AI adoption grows in Australia & New Zealand but skills lag

New survey data shows AI adoption is rising rapidly among workers in Australia and New Zealand, but businesses are struggling to unlock measurable value from the technology.

Dayforce has released findings from its 16th Annual Pulse of Talent report, surveying nearly 1,000 workers in Australia and 520 in New Zealand. The results suggest that while there is high optimism about the potential of artificial intelligence, most organisations are yet to realise tangible benefits. Significant gaps in training and trust persist, hindering progress toward broader business impact.

Workforce training

According to the research, a majority of employees have not received formal AI training. In Australia, 65% of workers said they have not been trained in AI, even as 30% believe developing AI skills is important. In New Zealand, the number of untrained workers is 58%, with only 19% identifying AI upskilling as a priority. Despite this, more than half of companies surveyed (50% in Australia and 52% in New Zealand) currently do not provide any AI training courses.

The report found that 81% of Australians and 71% of New Zealand respondents believe employers should reskill workers whose roles are impacted by AI. However, only 17% of organisations in both countries are actively reskilling staff, and the majority have no programme in place for employees affected by automation. More than one in four workers said they are concerned their skills are becoming obsolete due to AI in the workplace.

Perspectives on AI and job security

When examining attitudes towards the impact of AI, the majority of respondents expressed both optimism and concern about the technology's influence on their careers. Sixty percent of Australian workers and 55% of New Zealand workers said they feel more optimistic about AI's potential in their organisation than they did a year ago. The majority also reported that AI has made their jobs easier (86% in Australia, 75% in New Zealand).

However, 43% of Australians and 48% of New Zealanders believe that AI could result in job losses, while just under a third expect AI to create new roles. The uncertainty is reflected in career sentiment, with 26% in Australia and 29% in New Zealand saying they would have considered a different career if they had known the extent to which AI would affect job security.

Ethical concerns and trust

Ethical implications emerged as an area of concern for many survey participants. Sixty-five percent of Australian workers and 58% in New Zealand said AI presents ethical challenges. At the same time, nearly a quarter of organisations (23% in Australia, 20% in New Zealand) do not have formal policies outlining the use of AI in the workplace.

Trust in AI is notably higher among executives compared to frontline staff. While 77% of Australians and 63% of New Zealanders broadly trust AI tools to provide accurate, data-driven decisions, executives were almost 30% more likely than workers to trust their company's ability to use AI responsibly. This indicates a significant gap in confidence between leadership and other employees.

Executive views

"The Productivity Commission estimated that AI has the potential to add USD $116 billion to Australia's economy over the next decade, via an unprecedented productivity surge," says Rob Husband, Vice President ANZ, Dayforce.

"However, our findings show most businesses are not yet realising its full value. Employees are eager to reskill and take on new opportunities, but without investment in training, transparency, and career mobility, Australia's businesses risk chasing market noise rather than creating lasting impact.

"For Australian and New Zealand businesses to stay ahead of the game, AI is mission critical technology that should sit at the heart of their HR transformation. Ensuring motivated workers are given opportunities to learn, grow and advance is one of the keys to employee satisfaction and retention. With the right adoption of AI in place, organisations will be able to quantify their employees' skills and capabilities, document their goals and generate personalised career development plans. That's good for HR teams and even better for your workforce at large."

Amy Cappellanti-Wolf, Chief People Officer at Dayforce, commented, "For HR leaders, the mandate is clear - infuse AI skills and pathways for your people today or risk being left behind. Employees are eager to grow, but without a clear strategy for training and career mobility, organisations risk creating a two-tier workforce - those driving innovation with AI and those struggling to keep pace."

Commenting on the readiness of businesses across different levels, Carrie Rasmussen, Chief Digital Officer at Dayforce, said, "There's a widening AI confidence gap - executives say they're ready, but managers and frontline employees aren't there yet. Three out of four executives say they're prepared for AI, but that drops to less than one in four on the front lines. The real race isn't just about speed - it's about bringing your workforce with you."

HR and technology for future skills

The findings highlight an urgent need for companies to integrate AI training and upskilling into their workforce strategies. Use of AI in HR automation, internal mobility, and learning and reskilling was reported by a majority of executives (77% for HR automation and 76% for internal mobility in Australia; 66% and 67% respectively in New Zealand).

Despite these early returns, few employers reported strong programmes for reskilling or internal career transitions prompted by AI-driven workplace changes. Nearly 13% of workers in Australia and 14% in New Zealand have already seen their roles evolve due to AI, with a further 40% in Australia and 36% in New Zealand expecting more changes soon.

The report concludes that companies that move beyond early experimentation, focus on reskilling, and foster workforce mobility will be better positioned to achieve lasting value from AI and support long-term business objectives.