estimates 70% of organisations’ digital transformation efforts fail. Perhaps the real solution to the productivity dilemma lies less in using AI, and more in managing the organisational inefficiencies associated with adopting new technology.

Modern offices are chock-a-block with pointless emails, unnecessary meetings and bureaucratic processes that sap workers’ energy and motivation. Research has established[14] that productivity decreases when workers face this onslaught of busywork and distractions.

It’s unlikely AI will solve this. The currency of the modern day is attention; an AI that’s built to shield us from unnecessary busywork may end up nagging us. We may even see a future where AI tools designed to shield us from distraction are competing with AI tools designed to distract us.

University of Leeds economist Stuart Mills points out[15] that if tools such as ChatGPT merely automate bureaucratic inefficiencies, they won’t raise productivity at all.

We once asked a friend, a senior manager in a global engineering company, if he uses ChatGPT for his work. “Oh yes,” he exclaimed enthusiastically.

“I use it for generating all those reports management keeps asking me for. I know no one will ever read it, so it doesn’t need to be high quality.”

Towards long-term productivity gains

It seems very likely AI will improve productivity at a societal level in the long run, and some of these improvements may be transformative.

As of September 2022, research found[16] 5.7% of all peer-reviewed research published worldwide was on the topic of AI – up from 3.1% in 2017, and 1.2% in 2000.

It’s clear innovators everywhere are exploring how AI can supercharge their productivity – and perhaps help them make discoveries. We can expect effective solutions that genuinely solve problems will self-select and organically rise to the top.

Successful AI implementation requires understanding the context within which the technology is being applied. It requires picking up the correct tool for the task at hand, and using it in the correct way. And even before that, it requires working through issues of process, governance, culture and ethics.

Read more: AI could take your job, but it can also help you score a new one with these simple tips[17]

References

  1. ^ in 60 years (www.ceda.com.au)
  2. ^ downturn (www.brookings.edu)
  3. ^ Media articles (www.afr.com)
  4. ^ ChatGPT and DALL-E (theconversation.com)
  5. ^ the shape of proteins (www.nature.com)
  6. ^ control the shape (www.nature.com)
  7. ^ at CSIRO designed (blog.csiro.au)
  8. ^ Don't blame workers for falling productivity – we're not the ones holding it back (theconversation.com)
  9. ^ unusable in clinical settings (www.nature.com)
  10. ^ recent study (www.nber.org)
  11. ^ 46% productivity increase (ia.acs.org.au)
  12. ^ ethics principles (www.industry.gov.au)
  13. ^ Consulting firm Deloitte (www2.deloitte.com)
  14. ^ Research has established (hbr.org)
  15. ^ points out (theconversation.com)
  16. ^ research found (www.sciencedirect.com)
  17. ^ AI could take your job, but it can also help you score a new one with these simple tips (theconversation.com)

Read more https://theconversation.com/yes-ai-could-help-us-fix-the-productivity-slump-but-it-cant-fix-everything-207623

Times Magazine

A backlash against AI imagery in ads may have begun as brands promote ‘human-made’

In a wave of new ads, brands like Heineken, Polaroid and Cadbury have started hating on artifici...

Home batteries now four times the size as new installers enter the market

Australians are investing in larger home battery set ups than ever before with data showing the ...

Q&A with Freya Alexander – the young artist transforming co-working spaces into creative galleries

As the current Artist in Residence at Hub Australia, Freya Alexander is bringing colour and creativi...

This Christmas, Give the Navman Gift That Never Stops Giving – Safety

Protect your loved one’s drives with a Navman Dash Cam.  This Christmas don’t just give – prote...

Yoto now available in Kmart and The Memo, bringing screen-free storytelling to Australian families

Yoto, the kids’ audio platform inspiring creativity and imagination around the world, has launched i...

Kool Car Hire

Turn Your Four-Wheeled Showstopper into Profit (and Stardom) Have you ever found yourself stand...

The Times Features

Transforming Addiction Treatment Marketing Across Australasia & Southeast Asia

In a competitive and highly regulated space like addiction treatment, standing out online is no sm...

Aiper Scuba X1 Robotic Pool Cleaner Review: Powerful Cleaning, Smart Design

If you’re anything like me, the dream is a pool that always looks swimmable without you having to ha...

YepAI Emerges as AI Dark Horse, Launches V3 SuperAgent to Revolutionize E-commerce

November 24, 2025 – YepAI today announced the launch of its V3 SuperAgent, an enhanced AI platf...

What SMEs Should Look For When Choosing a Shared Office in 2026

Small and medium-sized enterprises remain the backbone of Australia’s economy. As of mid-2024, sma...

Anthony Albanese Probably Won’t Lead Labor Into the Next Federal Election — So Who Will?

As Australia edges closer to the next federal election, a quiet but unmistakable shift is rippli...

Top doctors tip into AI medtech capital raise a second time as Aussie start up expands globally

Medow Health AI, an Australian start up developing AI native tools for specialist doctors to  auto...

Record-breaking prize home draw offers Aussies a shot at luxury living

With home ownership slipping out of reach for many Australians, a growing number are snapping up...

Andrew Hastie is one of the few Liberal figures who clearly wants to lead his party

He’s said so himself in a podcast appearance earlier this year, stressing that he has “a desire ...

5 Ways to Protect an Aircraft

Keeping aircraft safe from environmental damage and operational hazards isn't just good practice...