Leaders in artificial intelligence warn Australia is falling behind and national productivity gains rest on embracing the technology.

The sense of urgency for Australia to jump on the global AI bandwagon has not been felt for a "century or so", with Microsoft's John Galligan comparing the technology's spread to electricity and the steam engine.

"This is something that's going to change everything," he told a Victorian Chamber of Commerce and Industry event in Melbourne on Wednesday.

The recent deployment of Microsoft's Copilot generative AI in Brisbane Catholic schools has saved some teachers up to nine hours of work a week, Mr Galligan said.

Teachers were using the tool for class planning, responding to parents' questions and general marking.

"It's a day a week," the tech giant's gen

See Full Page