Company Interview / The potential major driver of productivity

Key points:

AI offers significant productivity benefits, particularly for medium-sized businessesAI could boost the Australian economy by $45-$115 billion annually, given proper standards and regulationsWhile AI promotes workplace flexibility, human interaction and team collaboration remain essential

Andrew McKellar from the Australian Chamber of Commerce and Industry states that AI adoption offers significant productivity benefits. Medium-sized businesses are rapidly adjusting, highlighting the importance of an organised approach and firm strategy to maximise AI potential.

Andrew emphasises that the human factor is crucial in AI integration, advocating for AI literacy and management of risks. Projections from the Tech Council estimate AI could boost the Australian economy by $45-$115 billion annually. Key is establishing ethical standards and possibly regulating AI use.

Flexibility in the workplace is also enhanced by AI, supporting remote work, yet Andrew underscores the value of team collaboration and human interaction. He views AI as a tool that promotes both business efficiency and worker flexibility.

Full unedited transcript below:

0:00

Well. A new report by Australia's largest and most representative business network has highlighted the opportunity that AI adoption can bring, including productivity, benefits, efficiencies and flexibility for business and workers. Australia Chamber of Commerce and Industry CEO Andrew McKellar joins me now. Not sure if you heard the previous guest talking about have we reached peak AI? I'm guessing you think definitely not. Uh definitely not. That's, uh, that's exactly right. Juliet. Uh, I think we're a long way from that. It's still early days. Uh, I think the upside for business and for workers is very, uh, significant. We think this is a major potential driver of productivity. Much needed, uh, productivity, uh, over the years ahead. Um, surprisingly, if anything, medium sized businesses are making the most rapid adjustment. But there's plenty of scope, I think, across the board. Um, and we really need to have, I think, an organized approach to this, uh, a firm strategy about

1:00

how we're going to maximize that potential in the future. And what does the Acci say in terms of how businesses can use the technology that we have currently most effectively? We're not really trying to push workers out necessarily. We're just trying to streamline people's jobs and make things more efficient.

1:19

Well, we think it's a massive productivity tool, so it can help make people more efficient in their roles and I think help people to work more effectively. So there are things that can speed up the process. Uh, you know, and particularly I think in, you know, knowledge based industries where you can, you know, do some of that preliminary work using an AI tool. Uh, but then, of course, what we would say is that the human factor remains, uh, fundamental having human judgment, uh, ensuring that there's review of the outputs and quality control. That's a key part of the process. And we certainly think that, uh, you know, that human element is absolutely essential, um, How we use this tool for good. Um, that's the major thing that has got to be set up in the process that we're looking at moving forward. So what sort of, um, boost to the economy is this adoption expected to

2:18

bring us in in the coming years?

2:22

Well, I think there's a lot of, uh, preliminary, uh, you know, views about that. Uh, we've seen the Tech council, uh, projections. Uh, they say it could be anywhere between, I think, uh, $45 billion a year and up to about $115 billion a year for the Australian economy, uh, as a boost to, uh, productivity. Um, let's work with that as a as a range. Um, but, you know, we want to create, uh, you know, the knowledge based jobs in the future. We do see, AI has been a valuable assistance in that, in that process. But we really need to have an approach where we're encouraging AI literacy as early as possible. Uh, we need to manage the risks. And I think the risks are, well documented. We're seeing those, uh, on a day by day basis. Uh, you know, we've got to have the right standards in place. Uh, we saw last week, I think, a helpful, uh, step from the government, uh, saying that, you know, they were working to put in place some early standards. Uh,

3:22

let's adopt those on a voluntary basis. In the first instance, let's consider, you know, whether we need formal regulation and what sort of

3:30

certainly. I think, uh, it's worth it. We've got an ethical, um, you know, high quality approach, uh, in terms of the standards that we're setting, uh, as we, as we seek to facilitate, um, you know, this great tool moving forward. We talk a lot as well about flexibility, which is what a lot of workers and businesses also want. Tell us how things have changed and evolve, particularly given where nearly five years since the Covid pandemic forced many people that never had to be able to work from home

4:04

Well, look, that that's still very much, uh, there. Uh, I think, you know, flexibility has been a, a consistent theme over those, over those recent years. Uh, we do see that, uh, that I plays a role in, in continuing to support workplace flexibility. Uh, but we shouldn't lose sight of the benefits of having people working together in, in organized teams and in many cases, still having people coming together in a central location. Uh, you know, as a, as a core part of that work process. So we see the value in that. Uh, we see eye as an enabling tool that will help promote, uh, flexibility and support, uh, that flexibility that many workers are looking for. Uh, but by the same token, you know, we see that it has great business value as well. So, uh, I think flexibility is very important. Um, it can help in that, in that process. But don't let's lose sight of the fact that people working together in teams and that human contact

5:04

that's also, uh fundamental. And I think we've got to keep sight of that importance as well.