The demand for AI related skills in job ads have more than tripled. But before you start panicking - this doesn’t automatically mean that AI is taking over
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A few years ago, the idea of AI taking your job felt like something out of a sci-fi movie (remember I,Robot?!)
Now? AI is in your inbox, your Instagram feed… and somehow even your mum’s speaking about it.
Since ChatGPT’s launch, the demand for AI related skills in job ads have more than tripled. But before you start panicking - this doesn’t automatically mean that AI is taking over your job.
When you actually look at the data… the story is a lot less dramatic.
Since late 2022, the mean labour productivity in G7 countries (Canada, France, Germany, Italy, Japan, the UK and US) has been trending downwards.
What does this mean?
In simple terms, productivity measures how much output is produced for each unit of input (hours worked). It’s one of the biggest signals to watch when measuring AI’s impact.
If AI was already replacing workers at scale, we’d expect to see productivity surge - meaning companies are producing more output with fewer people. But so far, that kind of jump just isn’t showing up in the data.
Australia’s labour conditions are similar to the G7 countries. Rather than a productivity jump, we’re actually seeing productivity slow down.
Big companies, both globally and locally, have been trimming roles as they invest heavily in AI. But the reality is, most of these layoffs are concentrated in the tech sector.
Even then, the layoffs are often tied to cost-cutting, post-pandemic over-hiring, or shifting business strategies - not AI replacing workers overnight.
Earlier this year, Australian tech company, Atlassian, let go of 1,600 workers. The CEO stated that AI “change[s] the mix of skills we need…[and] the number of roles required in certain areas”.
So the growing adoption of AI has been less about ‘robots taking jobs’ and more ‘companies restructuring for the AI era.’
Despite popular belief that AI has replaced the need for entry-level roles, youth unemployment has not meaningfully changed since the introduction of AI.
In Australia, youth unemployment sits around 10% (Feb 2026) which is more than double the overall unemployment rate of 4.2% (Feb 2026).
Instead of AI, factors like a slowing economy, less job creation and political uncertainty are more likely to explain the consistent elevated levels of youth unemployment.
In fact, Australia’s overall unemployment rate is sitting at a historic low. So unless you work in tech, the reason it might be hard to find work right now can’t be blamed on AI (at least not fully!)
AI is clearly changing how we work, but it’s not leading to widespread job replacement, at least not yet.
The real challenge right now is separating what’s actually happening from what’s being hyped up in headlines.
So instead of trying to predict exactly how AI will play out as an employee, you can position yourself to capture the opportunities that come with it as an investor.
Schroder Global Equity Alpha Fund is designed to navigate evolving trends like AI as they unfold, identifying companies that are benefiting from these shifts rather than being disrupted by them
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