AI Impact Scenarios Australia

AI IMPACT: LABOUR PRODUCTIVITY

GDP per hour worked, annual % change

Baseline:

• Productivity growth recovers through the end of the decade as AI diffusion begins to lift output per hour. • The baseline assumes gradual, broad-based adoption rather than a step change: productivity settles near 1.2% per annum, close to the long- run average though below the early-2000s peak. • Productivity is the primary transmission channel for AI; differences across scenarios are sharper here than in GDP.

2025 2026F 2027F 2028F 2029F 2030F

S1: Upside - Expansion

-0.2% 0.3% 1.8% 2.2% 2.3% 2.5%

S2: Baseline

-0.2% -0.1% 1.0% 1.2% 1.2% 1.3%

S3: Downside - AI Bust

-0.2% -0.4% 0.5% 1.6% 1.6% 1.5%

S4: Downside - Displacement

-0.2% 0.2% 1.8% 2.6% 2.9% 3.1%

Source: Cushman & Wakefield Research

Cushman & Wakefield

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