RBA's Bullock Warns AI Investment 'Might Be a Bubble,' Data Centres Are Adding to Inflation

Reserve Bank of Australia Governor Michele Bullock told a parliamentary committee that AI investment valuations 'might not be a bubble, but it might be' and that data-centre construction is currently adding to short-term inflation pressures. Bullock pushed back on Treasury's five-year AI-productivity forecast, saying gains could be a decade away, and pointed to a J-curve pattern where productivity often declines before it rises.