Younger Australians can lead the way as AI waves roll out

Australia’s large corporations have fallen behind the rest of the developed world in embracing artificial intelligence.

Combining that with our industrial relations legislation, which was designed for a different era, there will be difficulties for many companies as they try to catch up with the rest of the world.

However, despite the delay, AI is on the horizon, so we will devote this opinion piece to preparing our young people to carve out a career in this enhanced computer era. This environment will be very different from that of their parents and grandparents.

In addition, the large number of Australians who face retrenchment as AI is adopted in many workplaces also need to look at ways of adapting.

However, before outlining the personal strategies required, let’s consider why Australian companies fell behind the rest of the world and examine the three waves of AI that must be understood by all those seeking to leverage AI.

In our view, a large proportion of our big corporations have such tremendous market power that they don’t have to follow the world. And their large bureaucracies gave millions of reasons to hold back, including advocating for not making decisions when there were industrial relations laws designed to make it frustrating for larger enterprises to operate in the modern world.

There are three waves in the AI revolution.

In the first wave, enterprises enhance their existing procedures to operate more efficiently and improve productivity.

Large companies around the world have now moved to Wave Two, whereas many Australian companies are just starting at Wave One.

Wave two lasts for at least one or two years as enterprises substantially change the way they undertake existing activities. For example, a bank approving business loans will apply AI to applications and will also use it to monitor the cash flow and performance of their borrowing customers.

Under the current systems, there is some automation in approval, but monitoring the trading progress of business banking clients is very labour-intensive. Being able to monitor the trading of a borrowing enterprise will encourage banks to lend more to individual borrowers.

Call centres operate with AI. Similarly, in a major factory, AI can be used to improve the way activities are carried out significantly.

AI software revolutionises the speed and reduces labour intensity. Both wave one and wave two will substantially lower labour content, improve efficiency, and boost profits if companies hold their current margins. Many of the high Wall Street price-to-earnings ratios are achieved because of the expectation that AI will deliver significantly higher profits. However, that is not necessarily the case if there is a downturn and margins have to be reduced. Long-term investors need to value shares based on the likely gains from AI.

In the third wave, we will see enterprises utilise AI to integrate with robotic engineering and create enterprise power, enabling corporations to enter new markets.

Fascinatingly, young tradies are already using AI to put detail into quotes that previously would have required them to work into the early hours of the morning to achieve the detail a particular customer might need.

As we have previously discussed, many of the steps on the career ladder that young people use to begin their careers will be eliminated by AI. Substantial changes will be required in universities, tertiary institutions, and schools to prepare students for this new environment.

However, many young people will decide not to pursue university courses and opt for vocational training instead. Nevertheless, if they are to own a business, they will need knowledge of AI.

An essential first step is to learn to approach problems in a way that allows for effective solutions and look for opportunities that are hidden within them. In the AI world, everyone will need to embrace the concept of continuous education, as AI is constantly evolving.

The core purpose of these new courses must be to make students “AI-ready” so that they know how it works and how to apply it. Because our large companies and education systems have not fully embraced AI, there is widespread ignorance about its implications.

Once the base knowledge is acquired, those who are “AI-ready” must approach problems with AI as a tool.

These are qualities that older managers will also need to develop. Many will find it too challenging, so providing gaps for young people. For existing employees who are vulnerable, look around the enterprise for areas that are not being impacted. If these areas are not available, then adopt the same procedures as those for new employees entering the business. Existing employees have the advantage of knowing what the company does and its customers.

Start learning how to operate in an AI world. Because the AI revolution is on the same scale as the steam, electricity, and computer revolutions, the above guide is merely a starting point.