The government has been warned not to take a heavy-handed approach to regulating artificial intelligence, with the Productivity Commission saying the technology could add $116 billion to the economy over the next decade.

In a new report, the Commission says AI could have a bigger impact on productivity than the advent of the internet or the mobile phone.

But it cautions against adopting a broad law limiting AI, putting it on a collision course with union voices at the government's upcoming economic round table.

• Guest: Dr Stephen King, Commissioner at the Productivity Commission and a Professor of Practice at Monash University.
• Producer: Oscar Coleman