Global baseline shift
AI is standard across industries; the competitive floor rises globally
What defines this world
AI is capable and widely adopted. It runs complex projects, produces high-quality analytical work, and is embedded in firms and governments across the globe. This is not concentrated advantage — it is a new global baseline.
The competitive floor rises everywhere. Industries that don't use AI are not just slower; they are structurally uncompetitive. This is the scenario where AI delivers the broad-based productivity gains that economists forecast.
Key dynamics
AI is standard operating procedure, not a differentiator
Firm-level productivity gains of ~4% become economy-wide
Labour markets restructure around human-AI collaboration
Competitive advantage shifts to implementation quality
Public services face citizen expectations set by private sector AI
What WA faces
WA faces real competitive pressure. Every comparable jurisdiction is running AI-augmented government, AI-enabled industry, AI-supported healthcare and education. Matching the baseline is necessary; exceeding it is how WA captures disproportionate value. The premium shifts from having AI to using it well.
Policy implications
Full analysis →Position in framework