AI's Double-Edged Sword: Treasury Flags Rate Risks, Regulator Pushes Faster Adoption, and Parliament Drowns in Hallucinations

Treasury analysis reveals AI-related data centre investment could push up interest rates as companies compete for capital and resources. The $150 billion data centre boom, representing 5% of GDP by decade's end, may force the RBA into tightening monetary policy just as governments ramp up infrastructure spending. This isn't just about job displacement—it's about the entire monetary policy framework being stress-tested by a technology race.

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The Australian Prudential...