Australian workers are facing major upheavals as artificial intelligence (AI) becomes a cheaper alternative to employing humans.
The full impact of AI has not yet been reflected in job ads or official employment statistics, but both employers and employees have warned that technology is already reshaping the country's labour market.
Recent Data Science Alumni required Tien Hung Nguyen 30 Application and an internship to win his first full-time job.
“I feel privileged to secure this position and I'm going to give you everything I have,” he says.
Most of his friends are still looking for work – and he says artificial intelligence is a big reason.
“For example, with AI coming in, a team might have needed three or four juniors and seniors. Now it's one junior and AI,” explains Nguyen.
“There are few opportunities for young graduates.“
Recent alumnus Tien Hung Nguyen feels lucky to have won jobs when many of his peers struggle to find jobs related to their degree. (ABC News: John Gunn))
Layoffs are increasingly faster in countries with more AI-driven countries, such as the United States.
Amazon is the newest, large employer warning of looming unemployment. There have also been reports that Microsoft is being formed to clean more staff where AI can complete tasks.
Also, with the recent unemployment rate among college graduates is close to 6%, there are concerns for young American workers.
In Australia, the unemployment rate is stable at 4.1%. However, youth unemployment rates are usually higher than the overall rate – rose slightly to 9.2%.
Economist Leonora Lisse says youth unemployment is a key indicator.
“Youth tend to be the group that experiences the largest volatility in the labor market,” she warns.
“Therefore, it is the young people who are likely to lose jobs or struggle to build foothold in the job market when the economy takes a recession.“
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Nguyen currently works for an AI startup, with much of the low-level admin work already handing over to the machines.
His employer, Julian Fade, says the shift is on the rise.
“Our technology is progressing, and AI implementation is progressing at a rapid pace, meaning our personnel are not growing anymore,” he says.
“Many of the lower-level tasks our team didn't enjoy was now able to do AI 24 hours a day, seven days a week.
“There's no sick day. That's a bit of a dark joke.”
Beyond small, high-tech startups, some of the nation's largest employers are also prepared for a lean future.
Telstra CEO Vicky Brady has paid in advance at several public events on how advances in AI will trigger job openings.
“We know that work will look very different in 2030, and so will us,” Brady told a recent investor briefing.
CBA boss Matt Comin made a similar comment when he appeared at the Australian Financial Review AI Summit in Sydney this month.
“It's hard to predict,” Comin said.
“But I think it makes sense to say that in some areas the workforce is smaller.”
Recruiters say AI will replace entry-level jobs
Dario Amodei, CEO of the US-based AI company Humanity, warns that up to 50% of entry-level white-collar jobs could disappear within five years.
Aaron Mattlejean of recruiting agency Aura agrees that junior positions will go first.
Recruiter Aaron Mattlejean expects professional service clients to make staffing decisions based on AI within the next two years. (ABC News: Daniel Irvine))
“To train juniors — that would usually be a learning exercise for them — now it can be done much cheaper and more effectively by AI in seconds,” he explains.
Matrljan says all his professional services clients are talking about AI.
“Once people learn it, the next step is: How does that affect staffing?“
Matrljan hopes to cut jobs as AI becomes more common within the next two years, and believes that slowing down the economy will only speed up the adoption of technology.
“The next intakes for graduates will be really interesting and companies will need to solve where they are getting those efficiencies, where they are getting cost savings, the alumni they need to run the number of trainers that AI can now do faster.”
Companies that do not adopt AI risks are left behind, especially as technology promises major productivity gains.
The optimism of AI is that this technology will not replace human workers, but rather allow them to take on high-level tasks instead.
“Productivity is shifting time from lowest-value activities and lowest-value tasks that can be done on automation or AI or computers, and rearranging time for the most valuable uses, the most intentional and meaningful use,” claims Dr. Risse..
“We don't want to outsource what makes us human to computers and robots. We want to stick to it and raise it.“
The more productive you are, the higher your wages
Dr. Risse said that AI could benefit workers if the transition is managed fairly.
Economist Leonora Lis says there is a carrier that is less susceptible to AI disruptions. (supply))
“If you're working productive, you may get high wages,” she explains.
“What we must ensure afterwards is that increased labor productivity flows to higher wages. Otherwise, the benefits of its high productivity will be absorbed into the profits.“
Some jobs are necessarily replaced by everyday roles that are easy to automate, as they follow AI, particularly predictable and repetitive patterns.
The reality is that, as Dr. Lisse says, some workers will need to find new jobs in new industries.
“The care and community sector is growing, especially as a result of an aging nation. We need people. We need people from these sectors,” she argues.
“But for some people in the fields of banking and finance, it can feel like a huge leap.”
As AI progresses, the question is not whether it will dramatically change the workforce, but how quickly and whether Australian job markets will be able to adapt on time.
Fade believes there will always be a white-collar job for the right candidate.
However, landing positions can make competition even more intense.
“If you can put before me before me, a truly skilled critical thinker, problem solver, I will take as many people as I can hire.“
His advice to students is dull.
Employers say they want critical thinking skills rather than technical capabilities that are easily replicated by AI. (interpretation))
“For those who are thinking about what to study, they absolutely need to consider whether their future roles are at risk from AI,” Fade said.
“I think this will be very, very destructive.”
Additionally, deep reduced companies have risks. They could ultimately lose a pipeline of workers moving into middle and senior roles.
“Companies need to work in places where they are gaining these efficiencies, where they are gaining cost savings, the number of graduates, the number of trainers that AI needs to do tasks that AI can do now faster,” says Matrljan.
“It's connected for the next two or four years because there aren't many juniors going through the ranks. Have you lost a lot of knowledge at that level?”
