AI reshapes Australian tech jobs, not replaces them

Hays has published research showing that artificial intelligence is reshaping technology roles in Australia by automating tasks rather than eliminating jobs. The strongest AI exposure is in software, data and AI roles.

Software Developers, Data Engineers and AI Engineers are likely to see the highest relative exposure to AI-led change because parts of their work can be automated. Even so, the overall effect remains limited at role level, with human oversight, system design, problem-solving and quality control still central to delivery.

By contrast, roles that rely more heavily on judgement, coordination and organisational oversight are expected to face less direct impact. Project and Change Managers fall into that category, while infrastructure-focused jobs remain important to the safe and reliable rollout of AI systems.

This creates what Hays describes as a two-speed transformation across the sector. Software-intensive work is shifting fastest, while governance, leadership and operational roles are becoming more important as companies adapt their technology estates.

Pay outlook

The research also points to continued strength in Australian technology pay despite broader changes in how work is carried out. Wage conditions are being shaped mainly by supply and demand, budget constraints and shortages of specialist skills, rather than AI-driven displacement.

Demand continues to exceed supply in advanced digital, data and cloud roles as employers invest in AI projects, cyber security and cloud modernisation. Permanent and contract hiring is also constrained by a shortage of experienced candidates, helping support both salaries and contractor rates.

Australia ranks in the upper tier of international markets for permanent technology salaries and contractor day rates across core digital roles. It remains below very high-paying markets such as Switzerland and the United States, but sits ahead of the UK, much of Europe and several Asia-Pacific peers in comparable roles, particularly in software, cloud, data and AI.

In Australia, AI Engineers typically earn AUD $145,000 to AUD $200,000 or more in permanent roles, while Cloud Engineers earn AUD $130,000 to AUD $180,000 and Data Engineers AUD $125,000 to AUD $170,000. Among contractors, day rates are AUD $900 to AUD $1,200 for AI Engineers, AUD $850 to AUD $1,100 for Cloud Engineers and AUD $800 to AUD $1,050 for Data Engineers.

Roles with broader talent availability or more standardised entry routes tend to sit at the lower end of the pay scale. The gap reflects persistent competition for workers with scarce expertise in technical areas that remain hard to fill.

Skills shift

The findings suggest the technology labour market is being reshaped less by outright job losses than by a changing mix of tasks within roles. Repetitive or routine elements are more likely to be automated, while the work left to people is becoming more focused on judgement, architecture, integration and cross-functional coordination.

That shift could affect both hiring and training decisions. Employers may need fewer people for narrowly defined task execution, but stronger demand for staff who can supervise automated systems, assess outputs and connect technical work to broader business goals.

The study also indicates that AI adoption does not remove the need to invest in workforce development. Instead, it raises the premium on technical depth combined with broader workplace skills, especially in areas where AI tools still require checking, interpretation and governance.

Adam Shapley, Managing Director of Technology and Technical - ANZ Executive at Hays, said: “In Australia, attracting the very best tech talent now requires more than competitive pay alone. Organisations need to pair strong remuneration with clear investment in skills development, meaningful AI adoption strategies and flexible workforce models. For professionals, future-proofing careers means building depth in problem-solving, system design and cross-functional collaboration - the skills that AI amplifies rather than replaces.”