“AI Will Fix That”: The Mirage of Productivity

We are at the beginning of the age of Artificial Intelligence. And yet, when I asked AI, “Can AI be trusted?”—its reply was telling:

“AI, for all its capabilities, still relies on human guidance, critical thinking, and informed oversight. It’s more of a compass than a captain.”

A fair metaphor which begs the bigger question: what does AI mean for productivity—especially for small business people?

The Prime Minister recently called on employers and small businesses to “resume your rightful place as the primary source of growth in our economy.” It’s a call to arms—but does he understand who he’s talking to?

Small business people are everywhere. They’re not boardroom dwellers in a penthouse board room in a major city. 

They’re not bureaucrats who spend, perhaps save, but never earn. 

They’re not unions obsessed with relevance and militancy.They are the builders, the risk-takers, the engines of local communities. And they’re the ones most affected by:

- Bad regulations 

- Poor communication 

- A chronic misunderstanding of what differentiates small, medium, and large enterprises

Productivity starts with simplicity. The formula hasn’t changed: remove complexity. 

The problem? Certain business associations and unions actively protect complexity. It serves their models—based on income, influence, self-preservation.

Australia is burdened with one of the most complex workplace relations systems in the world. If the Prime Minister genuinely wants business to lead, then start with simplification. Fix workplace relations.

But he won’t. His advisers will likely pivot to technology—“AI will fix that.”

Here we go again. Yes, AI is powerful. It can diagnose, predict, compose, and unearth red tape. But it also comes with serious caveats:

- It’s only trustworthy when transparently managed 

- It demands real accountability 

- It must align with human values—not replace them

So, let’s be honest: when we strip away the slick phrasing, even AI admits it shouldn’t be blindly trusted. It’s developing fast. It has immense potential. But it’s not a panacea.

Big tech will tell you otherwise. They’re banking on it—literally.

Enough about AI. The Real Path to Productivity? What will actually boost productivity for small business?

- Clear, fit-for-purpose communication 

- Smarter, user-led processes 

- Regulation that’s easy to understand 

- Government and corporate systems that meet real-world needs

Let software developers, grassroots innovators, and small business people lead. Give them the tools—and the room—to innovate. Let real-world thinkers run rings around the ideologues who sit in glass towers and talk in circles.