Young Australians are using AI, but do they understand it?

According to new research from Anyway, KPMG Australia, and Microsoft, almost half of young Australians (45 per cent) have a strong understanding of AI. Despite this, only one in 10 believes it will actually help them land a job.

The report, Young Australians and the AI Workforce Transition, which is a survey of 1,029 Australians aged 15–24, disclosed that the rate of AI understanding increased from 27 per cent in 2023. Although, despite AI skills improving, it is not translating into employability confidence.

While AI expertise is being rapidly sought after by employers and being implemented in workplaces, it was found that only one in three young people feels highly confident in job interviews when explaining how they use AI.

In terms of education, 41 per cent of those being surveyed stated they already use AI for learning and assignments, with that number dropping to 15 per cent for work or career development.

However, 27 per cent of the people surveyed reported that their schools and universities are discouraging AI usage, thus minimising opportunities to enhance practical and career-relevant experience.

The co-founder and co-CEO of Anyway, Will Stubley, highlighted that applying AI skills will be crucial to the future careers of young Australians.

“It’s great to see so many young Aussies trying out AI, but what we’re seeing is they’re not always supported to actually apply that in a career context,” Stubley said.

“If we can bridge that and give young people the tools and guidance to turn those skills into something practical, that’s where the real opportunity is.”

Despite its increasing use among the workforce, almost half of young Australians (49 per cent) said AI is making them concerned about their future.

Sixty-three per cent of people believe that AI will eliminate jobs, and only 35 per cent expect it to create them in equal measure.

Stubley warned that “fear will continue to own the narrative around AI, unless industry and government work together to create clear career pathways and guidance for students during the school-work transition”.

Engagement divides in AI are also surfacing across the country, with rates of rare or non-use at 47 per cent in rural areas and 52 per cent among those from low socioeconomic backgrounds. This is in comparison to 35 per cent in higher socioeconomic groups.

Another key engagement divider when it comes to AI is chosen career paths, outweighing differences in gender, socioeconomic status, or geography.

Young people pursuing technology and institutional careers report the highest regular use (both 45 per cent).

Not far behind were people-centred roles (39 per cent) and practical careers (33 per cent), while creative and cultural pathways remain the lowest at 17 per cent.

According to Tim Allen, the AI national skills director at Microsoft in Australia and New Zealand, AI skills building should become a priority for Australia.

“It’s important that everyone, regardless of where they live or the path they choose, has the opportunity to build these skills,” Allen said.

“We’re all on this journey together, and everyone should have access to the AI advantage. AI capability will be valuable across the entire workforce and is highly transferable across roles and careers.”

Further, KPMG Australia’s chief digital officer, John Munnelly, said that AI skills are increasingly vital for early-career roles.

“Demand for AI capability is accelerating across Australia, with employers rapidly integrating AI training into graduate programs,” Munnelly said.

“The real challenge now is ensuring young Australians recognise AI not just as a disruption, but as a generational opportunity to step confidently into the future workforce.”

The emergence of AI among educational institutions is only going to increase in the future, with a large portion of Australians already using it for assignments and learning.

While understanding of AI across Australia is quite high, it must be noted that only very few believe that this knowledge will actually assist in any potential employment opportunities.

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