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AI adoption and firm demand for workers and skills: New insights from Australia

Author

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  • Claire Mason

    (CSIRO)

  • Haohui Chen

    (CSIRO)

  • David Evans

    (CSIRO)

Abstract

The latest Artificial Intelligence (AI) tools can perform some of the complex tasks that highly skilled and well-paid workers perform. In this study, we analyse an Australian dataset of firm job postings to explore the effects of AI adoption on demand for workers and skills. Our findings suggest that AI adoption increases demand for new workers and skills. Both the number of job postings and the number of skills required in job postings grew slightly faster in AI adopting firms than in non-adopting firms, after controlling for firm size, geography and industry. AI exposed occupations did not experience lower demand than non-exposed occupations, unless they were employed in a non-adopting firm. It is not clear whether the stronger demand for new workers in AI adopting firms is due to the need to replace existing workers with new workers (with new skills) or due to growth in the total number of workers. However, our findings counter fears about AI substituting for or deskilling workers and align with the view that the latest AI tools serve to augment, rather than substitute for, human capability.

Suggested Citation

  • Claire Mason & Haohui Chen & David Evans, 2025. "AI adoption and firm demand for workers and skills: New insights from Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 28(1), pages 1-28.
    • Handle: RePEc:ozl:journl:v:28:y:2025:i:1:p:1-28
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