Artificial Intelligence

Did the Trump administration use AI to devise its tariffs?

The Albanese government dropped a policy bomb on Sunday: a complete ban on foreign investors and temporary residents purchasing established homes for two years. I would write something about it, but I already did when Dutton proposed the same policy a couple of weeks ago.

Has DeepSeek ignited an AI arms race that will reshape productivity and investment worldwide?

An Australia-wide long weekend kicks off tomorrow, and between the Perth Rugby Sevens tournament and Australia Day festivities I’m not going to have all that much time for the usual reading and writing. So the next time you’ll hear from me will probably be in the form of a Hot Take on the all-important December quarter inflation figures (Wednesday).

Most readers of Aussienomics are probably still busy soaking up the Australian summer rather than looking for interesting tidbits in their inboxes. But for those of you still checking your emails, here are a few of my thoughts on some of the essays, papers and news I’ve read over the break.

The mid-year budget update was depressingly bad; AI won't leave a third of workers unemployable; a Future Made in Australia will politicise the economy; Argentina's remarkable year and what it means for Australia; another look at hydrogen; and the per capita recession may already be over.

Apple has joined the AI race by adding ChatGPT to every iPhone, bringing privacy and security concerns to the forefront; how should governments regulate this rapidly evolving technology without stifling innovation?

Our states should close their foreign offices; the Zuck discusses his AI strategy; why we can't build any more; economists debate AI and productivity; and will China invade Taiwan?

Today's AI, with its many flaws, is more of a force multiplier than revolutionary tech. Australia should avoid rushing to compete with global leaders in the name of AI sovereignty and instead focus on building guardrails, without being so prescriptive as to kill innovative attempts at AI diffusion.

If Australia's policymakers don't address the rising energy demands of AI, we risk falling behind other advanced nations. Despite its many critics, nuclear is a potential solution alongside renewables, and should not be ruled out so cavalierly.