The good and bad of the artificial intelligence boom will be examined as a Senate inquiry probes Australia’s chronic productivity problem.
AI presents one of the most significant opportunities to lift productivity across Australia’s economy, according to a submission by FinTech Australia, which will front the committee hearing on Monday.
But the extent of the productivity boost that AI could deliver would depend on regulatory settings, the industry peak body argued.
Broad, economy-wide obligations for AI might delay investment, uptake and the realisation of productivity benefits, FinTech Australia chief executive Rehan D’Almeida said in the submission.
Mr D’Almeida’s appearance before the inquiry comes days after Prime Minister Anthony Albanese announced the government would introduce mandatory standards for AI use and data centre development.
The plans were viewed as an acknowledgement of community concerns about the potential downsides the AI revolution could bring: to jobs, to security and to society as a whole.
In its submission, the Australian Banking Association warned organised criminals were using AI to rapidly generate false documents, leading to an increase in mortgage fraud.
“Crime syndicates may be using AI at scale to fraudulently obtain loans to launder and recycle overseas funds into Australian property and business assets,” head of economic policy Craig Evans wrote.
Mr Evans and association chief executive Simon Birmingham will also appear before the inquiry on Monday, along with representatives from each of the country’s big four banks, the Australian Tax Office and the Productivity Commission.
The banking sector has been at the forefront of AI’s impact on the jobs market.
In May, Bendigo and Adelaide Bank announced cuts to its workforce after signing two major technology deals.
The Financial Sector Union estimated the number of roles lost could be in the hundreds.
In 2025, the Commonwealth Bank cut 45 customer service jobs after introducing an AI-powered chatbot but backflipped and reinstated the roles.
While there were potential benefits if AI was introduced responsibly, the bad use of AI would impose major disruptions and risks on society, the Australian Council of Trade Unions wrote in its submission.
“There are estimates that millions of jobs could be displaced by the introduction of AI,” it said.
A report released by the Employment Department earlier in July found no evidence AI was causing large-scale job losses in Australia.
But jobs more exposed to AI, such as clerical and administrative roles, were growing more slowly than those less exposed.
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