Impact of generative AI on skills in the workplace
20.02.2024 - 02:25
Research by Mandala Partners in partnership with the Future Skills Organisation examines the impact of generative AI on finance, technology and business occupations, and the ramifications this will have on the training system in Australia. Industry estimates of the impact of generative AI in Australia range from between $45 billion to $115 billion by 2030. With Australia projected to have a 370,000 digital worker shortfall by 2026, according to the Growing Australia’s Digital Workforce report, these findings will be crucial in considering how to tailor the training system to meet demand.
The occupations with the highest required skill level are more likely to change as generative AI systems are implemented.
The primary impact on the training system will be at the university level as occupations that generally require university qualifications typically have greater exposure to generative AI. Within the Vocational Education and Training (VET) system, higher level qualifications are also more likely to face disruption.
“To determine the impact on Australia’s training system, and in particular VET, we mapped estimates of the impact on the human abilities that form the fundamental building blocks of tasks, skills and occupations. This allowed us to estimate the impacts at the occupation, qualification and unit of competency level.”
– Director Tom McMahon, recounting the methodology of the research.
In the Financial Services training package, the greatest exposure to generative AI is in qualifications preparing people for roles in accounting and clerking for financial services firms. In the Business Services training package, the greatest exposure is seen in administration and call centre roles. In the ICT training package, the greatest exposure is seen in software development and programming roles.
Generative AI will affect the tasks that we perform in different ways: some automated, many augmented, and others adapted.
Tasks that AI systems can manage entirely on their own will be automated, increasing efficiency and eliminating routine effort.
Tasks will be augmented where there is a synergy where AI enhances human abilities, allowing for collaborative work that harnesses the strengths of both AI and human judgment. Evidence of this impact is already evident in tasks associated with writing, translation, research and software development.
Specific tasks adapt to incorporate AI-driven insights or actions, requiring humans to interpret, validate, or combine these outputs. Evidence of this can be seen in tasks such as classification and editing AI generated text.
With Australia projected to have a 370,000 digital worker shortfall by 2026, according to the Growing Australia’s Digital Workforce report, these findings will be crucial in considering how to tailor the training system to meet demand.
Read the full report on the Future Skills Organisation website.
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