Exploring the Impact of AI on the Transformation of Labour Markets in Advanced Economies: Insights from Australia

Artificial intelligence (AI) is reshaping global labour markets, yet adoption remains uneven across sectors. This article employs a sociotechnical systems perspective to examine how national policy and institutional barriers shape AI implementation in advanced economies by examining the case of Australia. The study investigates the tension between technological potential and institutional readiness, focusing on Australia’s unique policy, a model prioritising innovation and voluntary standards over prescriptive regulation. Comparing the Finance and Administrative & Support Services sectors, findings reveal a significant divergence: while the Finance sector achieves role restructuring through task-level augmentation, the Administrative & Support Services sector faces challenges due to the concentration of automation risk in feminised, lower-skilled and entry-level administrative roles specific to the sector. The article concludes with contributions and limitations of the study.