AI jobs thin on the ground, Aussie research suggests

We’ve been repeatedly told artificial intelligence (AI) will take our jobs, a mantra that in recent years changed to someone able to use the technology being the preferred hire, but is that the case?

Research published by Australia’s assistant minister for employment, Andrew Leigh, suggests it might not be, if data from large online employment site SEEK is to be believed.

In a talk to a joint conference on human capital, held by the the Australian Bureau of Statistics (ABS) and the Reserve Bank of Australia (RBA), Leigh presented job ads analysis done together with SEEK chief economist Matt Cowgill.

Despite AI being in the headlines non-stop, and seeing massive public interest particularly for large language models that can generate text and imagery, this has not translated into a bonanza for job seekers versed in the technology.

Instead, the SEEK data shows “AI jobs constitute a tiny share of advertised positions,” Leigh said. Only 1 in 588 advertised roles were for AI, comprising a mere 0.17% of the total. 

AI Jobs” as a proportion of SEEK job ads. Source: Dr Andrew Leigh

What’s more, the share of job ads asking for AI skills has declined in the last two years; this year, only about 1 in 1000 descriptions of advertised roles contained the phrase “artificial intelligence,” Leigh noted.

AI jobs pay better than their non-AI equivalents but adjusted for control factors such as location, the premium was just 6%. For 2023-24, the premium dropped to a mere 4%.

While the average salary for AI jobs in the 12 months to March this year was A$121,275, which is 31% more than for non-AI jobs, this reflects the fact such employment is overrepresented in occupations that pay well from the outset. This is regardless of whether or not AI skills are mentioned.

The research does not expound at length on why an AI jobs boom across the Tasman hasn’t materialised. Leigh notes in retail and consumer products industries, roles with the AI technology requirement are non-existent.

Science, technology and research jobs on the other hand ask for AI skills, but again the share of job ads requiring that is low.