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Australia ‘must rise to AI challenge’

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Australian workers and businesses are not keeping up with the skills needed for an economy driven increasingly by artificial intelligence (AI), and the nation needs a comprehensive plan to meet the demands of today’s emerging technologies, warns the Australian Computer Society (ACS).

In its 2023 Digital Pulse report, ACS and partner Deloitte found that while there has been 7 per cent growth in the number of people employed in the technology sector, the nation’s workforce does not have the skills to deal with the modern digital economy and, with the anticipated flood of accessible AI tools, a crisis is looming.

According to the OECD, non-technical skills are critical to a worker’s productive capacity; employers want people who “know how to learn”. 

“Emerging technologies such as AI are driving a need to reskill,” says Siobhan Casey, chief growth officer at the ACS. “Technology adoption is growing even after the release of the accelerator pedal that was pushed down during the pandemic. We have vastly boosted the demand for technology, but the supply side has not kept up.”

The federal agency Jobs and Skills Australia backs this with research spotlighting a significant shortfall of people in technology roles. Those shortages are increasing with the agency saying the issue is driven by a lack of people with essential technical skills and non-technical qualities employers consider important.

Rectifying the supply side issues is not possible through any single solution. As a multifactorial problem, it requires a multifaceted solution. That starts in education, where Casey sees some interesting dichotomies emerging.

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“There is quite low interest in STEM careers in high school with only 16 per cent of boys and just one in 25 girls interested in STEM,” she says. “But students are also keen users of generative AI tools. Some students are asking AI to create practice tests for them by entering study notes and topical information.”

Siobhan Casey, Australian Computer Society chief growth officer. 

Building greater interest within schools is not easy. Teachers and students find it difficult to keep pace with technology changes and traditional perceptions of what technology careers look like can be hard to shift.

However, some positives are emerging with various programs reaping early success.

The ACS research found that new graduates rarely hit the workforce ready to thrive, with the data revealing that just 3 per cent of graduates are considered “job ready” when starting out in the industry.

The OECD, which represents the world’s leading economies, notes that non-technical skills are critical to a worker’s productive capacity, with its research revealing that many employers are looking for people with a broader set of skills that go beyond the technical. In particular, the OECD says employers are looking for people who “know how to learn”.

“It’s not the technical skills that are the major issue,” Casey adds. “Human skills such as collaboration, teamwork, problem solving and planning are highly valued. Employers want people who can manage uncertainty and are resilient. It’s their human skills that are slowing them down.”

Students who have part-time jobs in fields such as hospitality and retail are more likely to develop those skills, which can give their professional careers a boost. But Casey notes that in some cultural groups the heavy focus on academic performance means students don’t take the opportunity to work in jobs that develop those complementary skills.

While the gateway at the entry to technology careers needs to be addressed, there are other ways to boost participation in technology. There are many opportunities for skilled immigrants, with government incentives for those prepared to work outside of Sydney and Melbourne.

“It’s not the technical skills that are the major issue,” Casey says. “Human skills such as collaboration, teamwork, problem solving and planning are highly valued. Employers want people who can manage uncertainty and are resilient. It’s their human skills that are slowing them down.”

Siobhan Casey

But while local technology workers are likely to have found jobs within about three months of searching, according to the ACS research, skilled immigrants take about a year, on average, to find work. As well as impacting the individuals, there comes an economic impact.

Research from Gartner says that each skilled immigrant brings about half-a-million dollars in benefits to the national economy. Slowing their entry into the workforce hurts everyone.

“Local workers have the benefit of networks they build through their lives,” says Casey. “Immigrants, despite having the requisite technical skills, lack local networks, where many jobs are shared outside traditional recruitment systems, and there is a bias in employers towards recruits with local experience.”

Those recruitment issues extend further. Many job ads, according to Casey, specifically ask for people that are degree qualified in IT. Yet around 70 per cent of the current cohort of technology workers came from non-IT backgrounds.

Now that technology is embedded in almost every job, the pool of people who can pivot and leverage their business experience in IT is significant and could help put a significant dent in the current jobs shortfall.

Although the shortage of talent could ultimately cost the economy an estimated $16 billion by 2030, Casey says some positives are beginning to emerge as we are seeing many different approaches that take a significant step forward.

“Emerging technologies such as AI are driving a need to reskill. Technology adoption is growing … We have vastly boosted the demand for technology, but the supply side has not kept up.”

Siobhan Casey

“Such a large and complex problem won’t be solved by any single policy, agency or private company. Everyone needs to work together,” she says. “We continually look for programs that are working and look for ways to scale those programs and amplify their success.”

Tackling the technology skills shortage is critical to the national economy. A year ago, the job “AI prompt engineer” didn’t exist but by the end of the decade roles like this will be commonplace.

Australia must prepare now, says Casey, if the nation isn’t to be left behind.

To learn more, visit www.acs.org.au.

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    Original URL: https://www.afr.com/technology/australia-must-rise-to-ai-challenge-20231121-p5elk0