AI Could Add A$116B to Australia’s Economy; Create 44,000 Jobs by 2036
Synopsis
EY modelling estimates AI could lift Australia's real GDP by up to 3.2% over the next decade, with productivity gains, investment and worker reskilling driving the economic impact.
Australia could see A$95 billion to A$116 billion boost to its economy from broader adoption of artificial intelligence by 2036, according to EY-Parthenon.
The report, The economic upside of Artificial Intelligence for Australia, suggests that if AI can be leveraged effectively, the economic impact will be a 2.6% to 3.2% overall increase in real GDP, and the creation of 36,000 to 44,000 new full-time equivalent jobs.
AI Investment Could Lift Productivity
AI productivity estimates range between 2.0% and 2.4% up to 2036, the basis of the AI $116 billion Australia estimate. According to EY-Parthenon, these benefits can drive an extra A$31 billion to A$38 billion in investments, representing a 3.2% to 3.9% growth over the baseline.
The impact on the economy will be driven by businesses using the productivity boost from AI to boost their investment, capacity and output, EY Oceania chief economist Cherelle Murphy said. The modelling assumes three scenarios, of which the central scenario assumes a 2.2% increase in multifactor productivity by 2036.
The first impact on investments is already evident for businesses. Australian business investment in New South Wales and Victoria rose by 10.5% over the year to the March quarter 2026, driven by investment in data centres.
EY said investment in computer software grew by 8.3% on an annual basis in the March quarter compared to 13.7% in the United States.
Construction Set for Largest Job Gain
Employment impacts will be different across industries, according to the AI $116 billion Australia economy modelling.
Demand for data centres, equipment, infrastructure, and other capital expenditure associated with AI adoption will drive the biggest growth in full-time employment, according to Construction. Other industries, such as wholesale trade, retail trade, transport and warehousing, are also expected to increase their employment.
In contrast, in agriculture and mining, employment is expected to decrease due to the use of automation and improved efficiency of work.
The weak productivity context for the AI $116bn Australia economy projection. Australian multifactor productivity (MFP) decreased by 0.5 per cent in 2024-25, and labour productivity remained flat in the December quarter and increased 1.0 per cent in the year to December 2025, the Productivity Commission reported.
EY projects that Australia's labour productivity was averaging just 0.3% per year over the last decade, far lower than what was recorded in the decade before. The AI $116 billion Australia economy estimates are based on modelling scenarios and do not represent a guaranteed economic growth pathway.
Source: InformationAGE
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
