Tax group links UK network to €8 billion in annual EU tax losses
The Tax Justice Network estimates that corporate profit shifting costs EU countries €59.3 billion annually, with France and Germany facing the largest losses.
RBA's Hunter sees little evidence of broad AI productivity or jobs impact
The Australian central bank official said AI investment could initially add to inflation and warned of financial stability risks if returns disappoint.
Artificial intelligence has so far shown limited evidence of substantially improving productivity or driving widespread job losses, Reserve Bank of Australia Assistant Governor Sarah Hunter said on November 9. She also warned that the technology could create increasing risks for financial stability.
Addressing a UBS conference in Sydney, Hunter said AI's inflation effects would likely change over time. Investment would initially strengthen demand and price pressures while the economy faced supply constraints.
She said expansion in data center capacity and associated industries would eventually ease bottlenecks. If AI brought wider productivity improvements, economies could increase output without additional inputs, allowing the initial inflation pressures to fade.
Australia's data center investment boom has contributed to demand pressures. It is among the reasons the RBA has increased interest rates five times this year, bringing the rate to 4.85%, an 18-year high, to combat inflation.
Hunter pointed to tentative labor market changes, including weaker job advertising and employment outcomes in occupations more exposed to AI. Areas less affected by the technology showed stronger growth, particularly among younger workers, she said.
She warned that disappointing returns on AI investment could lead to sharp asset-price repricing or disorderly market adjustments.