AI Human Capital Investment Index
23.07.2023 - 10:40
Mandala's new AI Human Capital Investment Index measures how companies are investing in hiring workers with AI-related skills.
Measuring investment in AI skills
Mandala used data from job ads to construct an AI Human Capital Investment Index, a measure of how intensely companies invest in hiring workers with AI-related skills.
There was a 5x investment growth in human capital investment between 2017 and 2021
Companies have been steadily increasing their investment in AI skills over time. Between 2017 and late-2021, the index in Australia grew by 5 times. This investment fell in 2022 during the global technology downturn as many companies froze hiring but it’s started to accelerate again as we’ve seen new investments in generative AI and other applications.
Human capital Investment was dominated by universities and has flowed to services
As AI technology matured and its applications proliferated, investment in AI skills is flowing across the economy. Current investment is dominated by professional and financial services companies with some contributions from mining, logistics, manufacturing, and healthcare. There is opportunity to identify sectors that would benefit from the productivity gains provided by AI technology.
Human capital investment is geographically concentrated in NSW and Victoria
Organisations in NSW and Victoria contributed 76% of Australia’s total investment in AI skills. Encouraging investment across the country will ensure that productivity gains and benefits from AI technology are more evenly spread.
Read our latest posts
Growing Australia's iron advantage
Our latest report, commissioned by Boundless, presents new research that reveals Australia's ability to competitively supply 20% of global green iron by 2050. This would reduce global steel emissions by 1.7% - surpassing Australia's current total emissions of 1.2% - while adding $103 billion to the economy and supporting 27,500 direct jobs. However, realising this opportunity requires addressing significant challenges including a significant build out of renewable energy generation, storage and transmission and the commercialisation of green iron technologies. Urgent policy support is needed to address these challenges and unlock private investment.
28 Nov, 2024
The Australian Health and Medical Research Workforce Audit
The Australian Health and Medical Research Workforce Audit provides a detailed snapshot of Australia’s health and medical research workforce, highlighting its characteristics, career pathways, and challenges. Drawing on desktop research, surveys, and profile analysis, the report reveals that approximately 39,690 researchers work in the field, with 65% in traditional university and institute roles and 33% in private and clinical settings. Although women make up 52% of the workforce, only 25% hold senior positions, indicating a gender gap in leadership. Over 40% of researchers are from overseas, adding diversity and global connections, while Victoria employs the most researchers, with a notable underrepresentation in regional and remote areas. Despite a shared passion for research and societal impact, many researchers face challenges with funding and job security, and in the past five years, over 60% have moved into non-research roles where they continue to contribute as leaders and managers in related fields. This audit provides valuable insights into the strengths and development opportunities within Australia’s health and medical research workforce.
12 Nov, 2024
Beyond the visa cap: Why restricting international students won't solve Australia's housing crisis
Our latest report in partnership with Student Accommodation Council examines the impact that the Government’s proposed international student visa caps will have on Australia’s metropolitan rental markets. The report demonstrates that while visa caps would significantly harm Australia's economy, they would do little to address housing affordability. International students comprise only 6% of Australia's rental market, with 39% living outside the general rental market entirely. The proposed caps would reduce metropolitan rents by just $5 per week while costing the Australian economy $4.1 billion in GDP and 22,000 jobs. Universities would face $600 million in annual revenue losses. As Australia's fourth-largest export, international education contributes $63 billion to the economy and supports 335,000 jobs. Rather than capping student numbers, the report recommends addressing housing affordability through targeted policies, including reducing tax barriers to foreign investment in student housing and developing purpose-built student accommodation (PBSA) specific legislation. These measures would help maintain Australia's competitive edge while addressing housing pressures through increased PBSA supply.
11 Nov, 2024
Australia’s opportunity in the new AI economy
Our latest research collaboration with Microsoft has just been released, highlighting Australia's most promising opportunities in the new global AI economy. This study identifies key areas where Australia can leverage its strengths in AI applications, AI data centres, and data to drive significant economic growth, create new jobs, and enhance our digital resilience.
7 Nov, 2024