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Introduction
Jobs and Skills Australia is undertaking a capacity study on the implications of generative artificial intelligence (Gen AI) for the Australian labour market and skills system.
The Gen AI Capacity Study (the Study) will provide critical evidence and insights to inform government strategy and policy regarding the impacts of Gen AI on the labour market, on workforce planning and on associated needs within the national skills system.
The Study is considering related domestic and international research and policy developments, including related parliamentary inquiries at the Commonwealth and state levels, in analysing workforce and skills issues and opportunities. The study will assess the implications of Gen AI for job creation, job displacement, transitions as well as skills demand.
A key priority for this study is to undertake thorough consultation and collaboration with a diverse range of stakeholders, including those from the tertiary education sector, workers, industry, and cohorts that are disproportionately affected by Gen AI developments.
The study will deliver its final report in mid-2025.
Project scope
The Project Scope document contains further detail on the study. The study is structured into three main streams to consider how Gen AI will interact with the labour market over the medium term:
1. Labour Market Implications:
- Establish an overview of Gen AI adoption across different sectors and occupations.
- Analyse trends in Gen AI-related skills demanded and the tasks exposed to Gen AI.
- Examine the current state of Gen AI integration in the workplace, including employer and worker perspectives.
- Assess the hybrid exposure to Gen AI of industries, occupations, and regions, including emerging opportunities and risks.
- Investigate how Gen AI affects the workplace, including quality of work, structural impacts, job security, wages and conditions.
- Identify variations by occupation and industry.
2. Transition Strategies:
- Explore strategies for responding to these impacts, including identifying characteristics of workers most likely to be affected and developing pathways and interventions to support their transition to new roles.
- Reflect the experiences of different cohorts, including opportunities and risks for various demographic and age groups to ensure an inclusive and efficient transition.
- Consider the augmentation, adaptation and automation effects on cohorts depending on skill level.
- Determine enablers and blockers to Gen AI adoption or participation, including education and training system implications.
- Examine the settings that influence Gen AI adoption in the workplace and its impacts on the labour market.
3. Skills System Implications:
- Assess the implications of Gen AI for the skills system, including how it may need to adapt to meet new demands and how the labour market is adapting.
- Investigate the role of education and training systems in supporting the transition to a Gen AI-integrated labour market.
- Provide recommendations on adapting the skills system to ensure it meets the needs of the future labour market.
The study will apply both qualitative and quantitative research methods and extensive consultation with stakeholders to provide recommendations to Government on establishing an inclusive and sustainable pathway to a Gen AI-integrated labour market.
Have Your Say on Gen AI - Consultation Hub
It is critical for the Study to be informed by diverse perspectives on how Gen AI is affecting work and workplaces in the Australian labour market, including:
- Intersectional experiences with Gen AI in the labour market
- Worker perspectives on implementing Gen AI technology
- Business perspectives on working within a fast-moving technological landscape
- Digital access and capabilities as enablers for a Gen AI transition
To date, Jobs and Skills Australia (JSA) has consulted with a range of organisations through meetings, roundtables, focus groups, surveys and case studies, targeting the Study's scope.
Participants to date have included industry bodies, businesses, trade unions, government agencies, and non-government organisations. We have also consulted a range of individuals, including workers, managers, and business owners – some of whom participated in focus groups. The Study’s approach to consultation has been guided by its Steering Group, and has also been supported by the JSA Ministerial Advisory Board.
We are grateful for the robust engagement and generous assistance to date.
As part of our consultation hub, we are inviting ongoing engagement and response from stakeholder groups on central questions, by 16 May 2025. You may wish to provide responses in writing via our consultation hub or to engage with the Study Team directly via AICapacityStudy@jobsandskills.gov.au.
Expression of interest - Case studies
As part of the project, JSA will use case studies to demonstrate the practical impacts of Gen AI. We invite organisations and individuals to express their interest in participating in the development of a case study.
The case studies are intended to:
- offer concrete examples that illustrate the applied implications of AI that cannot be obtained from quantitative methods alone
- capture a diversity of views and experiences that quantitative data might miss, including those of employers, workers, and priority cohorts, and
- validate and enrich the findings from quantitative research methods, such as economic modelling or exploratory data analysis.
Insights from case studies, at organisational and individual levels, are a critical input for the Gen AI Capacity Study in developing strategies to support workers and industries as they navigate the evolving landscape of AI.
To express your interest in participating in this process, please email aicapacitystudy@jobsandskills.gov.au including a brief description of your proposed case study and how it relates to one or more of the streams identified in the project scope above.
Contact
To contact the team, please email: aicapacitystudy@jobsandskills.gov.au