Key Takeaways:
The Tech Council of Australia (TCA), in collaboration with Microsoft, LinkedIn, and Workday, has projected that artificial intelligence (AI) could create up to 200,000 AI-related jobs in Australia by 2030.
This ambitious target, highlighted in the TCA’s “Meeting the AI Skills Boom” report, underscores the transformative potential of AI on the Australian job market and economy.
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Australia’s AI workforce has expanded from approximately 800 workers in 2014 to over 33,000 in 2023. To meet the 200,000 jobs target, a 500% increase is required over the next seven years.
The report anticipates that AI adoption could inject $115 billion into the Australian economy, with 70% of this value stemming from productivity gains.
Policy Support and Educational Reforms
Achieving the 200,000 AI job target will necessitate deliberate government policy support. Recommendations include developing a comprehensive AI Investment and Capability Plan for Australia, which encompasses skills-based initiatives, investment, regulation, governance, and digital infrastructure.
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The TCA suggests diversifying training pathways, including increased participation in vocational education and training (VET) and short-course programs. These initiatives are crucial for filling roles in cybersecurity, product design, and other sectors.
To address the skill shortage, the report advocates for reforms in skilled migration policies to attract global talent, especially for highly technical roles.
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Providing opportunities for mid-career professionals to retrain and upskill in AI-related fields is essential. This approach aims to leverage the existing workforce and equip them with the necessary skills to transition into AI roles.
Impact on Various Sectors
The growth in AI jobs will not be confined to the tech sector alone. Roles in human resources, sales, governance, finance, and legal compliance will also see significant growth as AI technologies are integrated across various industries.
While large and mid-sized businesses are leading AI adoption, small and medium-sized enterprises (SMEs) are lagging. The federal government’s initiatives, such as the $17 million AI adoption program for SMEs, aim to bridge this gap.
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This expansion necessitates not only an increase in the number of workers but also an adaptation to evolving job requirements across both tech and non-tech sectors.
According to the report, generative AI alone could contribute $115 billion to the Australian economy, with 70% of this benefit stemming from productivity gains.
The CSIRO’s latest AI Ecosystem Report found that two-thirds of Australian businesses had implemented some form of AI technology as of mid-2023, with a further 23% planning on doing so.
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However, SMEs, which make up 97% of Australian businesses, are significantly lagging in AI adoption. According to a report from MYOB from December 2023, only 19% of Australian SMEs were currently utilizing AI.
Industry and Expert Insights
Damian Kassabgi, CEO of TCA, emphasizes that AI should be seen as a job creator.
“Our view is – and the point of this report is – that we don’t believe AI is any different to other technologies that have come before it in relation to reskilling people and jobs changing, while at the same time the country is still in full employment,” said Kassabgi.
He highlights the need for reskilling and the importance of immigration policy in attracting high-skilled individuals to train the local workforce.
“In addition to roles that are responsible for developing, designing and maintaining AI systems, we will need people with skills in areas such as human resources, sales and governance to successfully scale these systems and businesses to harness the potential in front of us,” he said.
TCA’s report also suggests that boosting AI literacy across the workforce could drive growth in jobs to support the scaling of AI systems and products in fields such as finance, human resources, sales and operations, and governance roles across legal, policy, and risk and compliance.
Matt Tindale, Managing Director of LinkedIn Australia and New Zealand, stresses the importance of alternative entry-level pathways and mid-career retraining to grow the AI workforce.
“The existing tech workforce is already straining to meet demand, but growing the number of AI development jobs could be achieved by offering alternative entry-level pathways, opportunities for mid-career retraining and upskilling in AI, and drawing on skilled migration, particularly for highly technical roles requiring experience.” Paul Leahy, Workday’s Public Service Regional Sales Director, advocates for a national AI investment and capability plan to harness the economic and productivity benefits of AI.
He suggests that Australian employees should be supported in preparing for all the ways this transformation would impact the nature of work.
“An investment and capability plan for Australia is also essential … to capture the economic and productivity benefits of AI,” Leahy said.
Microsoft Australia’s Chief Technology Officer, Sarah Carney, explained that Australians are already using AI-powered tools to save time and create space for more important or creative work.
“There is still massive growth to come, so we need to ensure we have the AI-skilled workers available to reap the economic and social benefits that the technology will bring as it becomes more widespread,” she said.
The TCA’s report was launched on Tuesday with the support of Microsoft, LinkedIn, and Workday. The report noted additional legal, policy, and risk and compliance roles in fields such as finance, human resources, sales, and operations, and governance would be spurred by AI uptake.
The potential for AI to create up to 200,000 jobs in Australia by 2030 represents a significant opportunity for economic growth and transformation.
However, realizing this potential will require comprehensive policy support, investment in education and training, and reforms to attract global talent.
I thought it’s the other way round,
AI takes Jobs not create one.Unless we are doing it wrongly
— Muhammad Fareed Adamu (@CallMeFareed) October 2, 2023
The focus on both tech and non-tech roles indicates a broad-based impact, underscoring the importance of AI literacy across all sectors.
The proactive approach recommended by the TCA aims to ensure that Australia is well-positioned to leverage the benefits of AI while addressing the anticipated skills shortage.
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