November 9, 2026 — 10:31am

The AI building boom that is powering the global economy could force interest rates to remain higher , the Reserve Bank’s chief economist has warned, while revealing there are few signs the new technology will eat into the job prospects of young Australians.

Sarah Hunter, in an address to a business conference in Sydney on Monday, said AI was already having a major impact on the Australian economy with investment in data centres up 10-fold over the past three years with signs they are competing against the construction sector for trade workers.

RBA chief economist Sarah Hunter says AI will likely transform workplaces and the economy but it may mean higher interest rates in the short term. AAPIMAGE

And data centre construction alone could be the equivalent of 2 per cent of GDP for the next two years, but their demand on the energy grid could force up power prices .

The size of the AI boom has caught the Reserve and other central banks by surprise.…