Australia weighs risks and rewards of rapid AI adoption

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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