AI's Impact on Australian Jobs: Will It Create Opportunities or Mass Unemployment?

The AI Revolution and Its Impact on Jobs

Sadiq Khan, the Mayor of London, has issued a stark warning about the potential impact of artificial intelligence on jobs, highlighting risks that could resonate with Australian workers as well. In a major speech, he cautioned that AI could "usher in a new era of mass unemployment" if not managed properly, particularly affecting white-collar sectors like finance, creative industries, and professional services.

Why This Matters for Australia

While the speech focused on London, the implications are global. Australia's job market, with its strong presence in finance, law, consulting, and creative fields, could face similar challenges. Khan emphasized that entry-level and junior jobs are likely to be the first to disappear, raising concerns for early-career professionals and graduates.

The Scale of Change

Research cited in the speech suggests that 70% of skills in the average job will have changed by 2030, underscoring the rapid transformation driven by AI. This aligns with broader trends where automation and AI could displace millions of jobs worldwide, including in Australia.

The Dual Nature of AI

Khan acknowledged the huge potential benefits of AI, such as transforming public services, boosting productivity, and tackling complex challenges. However, he warned that reckless use could lead to job destruction. He framed it as a choice: "Seize the potential of AI and use it as a superpower for positive transformation or surrender to it and watch as it becomes a weapon of mass destruction of jobs."

Initiatives to Mitigate Risks

To address these challenges, City Hall is launching a London taskforce on AI and the future of work, involving government, businesses, and AI experts. This includes offering free AI training for Londoners, a model that could inspire similar efforts in Australia to upskill workers.

Mixed Views on Job Replacement

Experts offer varied perspectives on how many jobs AI might replace. For instance:

• A report by the National Foundation for Educational Research found that up to 3 million low-skilled jobs in the UK could disappear by 2035 due to automation and AI.
• Anthropic, the AI developer behind Claude, reported that an increasing share of job types can use AI for at least a quarter of their work, but noted that human collaboration and judgment remain essential for knowledge-intensive tasks.
• Forrester released a study suggesting AI and automation will have a "more modest impact than expected" on US jobs through 2030, warning against "over-automating roles due to AI hype."

Lessons from Past Technologies

Khan criticized slow responses to new technologies in the past, citing how the growth of social media led to issues like youth mental health crises and misinformation. This serves as a cautionary tale for Australia's approach to AI regulation and workforce adaptation.

Broader Context: Safety and Perception

Separately, Susan Langley, Mayor of the City of London, addressed concerns about safety affecting finance workers' willingness to relocate, emphasizing that perceptions can impact economic competitiveness. This highlights how global factors, including safety and reputation, can influence job markets and talent mobility.

Key Takeaways for Australian Professionals

• Stay informed about AI trends and their potential impact on your industry.
• Invest in upskilling, particularly in areas where AI complements human skills rather than replaces them.
• Advocate for balanced policies that harness AI's benefits while protecting jobs.
• Monitor global developments, as decisions in places like London can set precedents affecting Australia.

As AI continues to evolve, Australian workers and policymakers must proactively engage with these changes to ensure a future where technology enhances, rather than undermines, job security and economic stability.