As technological advancements continue to progress globally, the potential implications of Artificial Intelligence (AI) on Australia’s economy and job market have come into question. The looming threat of AI is a cause for concern, with many expressing apprehension about its potential impact on the workforce.
Drawing parallels to the Industrial Revolution, wherein workers rebelled against the mechanization of their jobs, known as Luddites, it is evident that the shift from labour-intensive to labour-light industries during that era resonates with the current AI revolution. The introduction of new technologies such as cotton mills resulted in the replacement of hand labour with more efficient production processes, a phenomenon that mirrors the potential impact of AI on jobs today.
In the present AI revolution, it is the service sectors that are most susceptible to automation. These sectors constitute a substantial 80% of the Australian economy, and estimates suggest that approximately 300 million jobs may be at risk worldwide, comprising roughly nine percent of all global employment opportunities.
Although the impact of AI on jobs may not manifest as rapidly as anticipated, its potential consequences are undeniable and significant. Workers in the service sectors are likely to encounter challenges as automation becomes more prevalent in the production chain, necessitating potential advocacy for government support in the form of policies such as universal basic income, robot taxes, or retraining subsidies.
Australia’s economy faces a unique risk due to its growth structure. While developed market economies typically grow through business investment, Australia’s growth relies on expanding its labour market through immigration and public investment to mitigate falling living standards. If AI poses a threat to jobs, foreign workers may face obstacles, rendering the current economic model unsustainable.
The convergence of weakened labour markets and potential job losses due to AI underscores the pressing need to address the sustainability of the current economic model in Australia. Political intervention may be imperative for the implementation of supportive policies and measures to alleviate the impact of AI on the job market.
The pivotal role of AI in reshaping the job market and economy presents a significant concern for Australia’s future, emphasising the necessity of addressing these challenges to ensure a sustainable economic model. Insights from David Llewellyn-Smith, Chief Strategist at the MB Fund, offer valuable perspectives on the potential impact of AI on Australia’s future and the measures that may necessitate consideration. As the world continues to evolve, it is imperative to take proactive measures in understanding and addressing the impact of AI on the future of Australia’s economy and job market.