Workers must embrace artificial intelligence to keep their jobs, research warns

Could AI get you a pay rise? A new report says workers who embrace artificial intelligence will reap financial rewards – but those who ignore the technological revolution could find themselves redundant.

Workers who learn to use artificial intelligence and robots will fare best in the fast-changing world of work, a new Pearson report reveals

Workers who embrace AI could be in line for a 12 per cent pay rise within two years, a new report shows, with artificial intelligence set to disrupt 1.5 million Australian jobs by 2030.

Pearson, one of the world’s largest private providers of educational materials and assessments, has calculated that Australia loses $104bn a year through “slow, inefficient career transitions’’ as workers fail to keep pace with technological change and re-skill after redundancy.

“We estimate 26 per cent of jobs are at high risk without up­skilling and embracing AI,’’ Pearson states in a new report, Lost in Transition: Fixing the Skills Gap.

“Automation technologies – such as robotic process automation, large language-model chatbots, agentic AI models and autonomous mobile robotics – require individuals to re-skill for completely new or changed tasks’’.

Pearson says staff who re-skill to use AI or automation are more likely to see wage growth of 8 to 12 per cent within two years. AI could wipe out some jobs, the report states, but it will also create new ones requiring a human touch.

“As automation increases, there will be growing need for individuals who can guide how AI is used, organise workflows, and ensure the results are useful, accurate and aligned with business goals,’’ the report states.

“This shift will increase the value of creative thinking, sound judgment, and human oversight.’’

Artificial intelligence and automation will disrupt 30 per cent of jobs within five years, a new Pearson report reveals

The “non-market’’ sector of healthcare and social assistance, education and training and public administration has accounted for 55 per cent of net job growth over the past five years, the report says.

“While these sectors are growing, the skills needed often differ from those held by workers displaced from other areas such as manufacturing or construction.

“This shift suggests emerging gaps between where jobs are being created and where workers are coming from.’’

Some 7 per cent of Australian workers have jobs that don’t align with their skills and qualifications, the report claims. And 30 per cent of high-skill workers, with specialised expertise, advanced qualifications or extensive professional experience in their field, worked in occupations classified as middle and low-skill from 2016 to 2023.

The skilled workers displaced less-qualified workers and entry-level jobseekers.

The head of Pearson in Australia, Taha Haidermota, said workers would need lifelong learning to keep up with the coming technological changes. He also said 9 per cent of youths were unemployed – double the general jobless rate.

“The old model of education as a one-time launch into a career is no longer fit for purpose,’’ Mr Haidermota said. “The scale of change we’re seeing is unprecedented. We need employers, educators and policymakers to come together to ensure young people get aligned to opp­ortunities in the economy, and create a joined-up system (of education and training).’’

Mr Haidermota said AI would make human skills even more important than technical ability.

“Communication, leadership, customer service, collaboration and attention to detail are the sorts of skills that will set you up for success,’’ he said.

The Pearson report comes as a new survey shows one in three Australian adults have embraced AI, with use surging 15 per cent since January.

Nearly half those with a university degree used a generative AI chatbot such as ChatGPT, Claude or MS Copilot in the three months to August.

The survey of 2500 Australians, by the News Corp Australia Growth Intelligence Centre, shows rising adoption of AI across all demographics this year. Among full-time workers, 44 per cent have used a chatbot in the past three months. Even among Australians who are not working – including students, retirees, stay-at-home parents and the unemployed – adoption has doubled this year to 22 per cent.

GIC head of research James Taylor said people were rapidly adopting AI, even though most felt uneasy about its role in society.

“Usage has nearly doubled in just eight months, driven not only by young, educated and working Australians, but also by surprising growth among those with lower levels of education, and people out of work,’’ he said.

Originally published as Workers must embrace artificial intelligence to keep their jobs, research warns