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Ai anxiety the australian job market a 2026 report on risks regulation and new skills

How Will AI Impact the Australian Job Market

Somnath Chatterjee
By Somnath Chatterjee - News

Published: Last Updated: 

Readtime: 5 min

Artificial intelligence is rapidly reshaping industries worldwide, prompting the Federal Government to consult on how emerging technologies will affect Australian jobs and what new rules may be required to manage the transition. With public debate intensifying, industry groups, unions and policymakers are now weighing in on what “safe and responsible AI” should look like for the national workforce.

On one side, you have industry groups like the Tech Council of Australia (TCA) arguing that AI could deliver significant productivity gains, while the Australian Council of Trade Unions (ACTU)is calling for stronger worker protections to prevent technology-driven job insecurity. The government’s task is to balance innovation with safeguards as AI adoption accelerates nationwide.

Sizing up the impact which jobs are most exposed
Sizing Up the Impact: Which Jobs are Most Exposed | Image: Photo Smoothies

Is AI a Job Killer or a Job Filler?

The Tech Council of Australia (TCA) frames AI as a significant economic opportunity in its ‘AI-Enhanced Economy’ report. It estimates AI could add between $45 billion and $115 billion to Australia’s economy each year by 2030.

On the employment side of the equation, things are more complex. A recent report from the International Labour Organisation (ILO) suggests generative AI is more likely to automate tasks than replace entire roles. “The impact of AI is likely to be to augment jobs, not destroy them,” the ILO states, with clerical and administrative roles expected to experience the most significant shift in task distribution.

Sectors including accounting, business analysis, financial services, marketing and sales are all highly exposed. Meanwhile, jobs in construction, farming, trades, hospitality and food services remain relatively resilient.

Balancing AI Regulation with Innovation

The debate around “safe and responsible AI” has widened as businesses and workers respond to the new technology.

The ACTU is pushing for binding rules requiring transparency in AI-driven decisions and mandatory consultation with workers when AI systems are introduced. In contrast, the Business Council of Australia (BCA) argues that “heavy-handed” regulation would limit innovation and competitiveness, arguing instead for voluntary principles in low-risk contexts to avoid “unnecessary red tape”.

With both sides digging in, the government now faces the challenge of designing rules that protect workers without slowing Australia’s AI momentum.

The path forward a focus on new skills and adaptation
The Path Forward: A Focus on New Skills and Adaptation | Image: PeopleImages

Australia’s Approach to AI

Despite fears about AI taking our jobs, the government argues the real shift won’t be mass replacement but job augmentation. Speaking at the Australian Chamber of Commerce and Industry’s Business Leaders’ Summit, Senator Tim Ayres said he’s “focused on maximising the opportunities that are in front of Australia today,” insisting that “AI will add to, enhance and augment Australian jobs and living standards.” Used well, he said, it can even “strengthen Australia’s economic autonomy and resilience.”

As he’s travelled to factories, clinics, offices and farms, Ayres said what’s become clear is “the scale of the opportunity for Australia, for Australian firms and for Australian workers.” AI is already creating jobs in data centres, diagnostics, clean tech and advanced manufacturing, while improving precision and reducing repetitive tasks across existing roles. It’s why the Albanese Government is “calibrating Australia’s approach carefully, in a way that maximises AI’s value and mitigates its risks.”

In his view, AI is less a job killer and more a job multiplier.

To support that shift, the government is rolling out one million free “Introduction to AI” courses, expanding digital skills training through TAFE, and backing industry–university programs to build a truly AI-ready workforce. The aim, Ayres said, is to ensure that “all Australians share the benefits of AI,” not just early adopters or cashed-up sectors. In practice, that means giving workers tools to evolve with their jobs rather than step aside from them.

So perhaps the real question isn’t whether AI will take our jobs, but how ready we are to take advantage of the ones it creates.

Australian AI Policies FAQ

What is the Australian Government Doing to Regulate AI?

The Australian Government, through the Department of Industry, Science and Resources, is developing new regulations for the “Safe and Responsible” use of AI. This includes consulting with industry, unions, and the public on new rules to manage AI’s risks, ensure transparency, and protect workers’ rights in AI-driven decisions.

Which Australian Jobs are Most at Risk from AI?

According to reports from organisations like the ILO and various economic analyses, jobs that involve high levels of repetitive, data-driven, and administrative tasks are most at risk. This includes roles in accounting, financial services, data entry, and some areas of marketing and law. Sectors requiring in-person, manual, or high-level creative work (like construction, trades, and hospitality) are considered more resilient.

What New Jobs Will AI Create?

While AI may automate some tasks, industry groups like the Tech Council of Australia project it will also create new, high-value roles. These are concentrated in areas such as AI management, data science, cybersecurity, AI ethics and governance, and specialised roles for workers who can utilise AI tools to enhance their existing skills (e.g., in marketing, design, and analytics).

Somnath Chatterjee

Contributor

Somnath Chatterjee

Somnath Chatterjee is an experienced car journalist and current automotive editor of ABP News Live. His supercar reviews, interviews and industry features have appeared in global publications such as Upscale Living, Robb Report and Yahoo Lifestyle Asia. Somnath specialises in ...

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