Australia bets on AI to more than double its economy over four decades

Australia just laid out a 40-year economic blueprint, and it reads less like a government report and more like a pitch deck for the AI age. Treasurer Jim Chalmers released the 2026 Intergenerational Report on September 20, projecting that the nation’s economy will more than double in size by the mid-2060s, with artificial intelligence serving as the primary engine of that growth. The GDP math behind the AI bet According to the report’s economic models, AI could contribute between A$95 billion and A$116 billion to Australia’s GDP by 2036 alone. That translates to a 2.6% to 3.2% uplift in national output within the next decade. The employment picture looks similarly optimistic. The report estimates AI integration will create between 36,000 and 44,000 new jobs by 2036, a figure that counters the prevailing narrative that automation necessarily means fewer workers. Government spending commitments already exceed A$460 million for AI-related initiatives, ranging from infrastructure development to skills training programs. Australia’s data center investment pipeline is projected to reach approximately A$150 billion by 2030. Demographics are shifting too Girls born in 2065-66 are expected ...