Australia’s job market is shifting under the weight of artificial intelligence, as recent reversals and new studies highlight both the risks and opportunities facing workers and employers alike. The Commonwealth Bank of Australia (CBA), the country’s largest bank, recently walked back a controversial decision to replace 45 customer service jobs with AI, offering affected workers the option to stay or take a voluntary buyout instead. The move comes amid a broader debate about how AI is transforming entry-level work and the future of employment across the nation.
The saga began in July 2025, when CBA informed the Finance Sector Union (FSU) that its AI-powered customer service agents had reduced call volumes for human employees, implying that technology could efficiently replace certain roles. The union, however, disputed these claims, arguing that the impact on workloads and job security was far more complex. After mounting pressure from employees and union representatives—who even brought the dispute before Australia’s Fair Work Commission—the bank reversed its decision by late August, according to a press release cited by multiple outlets.
For the FSU, the reversal was a “massive win for workers,” demonstrating the power of collective action. Yet, Julia Angrisano, the union’s national secretary, struck a cautious note: “This is no victory lap. The fight to stop Australia’s biggest bank replacing people in secure jobs with machines is far from over.” The FSU continues to collect reports from its members on the impact of offshoring, automation, and AI, signaling that the debate is far from settled.
Australia’s union movement, while diminished from its peak—union membership was 40% in 1992—remains relatively robust compared to the United States, with 13.1% of workers belonging to a union as of August 2024. The FSU’s advocacy is not anti-technology: “Workers want a tech savvy bank, but they expect to be part of the change, not replaced by it,” Angrisano insisted. The union is pushing for investment in training and support so that employees can transition into new, AI-leveraged roles, rather than being left behind.
Meanwhile, CBA is hardly backing away from its AI ambitions. The bank recently opened a technology hub in Seattle to attract and train professionals in generative and agentic AI, positioning itself close to tech giants like Anthropic and Amazon Web Services. Earlier in August, CBA also announced a partnership with OpenAI to explore advanced generative AI solutions for scam and fraud detection, as well as personalized customer service. According to the bank, these efforts have already paid dividends, with generative AI credited for significant reductions in customer scam losses, a drop in customer-reported fraud, and a 40% reduction in call center wait times thanks to its AI-powered messaging app.
Australia’s experience is mirrored by global trends. According to a recent study by HR tech company HiBob, conducted in June 2025, nearly 87% of Australian employees believe that AI has already replaced tasks typically assigned to junior staff. The survey, which polled over 2,000 working adults in Australian workplaces, found that three in five respondents (60%) now perceive that recent graduates can leapfrog traditional entry-level roles and move directly into more advanced positions.
Damien Andreasen, vice president for the Asia Pacific and Japan regions at HiBob, sees a silver lining in these changes. “AI is automating routine tasks … but crucially, it’s also elevating the nature of entry-level work, making it more dynamic and skill-intensive for new entrants … companies are rethinking their traditional entry-level responsibilities,” he said. Andreasen believes that the impact of AI on the Australian job market, particularly at the entry level, is “undeniable.” While headlines about graduate redundancies at companies such as EY and Microsoft may seem alarming, he argues that they reflect an evolving landscape rather than a simple story of loss.
In fact, the HiBob study found that 23% of companies are proactively redesigning entry-level roles to be more strategic or creative, rather than eliminating them outright. The integration of AI into the workplace is projected to add a staggering $4.4 trillion in productivity growth from corporate use cases, according to McKinsey. “The result will be more efficient and effective problem solving, enabling innovation that benefits everyone,” the consultancy has noted.
The changes are not limited to the finance sector. Thirty-five percent of Australian employees surveyed by HiBob believe that human resources will benefit from AI’s absorption of routine tasks, and nearly half (47%) think that the finance and accounting sectors stand to gain as well. But with these gains come new expectations: almost half of all Australian workers now say that stronger technical or digital skills are required for entry-level roles. Companies are increasingly seeking out tech-savvy applicants, with 19% prioritizing those with AI literacy, according to HiBob’s findings.
These trends are already having a direct impact on graduate recruitment volumes. Recent events, such as CBA’s initial move to replace over 90 job roles with an AI voice bot system (a decision subsequently reversed), and redundancies issued to graduates at giants like EY and Microsoft, have heightened concerns about AI-fueled job losses. Yet, for some, these changes represent an opportunity for young professionals to engage in more impactful work—strategic, analytical, and creative tasks that require the kind of human judgment AI cannot replicate.
“AI shouldn’t be seen as just taking over tasks; it’s fundamentally changing the very nature of entry-level roles,” Andreasen explained. He envisions a future where these emerging technologies “reimagine early career roles for young professionals” and reveal the “intersection between the human mind and AI.” For Australian graduates, that means bringing modern solutions to the table and working in symbiosis with artificial intelligence.
Of course, not everyone is convinced that the transition will be smooth. As generative AI technologies enter what Gartner calls the “trough of disillusionment”—a period following initial hype when organizations struggle to demonstrate real value—business leaders are under pressure to prove that their AI investments are paying off. Despite an average spend of $1.9 million on generative AI initiatives in 2024, less than 30% of AI leaders report that their CEOs are happy with the returns, according to Gartner’s latest report.
Still, the direction appears set: both businesses and employees will need to adapt, learn to work smarter with AI, and ensure that Australia’s talent can leapfrog into impactful and rewarding careers. As the FSU and CBA’s recent standoff illustrates, the future of work will be shaped not just by technology, but by the people who wield it—and their willingness to fight for a seat at the table.
