CBA chief Matt Comyn says Australia must retain economic value of AI

SYDNEY, Oct 14 : Commonwealth Bank of Australia CEO Matt Comyn said on Wednesday Australia must ensure more of the economic benefits created by AI remain in the country while regulation should work to build trust in the new technology.  

Comyn said CBA, Australia's largest lender, is rolling out AI technologies across its banking portfolio, especially in business banking.

The bank has also launched an AI chat within its banking app to selected customers that can access personal and business banking details.

Comyn said AI could be the "most significant technology shift we have seen" but warned an official framework was needed as the technology rolls out at a fast pace around the world.

"Realising the AI opportunity will require regulation to keep pace," he said at the bank's annual investor meeting in Sydney.

"Effective regulation should help build trust in AI while ensuring global technology companies operate in accordance with Australian laws and standards, and that more of the economic value created by AI is captured in Australia."

Australia has started to toughen its approach to AI regulation after initially giving an unconditional welcome to AI companies. 

The Labor government has responded to community pushback against AI and data centre development by saying it would take a tougher approach.

The government has said it is preparing a wide-ranging set of AI laws to take effect from early 2027, which would include limits to water and energy use by data centres, as well as copyright protections and cybersecurity measures.

Comyn said Australia's economy remained resilient, although more frequent and volatile international shocks were likely.

"It will take time for higher interest rates to bring inflation back into the target range," Comyn said.

The remarks come a day after minutes of the Reserve Bank of Australia's September meeting showed the board remained concerned about persistent inflation pressures and considered further rate hikes could be needed if price growth proved more stubborn than expected. 

The central bank last month ordered a fourth interest rate rise for the year which took the official cash rate to 4.6 per cent, the highest level in 15 years.

Comyn said Australia had little control over external shocks and would need to boost productivity through measures including building more homes, delivering reliable low-cost energy at scale and adopting technologies such as AI across the economy.

In his address to shareholders, CBA Chair Paul O'Malley said cost-of-living pressures and higher interest rates continued to affect households unevenly, while businesses were managing elevated input costs and supply uncertainty.

Succession planning remained a focus for the lender, O'Malley said, a year after telling shareholders Comyn would remain in the CEO role for at least another three years.