Australia’s 2026 Intergenerational Report projects that the economy will more than double in size by the mid-2060s, with artificial intelligence identified as the main growth engine. The report estimates AI could add between A$95 billion and A$116 billion to GDP by 2036, equivalent to a 2.6% to 3.2% increase in national output, while creating 36,000 to 44,000 jobs. Government commitments to AI initiatives already exceed A$460 million, and the data center investment pipeline is projected to reach about A$150 billion by 2030. The outlook also combines longer life expectancy with fewer births, creating pressure as a smaller working-age population supports more retirees. Australia’s National AI Plan, initiated in 2025-2026, is built around infrastructure, workforce skills and risk management. The report also projects a shift toward cleaner energy and government debt falling to half its level under current forecasts. For investors, near-term execution on infrastructure, skills programs and regulation matters more than the 40-year GDP projection, while the employment estimates depend on how quickly displaced workers can retrain.