Replacement or expansion: Can AI be good for jobs?

While the exact future of Australia’s job market and the full impact of AI is yet to be understood, a landmark Australian report has painted a reassuring picture – at least for now.

AI has not yet caused mass employment distress, according to new data from the first AI and Employment in Australia report, with some experts suggesting AI is simply reshaping the labour market.

The report, commissioned by the Department of Employment and Workplace Relations and written by the Office of the Chief Economist, examined how occupations and sectors have been impacted since generative AI tools entered the labour market in late 2022.

With obvious brakes on growth for jobs more exposed to AI, namely, admin work, the overall effect has not been one of significant upheaval, with the report noting: “Overall labour market conditions remain strong by historical standards, youth outcomes have mostly held up, and occupational reshuffling has not accelerated.”

In fact, some sectors have seen positive changes.

Software development increased by 25 per cent since November 2022, roles for young workers that were a specific area of concern actually grew more than that of workers above 25, and human resource clerks, which saw an initial phase of market volatility at the introduction of generative AI, have since stabilised above November 2022 levels.

The report also drew attention to sectors that remain unaffected by AI, and thereby remain a viable employment option, including aged care and disability, trades, and transportation.

However, many are finding positivity in the idea that AI will open new pathways for more engaging work, sparking the creation of new positions and skills.

According to Toby Walsh, scientia professor of artificial intelligence at UNSW’s Department of Computer Science, “AI can do the 4Ds: the dirty, the dull, the difficult and the dangerous”.

He identified the two types of jobs that technology is likely to create: human-facing roles, due to an increased value on human skills, and technology-enabled jobs, such as single-person start-ups that don’t need humans to operate marketing.

Minister for Employment and Workplace Relations Amanda Rishworth said: “AI is changing how we work, but it also has real potential to lift productivity, build skills and create new opportunities.”

While Walsh agreed with this in theory, he noted that AI can also take jobs away.

And while occupational shuffling may not sound detrimental on paper, the adjustment will certainly be harder for some more than others.

For Walsh, the report tells a story of transition, one that urges patience, nuance, and early preparation.

He said: “People don’t need to be too worried – the impact of AI so far has been modest. But there also hasn’t been no impact. So we need to start making plans for this transition.”

On insulating oneself from any further impacts, Walsh said: “Focus on embracing the AI tools – in the first instance, it’s not AI that takes your job but someone who knows how to use AI. More generally, I encourage people to develop their people-facing skills – their emotional and social intelligence, their creativity, their critical thinking skills.”

“These are the things machines do badly and will be increasingly valued in the workplace.”

The report urged readers not to consider any results as absolute or definitive, adding that any findings should “be read as justification for ongoing monitoring rather than clear evidence that AI has reduced employment”.

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