Australian's shouldn't be worried about AI according to Gov research

Jobs and Skills Australia (JSA) has released a landmark report concluding that generative artificial intelligence (AI) is more likely to augment the way people work than to replace jobs through automation. Launched on 14 August 2025, the Generative AI Capacity Study is the first national, whole-of-labour-market analysis of AI's potential and impacts on the workforce. This initial "headline" release will be followed by a more detailed analysis on 28 August and a technical report on 30 September 2025.

The study comes at a "critical early point" in Australia's transition to an economy both "enabled and augmented" by AI. JSA undertook extensive consultations with over 150 stakeholders between March and May 2025 to inform the report, capturing a diverse range of perspectives on how generative AI could affect jobs and skills.

Key findings

• Gen AI is more likely to augment jobs than replace them.

• AI adoption is in its early stages and varies across industries, with many workers independently experimenting with Gen AI tools in their work.

• The impact of AI will differ across occupations, industries, regions and demographic groups.

• Ensuring the workforce has the right skills – both digital and human – will be essential to harness AI's benefits.

Professor Barney Glover, JSA's Commissioner, said the new technology brings both significant opportunities and challenges. "There is a tremendous opportunity for Australia and our workforce to boost our productivity and create new ways of working," Professor Glover said.

At the same time, Glover cautioned that Australians must be mindful of AI's disruptive potential. "As a nation, we need to be conscious that generative artificial intelligence has the potential to augment the work we do, as well as to automate some tasks," he said. "This has the potential to displace people in some jobs, particularly administrative and clerical roles."

The Commissioner highlighted the critical role of training and education in helping workers adapt to technological change. "As with other technological change, the skills system will play an important role in equipping people to be able to transition into new roles," Glover noted. He added that the impact of AI will "differ across geographical location, industry and occupation" and will evolve over time as new technologies further transform work.

So far, entry-level positions have not been significantly affected by AI, according to the study, and Glover stressed the importance of preserving these pathways for new workers. "While we haven't yet seen an impact on entry-level roles in Australia, it will be important that the labour market continues to provide these valuable formative roles, which provide foundational experiences in their careers," he explained.

Adaptability among workers will be "critical" for Australia to realise AI's benefits, the report suggests, as the introduction of generative tools is expected to lead to new jobs emerging and many existing roles changing. "Ensuring that we have the right digital and AI skills for a modern labour market will be essential, and our research shows that the complementary human skills are increasingly in demand," Glover said.

The Generative AI Capacity Study puts forward ten recommendations for Australia's labour market and skills system to navigate the transition to an AI-enabled future, aiming to leverage the opportunities of technological change while managing its challenges. "Australia is at the beginning of an exciting evolution, but we must ensure we bring our people with us, through upskilling, training and capacity building," Professor Glover said in launching the report.