Economic News

Artificial intelligence may ultimately improve productivity, but its initial effect could be to increase demand before supply can respond. Reserve Bank of Australia Assistant Governor (Economic) Sarah Hunter told the UBS Australasia Conference in Sydney on 9 November 2026 that AI-related investment could place …

The RBA’s business liaison evidence indicates a sharp shift in the breadth of AI use between 2025 and 2026. The share of firms reporting no AI adoption fell from around one-third to almost zero. Limited use became the largest category, rising from roughly 40 …

The RBA estimates that realised data centre investment in Australia increased tenfold over the previous three years, starting from a very low base. This is part of a wider international investment wave involving data centres,Utilitynetworks, computer servers and advanced semiconductors.

Developing AI requires physical infrastructure as well as software. Data centres need computing equipment, buildings, electricity networks and skilled workers. When many businesses expand these activities simultaneously, demand for scarce inputs can increase before producers are able to respond.

The RBA’sBusinessliaison findings suggest that around three-quarters of surveyed firms had not changed headcount because of AI over the preceding year. Approximately 12 per cent reported slower hiring or not filling roles, about 8 per cent reduced headcount and roughly 6 per cent increased …

Businesses building AI systems need funds for data centres, energy infrastructure, machinery and organisational change. When investment rises across many countries, firms compete for the pool of available savings.

In Asian trading, U.S. West Texas Intermediate (WTI) crude futures advanced 0.7% to USD 91.14 per barrel as of 00:43 GMT. The increase followed Thursday’s recovery, whenBrent Crudefutures settled nearly 4% higher and WTI gained 2.7%. Those gains came immediately after a sharp Wednesday …