Why AI Won't Steal Every Job, Says Top Economist

Many Australians worry that artificial intelligence (AI) is going to take over jobs, leaving many people out of work. It's a common fear, especially with all the headlines about new AI breakthroughs. However, a well-known economist, Steve Hanke, suggests we might be getting a bit carried away with these worries.

Hanke, who understands how economies work, points out that using AI isn't free. Despite what some might think, developing, installing, and maintaining AI systems costs money – often a lot of it. Companies need to invest in the technology, the people to run it, and the ongoing updates and support. So, for a business to switch from human workers to AI, the AI option really has to be significantly cheaper and more efficient.

He argues that businesses always weigh up costs and benefits. If replacing human workers with AI doesn't make clear financial sense, they simply won't do it on a large scale. It’s a basic economic principle. This means that while AI will certainly change many roles and tasks, it’s unlikely that businesses will just fire everyone and replace them with machines if it's going to hit their bottom line hard.

This perspective offers a bit of a reality check. It doesn't mean AI won't impact the job market, but it does suggest a more gradual and economically driven shift rather than a sudden, widespread takeover. For small business owners in Brisbane, this could mean that while AI tools might help with specific tasks and boost efficiency, the idea of completely automating entire workforces might be further off — and more expensive — than previously thought.