No strong evidence of AI replacing entry-level workers, report finds
Artificial intelligence tools are more likely to augment work instead of replacing workers, according to Jobs and Skills Australia (JSA), despite previous warnings of a "painful" transition for workers in AI adoption.
The new report, Generative AI Capacity Study, from JSA offered a whole-of-labour-market view of generative AI's impact in workplaces and found that Gen AI will have a greater capacity to augment rather than automate work.
"Current Gen AI technologies are more likely to enhance workers' efforts in completing tasks, rather than replace them, especially in high-skilled occupations," the report said.
It noted that Gen AI's impact on employment and productivity will vary based on workplace decisions, consumer demand, and policy responses.
The findings come after the Productivity Commission previously warned that AI adoption may mean a "painful" transition for some employees whose roles are made redundant.
Impact on work tasks
The JSA report noted that the potential to automate tasks is highest for middle-skill occupations, including several forms of clerical work.
"Many clerical tasks — that were not affected by previous waves of automation — could now be undertaken in large part by Gen AI," the report said.
But the report noted that while exposures can help describe the potential use of Gen AI, it does not account for many practical aspects of work.
"Many tasks that are 'exposed' to Gen AI may not be automated for reasons related to social norms, inherent value of human interaction, regulations affecting adoption, or other factors," it said.
As an example, it cited that communication tasks are technically exposed to automation, but are unlikely to be automated when used for delivering legal judgement or sensitive news.
"These practicalities are not reflected in the exposure scores. As such, the scores provide a useful but limited frame for considering where the scope of work could evolve with technological change," the report said.
Impact on entry-level roles
The adoption of AI tools in workplaces has led some to predict that entry-level roles will likely disappear.
In the United States, some organisations have also indicated that they will reduce their workforce as a result of AI adoption.
"There is not strong evidence that this is occurring to the same extent in Australia," the JSA report said.
It pointed out that online job ads between 2023 and 2024 showed that demand for AI skills varied by seniority. It noted that 24% of Gen AI-related job ads were for senior roles, or those requiring at least five years of experience.
"There isn't any indication from these data that entry-level roles have been impacted either according to AI exposure or based on early data on industry adoption," the report said.
"This is not surprising, given the early stage of adoption, when other factors, such as broader economic conditions, are likely to be more significant."
However, the report warned that this does not mean entry-level positions will not be affected in the future, where generative and agentic AI are further implemented.
"In such cases, while this could lead to a reduction in hiring of entry-level workers, it is also likely to result in a shift in what entry-level work looks like," the report said.
Commissioner of Jobs and Skills Australia Barney Glover said Australia needs to be "conscious" of how Gen AI can augment work and automate tasks.
"Adaptability will be critical for Australia to realise the potential benefits from AI, which will see new jobs emerge and existing jobs change," Glover said in a statement.
"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."
