Australia has a unique opportunity to be a leader in the global AI economy with skills development treated as a national economic imperative, according to one of the government’s Jobs and Skills Councils.
Future Skills Organisation (FSO) public policy lead Ronald Jackson said the key themes emerging from last week’s Economic Reform Roundtable sparked important discussions and he welcomed the inclusion of AI and skills development, reflecting growing momentum towards national action.
“What is needed now is recognition that skilling the economy during this AI-driven transformation is a national imperative,” Mr Jackson said. “With coordinated and focused strategic leadership, we have the opportunity to unlock the full potential of our workforce and position Australia for long-term success.”
Mr Jackson said that Australia already has the research and frameworks required for action, and that it is now time to deliver.
“Nationally coordinated actions on skills development are essential to support Australia’s transition to AI and clean energy. This approach will ensure workers are not left to navigate change by chance and that new labour market entrants have the skills needed to succeed in the evolving economy.”
Mr Jackson said it was encouraging that Skills ministers, in their communique following Friday’s Skills and Workforce Ministerial Council meeting, recognised that “collaboration across the tertiary sector – with industry, business and advocacy partners – will be essential to ensure every Australian can access the skills they need, whether they’re starting out, changing careers, or upskilling for the future.”
FSO also welcomed Treasurer Jim Chalmers’ comments, immediately after the Economic Reform Roundtable, noting there was “… a lot of appetite to do more work on Jobs and Skills Councils.”
FSO director for strategy and planning Tim Burt said the conversation must shift from treating skills solely as a workplace issue to seeing the issue as core to productivity, mobility, resilience, and as economic participation for all.
“We’ve been advocating for a skills-first approach – training that is modular, flexible, and responsive rather than bound to rigid occupation-based frameworks,” Mr Burt said.
“Industry is telling us this is what’s needed: training aligned to real workforce demand, not just to qualifications.”
He added that better recognition of international skills in the domestic setting, and improved tools for recognising the existing skills of migrants in the domestic workforce would also help.
Both leaders underscored the importance of generalist skills – critical thinking, communication, problem-solving – as the foundation for adapting to structural change.
“Analytical and interpersonal skills are essential,” Mr Burt said. “They allow workers to remain relevant and competitive, even as AI reshapes specific tasks and roles.”
Mr Jackson agreed, saying that qualifications must be built around agreed learning outcomes that link directly to what industry needs.
AI is changing the way we work. Australia needs a labour market where businesses can find skilled workers and people have the right skills for new jobs. This means matching workers to the best jobs, and helping the economy grow, especially as AI and clean energy change the future.
“The focus must be on equipping people with both the specialist and generalist skills required to be resilient and adaptable in a fast-changing economy,” Mr Jackson said.
The pair welcomed the Treasurer’s call to accelerate the National AI Capability Plan.
“Implementing the skills recommendations in the recent Jobs and Skills Australia Gen AI Workforce Capacity Study is a quick win,” Mr Burt said. “But the bigger priority is mobilising the entire skills system to lift AI literacy across the workforce and the wider community.”
Mr Burt pointed to FSO’s Skills Accelerator-AI initiative – bringing together industry and the training sector to support upskilling for learners and 30,000 VET educators and administrators in AI – as an example of how lifelong learning can be embedded at scale.
“We’re not just talking about today’s workforce, but the five million learners coming through the VET system every year,” Mr Burt said.
Both say that Australia has a narrow window to act decisively.
“There’s never been a better time to act,” Mr Jackson said. “With momentum building, nationally led, collaborative action can ensure our workforce and economy are ready for the age of AI.
“Australia’s vocational education and training system is uniquely placed to lead the way at scale by equipping learners with practical AI skills, supporting educators, and connecting industry with training to help build a workforce ready to thrive in a fast-changing world.”
This article was produced by InnovationAus.com in partnership with Future Skills Organisation.
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