Bank of Australia Assistant Governor Sarah Hunter said the surge in AI related investments will further boost demand in the economy. In a speech on Monday discussing the potential impact of AI, Hunter said that AI is “one of the most significant technological developments of our time” and has begun to reshape the economy. “In the short term, in the current context of the economy's supply capacity, the positive impact on aggregate demand will put some upward pressure on inflation.” Hunter said. “There are reports that data center construction is leading to a further increase in demand for technical jobs in the construction industry that are already tight.” Hunter said during the Q&A session after the speech that rising construction costs are a channel for AI demand to influence the consumer price index. According to data from Deloitte Access Economics, as of September, Australia's construction projects reached a record scale of 1.4 trillion Australian dollars, and the final scale may double the previous mining investment boom. The Bank of Australia and the government both pointed out that corporate investment performance was unexpectedly strong. Hunter said that the risks faced by AI projects are “broadly balanced”, and regulatory policies may change or restrict the progress of some projects.

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