Most Australian firms expect artificial intelligence to eliminate up to 20% of jobs within the next two years [1].
The projection signals a shift in how businesses view human capital during the AI transition. While some industry leaders view automation as a tool for augmentation, the data suggests a growing corporate trend toward restructuring and headcount reduction.
Cynthia Cottrell, a workforce solutions leader at Mercer, discussed these findings on Bloomberg Television. She said AI could cut up to 20% of jobs within two years [1]. The findings point to a workforce that is lagging behind in skills while firms experience uneven adoption of the technology.
This trend in Australia mirrors broader corporate movements in the U.S. and North America. Major U.S. automakers recently cut more than 20,000 salaried jobs, representing 19% of their combined workforces [2]. Similarly, Amazon reduced its corporate staff by about 14,000 jobs [3].
Not all industry figures agree with the decision to reduce staff. Demis Hassabis said those cutting jobs because of AI "lack imagination" [4]. This creates a divide between those who see AI as a replacement for labor, and those who view it as a way to create new roles.
Despite the debate, the current climate in Australia is marked by rising fear and falling worker confidence. The push toward automation-driven reductions is fueled by a need for restructuring as companies attempt to integrate AI into their core operations.
“AI could cut up to 20% of jobs within two years.”
The disparity between corporate projections and the views of AI developers suggests a critical gap in how automation is implemented. While technical leaders argue for the creation of new roles, the actual corporate behavior in Australia and the U.S. indicates that firms are prioritizing immediate cost reductions and efficiency over long-term workforce retraining.
