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2
Slow capability · Fast diffusion

Incremental efficiency

Modest tools widely adopted; steady but undramatic gains

Illustration of Incremental efficiency

AI capability improves slowly, but what exists gets widely adopted. Copilots, chatbots, and automation tools become standard across industries globally. The gains are real but undramatic — a few percent productivity lift, fewer administrative hours, faster routine work.

This is the ‘spreadsheet moment’ scenario: a genuinely useful technology that changes workflows without rewriting entire industries. Competitor economies integrate AI steadily. The floor rises everywhere.

AI becomes standard infrastructure, like cloud computing

Productivity gains are real but modest (~2–4% at firm level)

Large firms adopt faster; SME gap widens without intervention

No dramatic labour displacement; gradual task reallocation

Competitive pressure is steady, not acute

WA faces steady competitive pressure. Firms and governments in comparable jurisdictions are getting more efficient. If WA doesn't match the baseline adoption, it falls behind not through dramatic failure but through gradual erosion of competitiveness. The risk is being the last to adopt the obvious.

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Adoption no regret
Strong
Institutional capability no regret
Strong
Talent no regret
Strong
Energy & compute hosting conditional
Conditional
Startups & innovation conditional
Conditional