NAB Boss Calls AI the “Fourth Industrial Revolution”
Andrew Irvine says rapid AI adoption could reshape Australian businesses, jobs and productivity, while companies that fail to adapt risk falling behind
NAB CEO Andrew Irvine has described artificial intelligence as the “fourth industrial revolution”, arguing that its impact on the way people work and businesses operate could be comparable with the steam engine, electricity and computers.
Speaking to customers in Melbourne, Irvine said AI could help businesses reduce complexity, improve productivity and scale outcomes at a much faster pace. However, he warned that the technology would not automatically deliver better results.
AI could create winners and losers
Irvine said AI should be viewed as an amplifier rather than a silver bullet. Businesses with strong cultures, processes and governance could use the technology to accelerate productivity, innovation and trust, while weaker organisations could see existing problems magnified.
He also expects business models and profit pools to shift more rapidly as companies compete to adopt AI. Organisations that are slow to adapt, he warned, risk falling behind their competitors.
The impact on employment is also expected to be significant. Irvine said some roles will disappear, others will change and new positions will emerge, drawing a comparison with the transformation of Australia's agricultural workforce over the past century.
Australia faces a broader productivity challenge
Irvine also warned that Australia risks becoming trapped in a low-productivity, low-growth environment without broader economic reform.
He pointed to a long-term slowdown in labour productivity growth, from around 2.25% a year in the decade to 2005 to about 1.1% in the decade to 2020. He said productivity growth in the US is currently around twice Australia's rate, while Singapore's is more than three times higher.
According to Irvine, Australia needs greater capital investment, risk-taking, entrepreneurship and faster adoption of technology to improve its economic performance.
What it means for investors
For investors, faster AI adoption could create opportunities across technology, financial services, infrastructure and other industries where productivity gains can translate into stronger earnings.
At the same time, companies that fail to adapt could face increasing competitive pressure as business models and profit pools shift. The broader productivity gap also highlights the importance of watching whether Australian businesses can turn AI investment into sustainable efficiency and earnings growth, rather than simply increasing technology spending.
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