AI is reshaping Australia’s labour market at a pace that has reignited anxiety about job security and skills. Experts say the speed and visibility of AI adoption have made its impact feel more immediate than previous technological shifts.
Since the public release of ChatGPT in late 2022, AI tools have rapidly moved from novelty to everyday workplace technology. Businesses are increasingly automating routine tasks, including through agentic AI systems that can execute workflows with limited human input.
Research from the HR Institute of Australia suggests the effects are mixed. While some entry-level roles have grown in the short term, analysts warn that clerical and administrative jobs remain highly exposed as automation expands across organisations.
Economic modelling indicates that AI could boost productivity and incomes if adoption is carefully managed, but may also cause short-term job displacement. Sectors with lower automation potential, including construction, care work, and hands-on services, are expected to absorb displaced workers.
Experts and unions say outcomes will depend on skills, policy choices, and governance. Australia’s National AI Plan aims to guide the transition, while researchers urge workers to upskill and use AI as a productivity tool rather than avoiding it.
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A Guardian investigation has found that Google’s AI Overviews have displayed false and misleading health information that could put people at risk of harm. The summaries, which appear at the top of search results, are generated using AI and are presented as reliable snapshots of key information.
The investigation identified multiple cases where Google’s AI summaries provided inaccurate medical advice. Examples included incorrect guidance for pancreatic cancer patients, misleading explanations of liver blood test results, and false information about women’s cancer screening.
Health experts warned that such errors could lead people to dismiss symptoms, delay treatment, or follow harmful advice. Some charities said the summaries lacked essential context and could mislead users during moments of anxiety or crisis.
Concerns were also raised about inconsistencies, with the same health queries producing different AI-generated answers at different times. Experts said this variability undermines trust and increases the risk that misinformation will influence health decisions.
Google said most AI Overviews are accurate and helpful, and that the company continually improves quality, particularly for health-related topics. It said action is taken when summaries misinterpret content or lack appropriate context.
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Chinese President Xi Jinping said 2025 marked a year of major breakthroughs for the country’s AI and semiconductor industries. In his New Year’s address, he said that Chinese technology firms had made significant progress in AI models and domestic chip development.
China’s AI sector gained global attention with the rise of DeepSeek. The company launched advanced models focused on reasoning and efficiency, drawing comparisons with leading US systems and triggering volatility in global technology markets.
Other Chinese firms also expanded their AI capabilities. Alibaba released new frontier models and pledged large-scale investment in cloud and AI infrastructure, while Huawei announced new computing technologies and AI chips to challenge dominant suppliers.
China’s progress prompted mixed international responses. Some European governments restricted the use of Chinese AI models over data security concerns, while US companies continued engaging with Chinese-linked AI firms through acquisitions and partnerships.
Looking ahead to 2026, China is expected to prioritise AI and semiconductors in its next five-year development plan. Analysts anticipate increased research funding, expanded infrastructure, and stronger support for emerging technology industries.
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Grok, the AI chatbot built into Elon Musk’s social platform X, has been used to produce sexualised ‘edited’ images of real people, including material that appeared to involve children. In a statement cited in the report, Grok attributed some of the outputs to gaps in its safeguards that allowed images showing ‘minors in minimal clothing,’ and said changes were being made to prevent repeat incidents.
One case described a Rio de Janeiro musician, Julie Yukari, who posted a New Year’s Eve photo on X and then noticed other users tagging Grok with requests to alter her image into a bikini-style version. She said she assumed the bot would refuse, but AI-generated, near-nude edits of her image later spread on the platform.
The report suggested that the misuse was widespread and rapidly evolving. In a brief midday snapshot of public prompts, it counted more than 100 attempts in 10 minutes to get Grok to swap people’s clothing for bikinis or more revealing outfits. In dozens of cases, the tool complied wholly or partly, including instances involving people who appeared to be minors.
The episode has also drawn attention from officials outside the US. French ministers said they referred the content to prosecutors and also flagged it to the country’s media regulator, asking for an assessment under the EU’s Digital Services Act. India’s IT ministry, meanwhile, wrote to X’s local operation saying the platform had failed to stop the tool being used to generate and circulate obscene, sexually explicit material.
Specialists quoted in the report argued the backlash was predictable: ‘nudification’ tools have existed for years, but placing a powerful image editor inside a significant social network drastically lowers the effort needed to misuse it and helps harmful content spread. They said civil-society and child-safety groups had warned xAI about likely abuse, while Musk reacted online with joking posts about bikini-style AI edits, and xAI previously brushed off related coverage with the phrase ‘Legacy Media Lies.’
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South Korea recorded its highest-ever export figures in 2025, driven largely by surging global demand for semiconductors used in AI technologies. Official data shows total exports exceeded $700 billion, marking a year-on-year increase despite ongoing trade pressures and economic uncertainty.
The semiconductor sector led the growth, with exports reaching a record $173.4 billion, up more than 20 per cent from the previous year. Strong demand for high-value memory chips used in AI data centres pushed shipments higher throughout the year, including a sharp rise in December that capped ten consecutive months of growth.
South Korea’s dominance in the chip market is underpinned by global leaders such as Samsung Electronics and SK Hynix, both key suppliers to the AI industry. The government is also doubling down on the sector, with President Lee Jae Myung pledging to triple national spending on AI in a bid to position the country among the world’s top AI powers.
Other export sectors also posted strong results. Car exports climbed to a record $72 billion, while agriculture and cosmetics benefited from sustained global interest in South Korean food, beauty products, and pop culture. These gains helped offset weaker shipments to the United States and China.
Exports to those two major partners declined amid tariffs on steel, automobiles, and machinery, although Seoul secured a reduced US tariff rate late in the year. While officials hailed the export record as a sign of economic resilience, they cautioned that global trade uncertainty and the durability of semiconductor demand could pose challenges ahead.
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AI is rapidly becoming the starting point for many everyday activities, from planning and learning to shopping and decision-making. A new report by PYMNTS Intelligence suggests that AI is no longer just an added digital tool, but is increasingly replacing traditional entry points such as search engines and mobile apps.
The study shows that AI use in the United States has moved firmly into the mainstream, with more than 60 per cent of consumers using dedicated AI platforms over the past year. Younger users and frequent AI users are leading the shift, increasingly turning to AI first rather than using it to support existing online habits.
Researchers found that how people use AI matters as much as how often they use it. Heavy users rely on AI across many aspects of daily life, treating it as a general-purpose system, while lighter users remain cautious and limit AI to lower-risk tasks. Trust plays a decisive role, especially when it comes to sensitive areas such as finances and banking.
The report also points to changing patterns in online discovery. Consumers who use standalone AI platforms are more likely to abandon older methods entirely, while those encountering AI through search engines tend to blend it with familiar tools. That difference suggests that the design and context of AI services strongly influence user behaviour.
Looking ahead, the findings hint at how AI could reshape digital commerce. Many consumers say they would prefer to connect digital wallets directly to AI platforms for payments, signalling a potential shift in how intent turns into transactions. As AI becomes a common entry point to the digital world, businesses and financial institutions face growing pressure to adapt their systems to this new starting line.
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An innovative approach has gained attention as Google shared a way to help users visualize their goals for 2026 using its Gemini AI platform.
In a post from the official Gemini account, users were invited to experiment with a prompt linked to Nano Banana Pro, turning future planning into a visual and shareable exercise.
Visualize your 2026 goals with the help of Nano Banana Pro.
Open the Gemini app and use the prompt in the replies. Try different styles, like magazine cutout, notebook paper, and more. Share yours below ⬇️
The approach centres on a detailed image prompt that encourages users to create an illustrated vision board rather than a written list of resolutions.
By combining a knolling-style layout with hand-drawn aesthetics, notebook textures and playful annotations, the prompt aims to make goal-setting feel more personal and engaging.
Users are encouraged to customise the prompt by inserting their own aspirations, habits or milestones, allowing the AI to generate a tailored illustration. Cross-hatching, highlighter effects and handwritten notes give the images a deliberately imperfect, journal-like quality, despite being AI-generated.
The experiment reflects a broader trend of using generative AI for creative self-reflection rather than productivity alone. By framing goals as visual stories, Google is positioning Gemini as a tool that blends artistic expression with everyday planning.
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Face-to-face interviews and oral verification could become a routine part of third-level assessments under new recommendations aimed at addressing the improper use of AI. Institutions are being encouraged to redesign assessment methods to ensure student work is authentic.
The proposals are set out in new guidelines published by the Higher Education Authority (HEA) of Ireland, which regulates universities and other third-level institutions. The report argues that assessment systems must evolve to reflect the growing use of generative AI in education.
While encouraging institutions to embrace AI’s potential, the report stresses the need to ensure students are demonstrating genuine learning. Academics have raised concerns that AI-generated assignments are increasingly difficult to distinguish from original student work.
To address this, the report recommends redesigning assessments to prioritise student authorship and human judgement. Suggested measures include oral verification, process-based learning, and, where appropriate, a renewed reliance on written exams conducted without technology.
The authors also caution against relying on AI detection tools, arguing that integrity processes should be based on dialogue and evidence. They call for clearer policies, staff and student training, and safeguards around data use and equitable access to AI tools.
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India’s government has set out plans to democratise AI infrastructure nationwide. The strategy focuses on expanding access beyond major technology hubs.
Officials aim to increase availability of computing power, datasets and AI models. Startups, researchers and public institutions are key intended beneficiaries.
New initiatives under IndiaAI and national supercomputing programmes will boost domestic capacity. Authorities say local compute access reduces reliance on foreign providers.
Digital public platforms will support data sharing and model development. The approach seeks inclusive innovation across education, healthcare and governance across India.
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xAI is expanding its AI infrastructure in the southern United States after acquiring another data centre site near Memphis. The move significantly increases planned computing capacity and supports ambitions for large-scale AI training.
The expansion centres on the purchase of a third facility near Memphis, disclosed by Elon Musk in a post on X. The acquisition brings xAI’s total planned power capacity close to 2 gigawatts, placing the project among the most energy-intensive AI data centre developments currently underway.
xAI has bought a third building called MACROHARDRR. Will take @xAI training compute to almost 2GW.
xAI has already completed one major US facility in the area, known as Colossus, while a second site, Colossus 2, remains under construction. The newly acquired building, called MACROHARDRR, is located in Southaven and directly adjoins the Colossus 2 site, as previously reported.
By clustering facilities across neighbouring locations, xAI is creating a contiguous computing campus. The approach enables shared power, cooling, and high-speed data infrastructure for large-scale AI workloads.
The Memphis expansion underscores the rising computational demands of frontier AI models. By owning and controlling its infrastructure, xAI aims to secure long-term access to high-end compute as competition intensifies among firms investing heavily in AI data centres.
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