A personal view of Australian and International Politics

Thursday, 4 June 2026

Australia gains access to powerful AI amid questions about readiness.

Extract from ABC News

By chief digital political correspondent Clare Armstrong

Topic:Federal Government

18 minutes ago

The use of a powerful AI model has been limited by the US company due to its cybersecurity capabilities. (Reuters: Dado Ruvic)

In short:

The Australian government and several private companies have gained access to a powerful artificial intelligence model not released publicly due to its cybersecurity risk.

Anthropic has granted 150 organisations across 15 countries, including Australia, access to its Claude Mythos Preview as part of the expansion of its Project Glasswing.

What's next?

Independent MP Kate Chaney is calling on the government to step up its response to AI amid concerns Australia is not preparing fast enough for the opportunities or risks.

Australia has gained access to a highly advanced artificial intelligence system deemed too dangerous for public release, as the federal government is urged to speed up its response to the risks and opportunities of AI.

Several private companies and the government are among 150 additional organisations across 15 countries granted use of Anthropic's Claude Mythos Preview AI model, which the US company has not made widely available due to its cybersecurity capabilities.

Australia's inclusion in Anthropic's "Project Glasswing" on Wednesday was welcomed by the nation's cyber security agency, but the government has declined to confirm any specifics around its Mythos access.

Labor is also facing calls from an independent MP to step up its efforts to keep pace with the rapid AI advances impacting the economy, workplaces and national security.

Mythos is a powerful AI model able to identify software and network flaws that would pose a significant cybersecurity risk in the wrong hands.

As a result, Anthropic has previously only released access to a preview of Mythos to the UK and US governments as well as about 50 American companies in an effort to help these organisations identify and address any cyber weaknesses.

The expansion of Project Glasswing is understood to include members of the NATO military alliance and European Union, with Anthropic confirming in a statement the organisations offered access to Mythos included critical industries like energy, water, healthcare and communication operators.

"Many of the new partners are vendors — companies or non-profits that maintain codebases that are relied upon by lots of other organisations around the world, including governments," the Anthropic statement said.

"What each partner has in common is that a successful attack on their codebase could be catastrophic."

Anthropic previously provided briefings about Mythos to officials from the Reserve Bank of Australia, Treasury and 170 representatives from what are known as Systems of National Significance like banks, grocery, transport and health services.

A spokesperson for the Australian Signals Directorate said they "welcome" Anthropic's decision to "expand Project Glasswing to approximately 150 additional entities globally, including the Australian government and other Australian private companies".

The office of Home Affairs Minister Tony Burke declined to comment on the Anthropic announcement.

A man and a woman sit on a stage at a forum with a crowd underneath. — Anthropic CEO Dario Amodei says he thinks AI could enhance democracies. (ABC News: Supplied: Futures Forum)

Anthropic chief executive Dario Amodei was in Canberra earlier this year where he said he believed AI could enhance democracies and their institutions.

"AI is a powerful technology," he said.

"I don't want autocracies to be militarily more powerful than democracies.

"I want to make sure democracies continue to have the upper hand."

Trump asks AI companies to submit models for cybersecurity assessment

US President Donald Trump signed a new executive order earlier this week asking American tech companies to voluntarily share their powerful AI models for government cybersecurity testing up to 30 days before they are publicly released.

Mr Trump has previously resisted regulating tech, and his new order stated the US "continues to lead the world in AI" and won't "stifle" that innovation with "overly burdensome regulation".

Donald Trump speaking during a cabinet meeting at the White House. — US President Donald Trump is against stifling innovation with "overly burdensome regulation". (Reuters: Evan Vucci)

OpenAI chief executive Sam Altman said the order "gets the balance right".

"The US should lead on AI by continuing to develop the very best models, making sure they're safe, and getting cyber tools into the hands of trusted defenders," he said.

Mr Altman and his company, which operates ChatGPT, is being sued by the US state of Florida over the chatbot's alleged links to violence.

Incidents raised in the complaint, which was filed this week, include a shooting that killed two people at the Florida State University allegedly planned in part through conversations with ChatGPT.

Mr Altman and OpenAI has denied wrongdoing in relation to the case.

But Florida has accused OpenAI of deceiving consumers about the safety of ChatGPT while knowingly promoting a product its own research had flagged as dangerous.

OpenAI allegedly ran advertising campaigns targeting families, including specifically teen users, even as internal researchers were raising concerns about the chatbot's propensity to provide dangerous advice, encourage self-harm or foster behavioural addiction.

Labor under pressure to speed up its AI responses

Independent Curtin MP Kate Chaney on Wednesday launched an AI discussion paper amid concerns the government was moving "too slowly" to both capture the opportunities and manage the risks posed by the technology.

"I think the government's approach to AI is pretty hands off, it seems to be, 'we'll see what happens, it's going to be fine, it's probably not going to change as fast as everybody says it will', and I think that's really concerning," she said.

"If we want to actually make the most of the opportunities, we are going to need to actually have safeguards in place to build the public trust in AI, and I think that requires a much more active approach than the government is taking."

A woman with short brown hair and a white blazer faces the camera. — Independent MP Kate Chaney highlighted concerns around the AI generation of child sex abuse material as one of 18 urgent priorities. (Supplied: ABC News Canberra)

Ms Chaney's paper outlined 18 "policy priorities" including urgently addressing the "current harms" of AI like the generation of child sex abuse material, risks posed to children by AI chatbots that simulate emotional intimacy and "overwhelming" volume of AI deepfakes and disinformation.

Other issues identified included the need to increase resourcing for the Australian AI Safety Institute so it could "keep pace" with developments and conduct analysis of likely job losses caused by AI.

Ms Chaney has also called for the government's Data Centre Expectations to be made into binding obligations.

It is understood work is already underway with state and territory ministers to translate the non-binding expectations into requirements around water and energy consumption for data centre developments.

A new Greenpeace report last month found data centres powering the AI boom could demand more new electricity in the next 15 years than Australia's cars or homes.

Data centres fuel economic growth in Australia amid trust concerns

Assistant Technology Minister Andrew Charlton this week warned a "shortage of trust" was the greatest single threat to Australia's AI "success".

"Unless we can look an Australian family in the eye and tell them, truthfully, that data centres will not push up their power bills, will not threaten their water, and will not degrade their neighbourhood, this industry will spend the next decade on the back foot, fighting the same losing battle we are watching play out overseas," he said.

Man in suit and tie stands in front of grey backdrop — Andrew Charlton says mistrust towards AI is its biggest threat. (ABC News: Matt Roberts )

Significant investment in data centres was a major factor in economic growth figures released on Wednesday.

Treasurer Jim Chalmers said data centre investment was a "big part of the story" behind Australia's economy growing by 0.3 per cent in the first three months of the year.

"This government has always said that when we see this welcome investment in tech infrastructure, we want to make sure it's consistent with all our other obligations — whether it be natural resource management, whether it be skills, issues around foreign investment and the like," he said.

"This investment is overwhelmingly a good thing, but the government's AI plan and the work that the government is doing is all about making the most of it and making sure that all of this investment serves our national economic interest."

What do the Pope and most Australians have in common? Neither trust AI companies.

Extract from ABC News

Analysis

By national AI reporter Cam Wilson

Topic:AI

9 minutes ago

Pope Leo XIV wearing a Chicago White Sox cap — Pope Leo XIV has urged global governments to slow down the development of AI systems and their disruptive effects. (Reuters: Remo Casilli)

It's not often that the Pope, college students and Australians agree.

One topic that has put these unusual bedfellows all roughly on the same page is artificial intelligence.

Last week, Pope Leo XIV published his first encyclical, a 43,000-word plea to address the threats posed by AI.

American college students have been expressing their concerns by booing esteemed commencement speakers who mention the new technology (the exception that proves the rule was Australian comedian Ronny Chieng who was greeted with cheers for his message "F*** AI" at a Harvard ceremony).

It's not just a set of outlier students and pontiffs, either. Most Australians do not have particularly fond feelings towards the new technology, polling shows.

Should data centres fund their own power generation? (Mike Lorigan)

Australians dislike and distrust AI

Australians have the equal most negative views towards AI in the world, according to an EY survey of people from 23 countries.

Almost half of Australians surveyed for the Minderoo Foundation say the risks outweigh the benefits, compared with about a third who believe the opposite.

Only 4 per cent of Australians say they trust their private information with AI companies, according to a new survey done by Australia's Office of the Information Commissioner.

Research from the Tech Policy Design Institute found that just 1 per cent of Australians say they have complete trust that AI will be used responsibly.

This feeling is manifesting in real world politics. Just a few years ago, the construction of data centres being used to serve AI and other tech services was mostly uncontroversial and rarely newsworthy.

Now, residents from places like Lane Cove in Sydney and West Fitzroy in Melbourne are opposing building "AI factories" in their areas. Last month, a developer pulled a proposal to build a data centre near Perth, citing community opposition.

It's a big enough problem that this week, Assistant Minister Andrew Charlton warned that Australia would face a US-style anti-AI backlash unless it kept Australians safe from the harms of AI.

So, why do Australians dislike and distrust this new technology so much?

After all, it's hard to imagine crowds cheering or a pope pontificating about another form of computing like this. (Although I would personally love to hear the bishop of Rome share his thoughts on the most promising approach in quantum computing.)

On paper, AI sounds like it should be popular. Its proponents predict that it will make us all richer, more capable and freer from drudgery thanks to the automation of boring tasks.

One school of thought is that the AI backlash is the predictable and typical response to any technology promoted as being transformative and disruptive. This growing antipathy towards AI is an issue one Australian industry group representing tech companies called for the government to run a public campaign to "improve digital literacy and counter misinformation".

Fears about the workforce

While many Australians may not be as immersed in AI as its makers and promoters, there's a big factor other than what Australians aren't hearing about AI.

It's what they are hearing about it.

Last month, the chief of global bank Standard Chartered said that AI would replace "lower-value human capital". That's human beings.

Microsoft's AI chief said most tasks done by white collar workers will be automated within the next 12-18 months.

Anthropic CEO Dario Amodei predicted 50 per cent of white-collar jobs would be eliminated in five years and push unemployment to 10-20 per cent.

Some of this is AI leaders warning about the consequences of AI replacing human work, but it's also part of the marketing pitch, too.

For all the predictions made by the AI companies and the government about economy-wide productivity boosts or helping businesses cut costs, most working people rely on jobs.

What those people are hearing is that AI might make them more efficient, but it also might make their role redundant. (Evidence of AI affecting Australian employment across the economy remains fairly weak, but it is early days.)

Another issue are the existential risks associated with the technology. Whether it's the fear that a rogue AI will go Skynet and destroy our systems or that it'll be used to create synthetic bioweapons, these potential downsides are another reason to dislike the technology.

There's also the immense amount of hype surrounding AI.

Bill Simpson-Young is a former CSIRO researcher who left to set up the Gradient Institute, an Australian not-for-profit dedicated to promote the safe use of AI.

He reckons it's obvious why Australians don't trust AI: "It's because they've got bullshit detectors."

Simpson-Young says there's a scepticism towards the influence of American tech companies — some of which already have battered reputations because of their social media companies — and a fear about how the tech could further consolidate power among a few.

Then, there's the actual lived experience of many Australians who are already being exposed to AI and its impacts.

Australians are regularly being exposed to AI slop and fake news. They're hearing about school children being abused with non-consensual sexual deepfakes. Their favourite artists are talking about how their content has been ripped off by companies without their knowledge, consent, or compensation. They see the headlines about tech companies paying little tax.

A close up of Sally McManus in the Insiders studio. — ACTU secretary Sally McManus has said of AI: “I don’t trust it. On the other hand, I use it a lot.” (ABC News: Stuart Carnegie)

'I don't trust it'

Crucially, Australians' views are grounded in using the technology. We're among the highest users of AI in the world. Instead of this uptake allaying our fears, our use is feeding it. Surveys done over time show that the more Australians use AI, the more they say they believe the risks outweigh the benefits.

As ACTU secretary Sally McManus told business and technology leaders at the Australian Financial Review's AI Summit earlier this week: "I don't trust it. On the other hand, I use it a lot."

This broad distrust added a rather gloomy note as it came up time and time again with Australian business and tech leaders who were otherwise enthusiastic about the technology.

Charlton's message of caution was delivered at the same event. It was notably distinct from the standard stump politician speech about how the federal government wants to rev up AI investment and usage.

Other members of the government are pushing them to do more. Independent federal MP Kate Chaney put out a discussion paper listing 18 ideas for handling the benefits and risks associated with AI.

On the industry side, the group representing major data centre developers, Data Centres Australia, is now proactively engaging with local councils to try and make a positive case for how this infrastructure should be built in communities.

The growing tech backlash of the last decade has curdled into a febrile environment for AI makers who are trying to change Australian law and use Australian resources while asking Australians to adopt their products.

The AI industry, business and government is now grappling with this issue, wondering why Australians don't trust AI and the people who make it.

Another way of looking at it is: what have they done to earn Australians' trust?

Electric vehicle sales in Australia hit new high in May.

Extract from ABC News

By Lachlan Bennett

Topic:Electric Vehicles

10 hours ago

A woman in a black suit leans on the bonnet of a black car smiling at the camera — Electric Vehicle Council chief executive Julie Delvecchio says continued investment in charging infrastructure is critical to keep up with consumer demand for EVs. (ABC News: Lachlan Bennett)

In short:

One in five new vehicles sold in Australia in May was an EV, a monthly sale record.

EVs, along with hybrids and plug-in hybrids, accounted for nearly half of all vehicles sold last month.

Experts say the war in Iran and petrol price surge helped spur on some consumers but a broader market change is well underway.

Demand for electric vehicles is soaring to new heights in Australia, with EVs representing one in five of all new vehicles sold in May.

Fuel security concerns are also pushing consumers away from petrochemical power, with 46 per cent of all new vehicles sold last month being either an EV, hybrid or plug-in hybrid.

Even Australia's most popular vehicle class, the gas-guzzling SUV, is embracing lower-emissions technology, as sales of petrol and diesel SUVs dropped by 31 per cent and 41 per cent respectively, while plug-in hybrid sales soared 377 per cent.

Chief executive of the Federal Chamber of Automotive Industries Tony Weber said "consumer preferences are changing rapidly" in the SUV segment.

"As the number of EVs on the road continues to grow, charging infrastructure must become more of a priority," he said.

Cheaper Chinese cars arrive on Australian shores

Rising sales of EVs are being driven, in-part, by an influx of cheaper cars from Chinese companies like BYD, which has been able to dominate the market thanks to strong state subsidies, technological development and control of the supply chain.

A large red and white ship sits in a dock as a white car is driven off its ramp — BYD's ship docked in Australia for the first time this week. (ABC News: Lachlan Bennett)

Almost 5,000 of its vehicles arrived in Melbourne this week, the first shipment of almost 30,000 vehicles BYD will send to Australia in the coming months.

Most cars in the first shipment were sold after the war in Iran started, according to chief operating officer Stephen Collins.

"There's no doubt that in March, when the war broke out in the Middle East, there was a significant surge for EVs," Mr Collins said.

"The market's settled back down now but certainly there was strong demand."

Dozens of black and white cars sit next to each other in rows — BYD will ship 30,000 vehicles to Australia in coming months. (ABC News: Lachlan Bennett)

BYD says it has sold 120,000 vehicles, both electric and petrol-powered, since launching in Australia in 2022 and has more than 100 dealerships in its network.

But, like other Chinese companies, BYD has been treated with suspicion by consumers and politicians alike due to persistent cyber-security fears related to the technology built into its vehicles.

Professor Marina Zhang from the Australia-China Relations Institute at the University of Technology in Sydney, said there were "genuine cybersecurity and data-governance issues" related to smart vehicles, however, "these are not unique to Chinese brands".

"The real policy question is how Australia regulates data storage, software access, telematics, procurement standards and auditability across all connected vehicles," Dr Zhang said.

"Chinese-made cars attract extra scrutiny because of geopolitical distrust, but a serious response should avoid broad nationalist suspicion."

A hand hovers over a small digital screen showing a car seat with several option buttons below it — The technology used in some Chinese cars has raised concerns at the highest levels in Australia. (ABC News: Lachlan Bennett)

Australia's spy agency even warned politicians last month not to have sensitive conservations in any type of vehicle.

Will the EV boom last?

The closure of the Strait of Hormuz and subsequent spike in oil prices helped push consumers towards electric vehicles in recent months.

But fuel prices have since dropped significantly thanks to cuts to Australia's fuel tax, the release of strategic reserves and a pivot away from Middle Eastern supplies.

Ms Zhang said the price drops "may weaken the immediate consumer urgency" but would not change the structural trend.

"That shock reminded consumers and policymakers that Australia's transport system remains exposed to imported fuel, shipping choke points and geopolitical crises," she said.

"EV demand may fluctuate month to month, but the energy-security logic has become clearer."

Chief executive of the Electric Vehicle Council, Julie Delvecchio, said BYD's delivery of EVs demonstrated "just how much things are changing in Australia" and called for continued investment in charging infrastructure.

"That's going to require a significant focus from the federal government and also at a state level," Ms Delvecchio said.

Will Australia abandon its favourite car company?

While newer EV companies like BYD are increasing sales in Australia, they trail far behind Australia's favourite car brand, Toyota.

Toyota sells at least twice as many vehicles than every other car brand and has topped Australian sales every year for more than two decades.

But the company, like other established brands, is hedging its bets when it comes to EVs.

A spokesperson said Toyota "has long championed a multi-pathway approach to decarbonisation".

"We believe BEVs (Battery Electric Vehicles) are only one part of a broader mix of solutions to reducing emissions," they said.

A man stands speaking behind a lectern with a graphic showing 120,000 and pictures of cars behind him — BYD Vice-President Liu Xueliang celebrated the company's milestone of selling 120,000 cars in Australia this week in Melbourne. (ABC News: Lachlan Bennett)

Toyota said it had seen increasing demand for EVs and hybrids in 2026, while half of all sales in 2025 were hybrids.

"We believe that being competitive is about the total ownership experience, quality, innovation, warranty, service and strong resale values," the spokesperson said.

"Our brand experience and dealer network are major competitive advantages."

In recent years several car companies including Toyota have scaled back the production of EVs amid sluggish demand in key markets including the US.

Honda recently posted its first annual loss in almost 70 years, with its value written down by $US9 billion ($12.5 billion) and plans to sell only electric or fuel cell vehicles by 2040 cancelled.

Chinese car companies are also facing fierce domestic competition and a reduction of state support.

BYD reported a 55.4 per cent profit drop in the first quarter of this year due to increased competition and slower demand in China.

The domestic challenges could make international markets like Australia ever more important.

Mr Collins said BYD was investing heavily in its product, dealership network and infrastructure in Australia.

"And we'll continue to heavily invest to be a major player in this market," he said.

Ukraine drones hit St Petersburg, while NATO chief makes unannounced Kyiv visit.

Extract from ABC News

Topic:Unrest, Conflict and War

9 hours ago

A plume of black smoke is seen over the port of St. Petersburg, Russia, — A plume of black smoke is seen over the port of St Petersburg. (AP Photo)

In short:

Ukraine has struck an oil export terminal in St Petersburg hours before Russian President Vladimir Putin's annual economic forum got underway.

The governor of the wider Leningrad region said air defences had shot down 59 drones overnight.

What's next?

NATO Secretary General Mark Rutte has arrived in Kyiv for an unannounced trip.

Ukraine has struck an oil export terminal in St Petersburg hours before Russian President Vladimir Putin's annual economic forum got underway.

The attack on St Petersburg, Mr Putin's home city, and the location of his own 'Davos' — a showcase economic forum designed to attract foreign investment — comes as both sides dial up strikes on each other in the more than four-year-old war.

Plumes of black smoke are seen over St.Petersburg's iconic golden dome in Russia — Smoke shrouds the golden dome of Saint Isaac's Cathedral in St Petersburg, Russia. (AP Photo)

A plume of smoke was visible from the historic city centre where an oil export terminal had been hit, and Reuters correspondents reported hearing loud explosions on Wednesday morning.

Ukrainian President Volodymyr Zelenskyy confirmed his drones struck the fuel terminal and said they had also targeted a military facility near what is Russia's second-largest city.

Ukraine's military also confirmed it struck a warship at Russia's Baltic Fleet base which caused a massive fire aboard the Boikiy corvette.

a cloud of smoke rises form a city, flanked by a blue sign advertising a russian economic forum — Banners advertise the St Petersburg International Economic Forum (SPIEF) at the forum's venue. (AFP)

Alexander Beglov, the governor of St Petersburg, said that unspecified "infrastructure objects" had been hit in three different districts of the city, damaging several facilities.

"Clean-up operations are currently underway. Several people have been injured," Mr Beglov said in a statement.

Alexander Drozdenko, governor of the wider Leningrad region, said air defences had shot down 59 drones overnight.

The Kremlin said Russia would keep striking Ukraine systematically in response to such attacks, part of what it has described as a new "paradigm" in the conflict.

The city's Pulkovo airport had to temporarily restrict flights, Russia's aviation watchdog said, and more than 30 flights were delayed or cancelled.

Given the importance of the event to Moscow, the Ukrainian attack is likely to raise questions inside Russia about how effective its own air defence capabilities are, a problem that Ukraine is also grappling with.

The location of the economic forum itself was heavily protected, however, and there was no suggestion that Ukrainian drones had gotten close to the venue.

In a separate incident, Russia accused Ukraine of killing at least seven civilians and injuring 11 more in a drone attack on a passenger bus travelling in a Russian-controlled part of the Donetsk region in eastern Ukraine.

NATO chief's surprise Kyiv visit

NATO Secretary General Mark Rutte arrived in Kyiv on Wednesday, local time, for an unannounced trip, after a series of large-scale fatal Russian attacks on the Ukrainian capital.

President Volodymyr Zelensky, who is expected to meet with Rutte, has been appealing to members of the defence bloc for help protecting Ukraine from Russian ballistic missile attacks.

NATO Rutte Ukraine Zelenskyy — Mark Rutte during a joint news conference with Volodymyr Zelenskyy during an earlier visit in February. File image. (AP Photo: Sergei Grits)

The visit was announced by Ukraine's national railway operator on the social media platform Telegram.

"Today at the Kyiv railway station, we are gladly welcoming NATO Secretary General Mark Rutte," Ukrzaliznytsia wrote alongside images of the NATO chief on the platform.

"This visit is extremely important, just like all the previous ones, because it is a gesture of solidarity and support from the Alliance for our country."

The post was later deleted after the photos were widely circulated.

The visit comes after, earlier this week, Russia launched hundreds of drones and dozens of missiles against Kyiv and other Ukrainian cities, killing at least 22 civilians and wounding 138 others.

Putin has escalated Moscow's aerial campaign in recent weeks in an apparent bid to take advantage of Ukraine's shortage of US-made air defence systems and persuade an increasingly pessimistic audience at home that Moscow is prevailing in the four-year-old war.

On Wednesday, Ukrainian local officials from the Donetsk region said three civilians were killed by Russian attacks on the frontline city of Kramatorsk.

Reuters / AFP

AI may be tightening jobs market, but some roles could see stronger demand.

Extract from ABC News

By national work reporter Bronwyn Herbert

Topic:AI

4 hours ago

A woman in a white shirt and long hair looks at camera. — Lisa Harmer lost her job in communications and marketing and says AI has reshaped her job prospects. (ABC News: Billy Cooper)

In short:

A new economic report by consultancy firm Deloitte says the AI "winners" will be organisations that combine human and machine strengths, with recruiters saying human judgement will still be key.

Deloitte says AI is shifting the job market, not necessarily through cuts but role transformations.

What's next?

It says employment is still growing, but hiring is starting to slow down as a result of AI.

A new Deloitte report has marked 2026 "the year of AI" and said the real "winners" will be organisations that thoughtfully combine human and machine strengths.

The quarterly employment forecast from the major consultancy firm suggests AI is reshaping the labour market, but not necessarily through job losses.

While 82 occupations were identified as likely to be disrupted by AI, there were also several "AI-enhanced" occupations, predicted to see a stronger demand when combined with AI, including leaders, legislators and life scientists.

Deloitte Access Economics partner David Rumbens says occupations where human skills remained central were more likely to benefit.

A man in a blue shirt and grey suit smiles at camera. — David Rumbens says jobs where human skills remain central will benefit from AI. (Supplied)

"Where AI complements skills like judgement, creativity and empathy, we may actually see stronger demand for those workers,"

he said.

"That includes roles like CEOs, teachers and nurses, where AI can boost productivity, but the human element is still critical."

Recruitment specialist Evelina Samuels agreed that the current labour market was seeing a job transformation.

"What were once highly operational administration roles are now far more analytical," she said.

A woman in a light pink blazer and jeans sits cross legged on a couch. — Evelina Samuels says workers should work with AI and not against it. (Supplied)

"Junior positions are being redesigned into 'people analytics' roles, focused on interpreting the data generated by AI doing the heavy lifting."

Ms Samuels said recent graduates and workers should focus on building capability that worked with AI, not against it.

"The people who will stand out aren't the ones who know every AI tool; they're the ones who can use it thoughtfully and apply judgement," she said.

Report finds AI is slowing rate of hiring

There is still limited evidence of widespread job losses linked directly to AI.

The report found employment was still growing and redundancies remained relatively contained, with economists stressing AI was just one force shaping decisions alongside rising interest rates and broader economic uncertainty.

The analysis points to a growing divide in the employment market, where some roles are expanding while others — particularly white-collar, knowledge-based jobs — are seeing a hiring slow down.

In occupations most exposed to AI, including software programmers, web developers and even librarians, vacancy rates are already declining faster than the broader labour market.

The list of jobs most exposed to AI has also widened. What was once concentrated in clerical and administrative roles now extends into professional and managerial occupations — many requiring higher levels of education and expertise.

The report said even roles that relied heavily on human interaction were not immune, including tour guides and licensed club managers.

Mr Rumbens said the "disrupted" label did not mean the jobs would be eliminated, but that parts of the work might be assisted or streamlined by AI.

"It's not that you don't need that occupation, but … you could have a lower staffing level in some of those occupations going forward," he said.

Productivity gains may not translate into more jobs

Some business leaders are being more direct about where the shift could lead.

Partner of Australian venture capital firm AirTree, Daniel Petrie, told AFR's AI summit this week that while companies might see productivity gains, it would not necessarily translate into more jobs.

"We pretend that we're going to get this massive productivity gain, and everyone will be employed the same. That's just not true," he said.

Others struck a similar tone. Telstra CEO Vicki Brady warned the company was likely to be smaller by the end of the decade, while Commonwealth Bank chief executive Matt Comyn said: "Not every role we have today will be preserved."

A woman on her laptop. — Lisa Harmer led the integration of AI into workflows before being made redundant. (ABC News: Billy Cooper)

Lisa Harmer, a former senior communications and marketing professional, is a big believer in AI, leading the integration of it into her team's workflow throughout 2025.

Then, earlier this year, she was unexpectedly swept up in a company restructure, with her senior strategic role being made redundant.

Her position was replaced by a lower-level role, which she ultimately declined.

"It came as a massive shock. I spent a large part of 2025 reassuring my team that AI wasn't going to come for their jobs," she said.

"I still don't really believe that it came for mine, but I do know it has affected many others in my industry.

"Now I'm competing with them for the same roles."

Ms Samuels, managing director of specialist HR firm Samuels Donegan, said at the senior end of employment, there was pressure emerging, with many organisations downgrading high-paying executive roles — often in the $500,000 range — into mid-level positions closer to $250,000 as they cut costs amid economic uncertainty.

A woman in a white top and brown pants sits at her kitchen bench and looks at a laptop. — Lisa Harmer remains an advocate for AI, using it daily in her own job search. (ABC News: Billy Cooper)

The result is a glut of experienced candidates in the market, competing for fewer roles.

Despite the challenges, Ms Harmer remained an advocate for AI, using it daily in her own job search.

But she argued the most valuable skills — strategy, judgement, and relationship-building — remained distinctly human.

"I'd love to work with an organisation that needs support implementing AI," she said.

"Knowing where it adds value and where we absolutely shouldn't replace people with a bot."