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AI isn’t replacing jobs – It’s rewriting the work

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AI is dominating workforce debate, but recent Australian evidence suggests the impact is less dramatic than the headlines imply.

The July 2026 Department of Employment and Workplace Relations AI and Employment in Australia report found no evidence of widespread AI-driven job losses or labour market disruption. Employment remains strong, youth employment is stable, and occupational change has not accelerated since ChatGPT.

What is changing is growth. AI-exposed roles, especially routine clerical and administrative work, are growing more slowly than less-exposed occupations, but they are still growing overall.

Skills, not jobs, are being disrupted

The report reinforces a key workforce trend: AI affects tasks before jobs. It automates, augments and creates work, shifting skill needs rather than replacing whole roles.

Even roles seen as vulnerable continue to grow. Software and Applications Programmers, for example, have increased by around 25% since ChatGPT was released.

What this means for leaders

The challenge is no longer, “Which jobs will AI replace?” It is, “Which skills will create value in an AI-enabled organisation?”

Leading organisations are investing in the below, before or alongside technology implementation:

  • Job redesign
  • Work and skills architecture
  • Capability frameworks
  • Workforce planning
  • Continuous learning

Key takeaway

AI is not eliminating jobs at scale; it is reshaping work and accelerating the move to skills-based organisations.

Those that thrive will focus less on headcount reduction and more on capability, job redesign and helping people work effectively with AI.

Connect with us

If you have concerns regarding the impact of AI in the workplace, please contact us below and one of Workplace Strategists will be in touch within 24 hours.

Written by:
Principal Consultant - Workplace Strategy
Sally is an energetic and collaborative Human Resources specialist who combines strategy and experience to find the best possible people solutions for her clients.