A five-year job confidence low and less hope for the future: Is AI to blame?

The meaning of success is shifting as the cost of living, a dynamic labour market, and perceived digital threats increase uncertainty and anxiety.

Recent findings from The Lab’s The Australia Project have revealed that the nation is feeling the pressure on all sides, a sentiment that has been strongly connected to the rise of artificial intelligence.

Now in its 12th iteration, the survey of 2,000 Australians revealed significant changes over the last 12 months, with confidence in the future falling from 34 per cent in 2025 to 23 per cent in 2026. Pessimism is also growing, with 79 per cent of Australians now feeling society is stacked against ordinary people and 65 per cent believe they won’t be able to get ahead.

According to The Lab director Paul Labagnara, “this year’s results show some of the sharpest changes we have ever seen in terms of confidence, caused by a heady combination of financial pressures, political commentary and uncertainty caused by the rise of AI in many parts of people’s lives”.

“Taken together, they show a nation which is looking for change and a rebalancing of power and control to help overcome feelings of helplessness against massive forces which are impacting their lives,” Labagnara said.

In connection, the digital evolution is fuelling employment uncertainty, with more than 60 per cent of respondents believing AI will make it harder to get a job or start in their preferred career, and 80 per cent agreeing they don’t know who to trust online.

The report identified that Australians are questioning what AI means for their livelihoods and careers rather than rejecting it outright, which is nevertheless adding to overall uncertainty and increased efforts to insulate oneself from an unpredictable future.

This pressure is translating into different priorities and even the meaning of success in what may seem less connected to AI on the surface, but nevertheless aligns with an overall technological evolution that trickles down to labour demand and financial circumstances.

Australians are not only tightening their wallets, but 69 per cent have changed their goals for the future, and traditional values of wealth and status have been replaced with an emphasis on balance, belonging and stability – a clear generational divider.

According to the survey, Gen X primarily perceive the Australian dream through comfort and affordability and home ownership. Gen Z, while still prioritising these values, now rank family and community over home ownership in what is less a reflection of values themselves and more a response to Australia’s economic and labour environments.

These findings, along with a reduction in eating out, holidaying, making major purchases and subscription cancellations – and a reduction in saving – reveal that Australians are becoming more intentional with where they invest time and money, and reinforce that the economy is an accelerant of this shift.

In this way, the changing priorities could arguably be a rebellion against seemingly surface-level yet unattainable achievements.

Labagnara explained: “The common thread running through this year’s research is that Australians are becoming more discerning. They’re making more deliberate decisions about how they spend, who they trust and what they value.”

“The lesson for anyone looking to win the trust of ordinary Australians is simple – recognise the pressures many people are feeling and find ways to help create positive solutions which empower them and build lasting relationships.”

Whether the changes in financial priorities, feelings of security, and employment viability are primarily due to AI or part of a larger cost-of-living puzzle, their interconnected relationship will continue to be the source of debate.

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