TL;DR:
- Labor markets in NSW and Victoria are at the forefront of AI adoption in Australia, accounting for 76% of new AI jobs.
- Private sector investment in AI is growing, led by banks, consultancies, and accounting firms.
- Disparities exist among states and industries, with NSW and Victoria outperforming while Queensland and WA lag behind.
- The professional services industry has the highest number of AI jobs, followed by financial services, education, and IT/media.
- AI job advertisements have seen significant growth over the past decade, indicating a rising demand for AI skills.
- The Australian government is engaging in consultations with industry experts to formulate AI regulations and maximize benefits while mitigating risks.
- The need to expand the pool of skilled AI professionals is crucial for Australia to remain globally competitive.
Main AI News:
The labor markets in New South Wales (NSW) and Victoria are experiencing a transformative shift driven by artificial intelligence (AI). These two states are at the forefront of adopting emerging AI technologies, accounting for a significant majority of the new job opportunities in this field across Australia. Surprisingly, despite representing 57 percent of the overall workforce, NSW and Victoria together contribute to a staggering 76 percent of the new AI jobs in the country.
As the federal government deliberates on regulatory frameworks to govern the use of this transformative technology, the release of Australia’s first AI human capital index has shed light on the dominance of these two states. The report underscores the need to regulate AI’s rapid acceleration, with a focus on applications like ChatGPT. It is encouraging to witness the surge in private sector investment in AI, with leading institutions such as banks, consultancies, and accounting firms spearheading the way. Prominent entities like the federal government, Commonwealth Bank, Deloitte, Amazon, and Macquarie Bank have emerged as the top employers, actively recruiting individuals with AI skills.
However, the research also highlights the existence of disparities among states and industries in terms of AI development. While NSW, Victoria, and the Australian Capital Territory (ACT) have excelled in AI implementation, Queensland and Western Australia (WA) have fallen short of expected benchmarks. NSW claims 49 percent of the AI jobs, followed by Victoria with 27 percent, whereas Queensland and WA lag behind, each with only 8 percent of AI-related workers.
To identify the growth patterns and demand for AI skills, Mandala Partners, an economics advisory firm, analyzed job advertisements from the past decade and compared the figures with overall labor force statistics for each state. The study elucidates the urgent need to encourage AI investments across the entire country. Amit Singh, the Managing Partner at Mandala Partners, stresses the importance of spreading the benefits and productivity gains of AI to regional Australia, including farmers, doctors, miners, and teachers. Singh emphasizes that AI is not limited to Sydney and Melbourne; it is a technology for all Australians.
Additionally, the research reveals a fierce competition for AI talent between large corporations and the Commonwealth public service. Over the last seven years, the federal government has posted a staggering 2,728 AI job advertisements, followed by the Commonwealth Bank with 1,739, Deloitte with 1,287, Amazon with 1,077, Macquarie Bank with 983, and the NSW government with 867. The study further uncovers the transition of AI investments from universities to the private sector in Australia. In 2012, only 756 jobs referenced AI skills, whereas, in 2021, this number skyrocketed to 20,505.
Previously, universities and sectors like financial services and mining dominated AI investments. However, over the past five years, professional services and technology firms have significantly increased their investments to provide AI services to clients. More recently, industries such as logistics and manufacturing have also begun investing in AI capabilities. Presently, the professional services industry leads the pack in terms of AI job opportunities, closely followed by financial services, education, and IT and media.
The study also sheds light on the impact of the tech layoffs during the previous year, which resulted in a downturn in AI job advertisements. However, this trend has since reversed, indicating an increasing demand for professionals with AI skills across various sectors. Amit Singh highlights the long-standing need for AI skills and emphasizes that after the tech downturn, the trend for AI skills is resurging with accelerated momentum.
Recognizing the significance of AI, the government has initiated consultations with industry experts to formulate a comprehensive policy for regulating this technology. Industry and Science Minister Ed Husic’s spokesman stated that the government aims to maximize the benefits of AI while mitigating potential risks. The ongoing consultations will shape the future regulatory landscape, and further steps will be unveiled after careful consideration of the submissions.
Opposition science spokesman Paul Fletcher acknowledges the strong demand for individuals with AI skills across the economy, emphasizing the need to update regulatory frameworks to address potential risks. However, he emphasizes the larger challenge at hand: ensuring that Australia remains globally competitive in this field. Fletcher highlights the fact that Australia currently produces fewer than 200 AI PhDs annually, emphasizing the urgency to foster and expand the pool of skilled AI professionals.
Conclusion:
The increasing presence of artificial intelligence in Australia’s job market signifies a significant transformation. The concentration of AI jobs in NSW and Victoria highlights the need for equitable distribution across all states and industries. The private sector’s active investment in AI showcases its potential for enhancing productivity and efficiency. However, disparities among states and sectors call for efforts to bridge the gap and ensure widespread AI adoption. The government’s commitment to formulating appropriate regulations demonstrates its intention to maximize the benefits of AI while managing associated risks. To maintain competitiveness, Australia must prioritize the development of skilled AI professionals and invest in education and research initiatives.
