The Risks of Doing Nothing
We call on the Australian Government and all political parties to develop a national AI transition plan before disruption accelerates.
AI can improve Australia, but the transition must be managed so workers, students, families, mortgage holders, and communities do not bear an unfair cost.
1. Jobs May Disappear and Wages Fall
Businesses are under pressure to use AI to reduce costs, automate tasks and do more with fewer people.
Without proactive safeguards by the government, hundreds of thousands of Australian workers could face fewer opportunities, weaker job security and stagnate wage growth. Should this translate into high unemployment, then wages for many workers may start to fall.
2. Household Energy Prices Soar
AI data centres and high-performance computing require large and growing amounts of electricity.
Without proper planning, grid investment and cost controls, AI infrastructure could place additional pressure on household energy costs with little benefits to local communities.
For instance, the Firmus AI Factory planned for Bell Bay, Tasmania will use 15% of the state's current energy capacity (the equivalent power of 200,000 households) but only employ 10 workers per shift.
3. Young Australians Lose their First Step into Work
Australia has a large pipeline of students preparing to enter the workforce through senior secondary school, higher education and vocational training. In 2025, this was approximately 2.2 million Australian students studying post-year 10:
500,000 in years 11 and 12
1,000,000 in university and higher education
700,000 million in TAFE
These students need entry-level roles, apprenticeships, graduate pathways and practical work experience to build careers.
If AI reduces junior roles, automates routine work and slows hiring, young Australians may lose the first step into meaningful employment.
A responsible AI transition must protect opportunities for the next generation.
Any one of these risks can change our society
Sources
Firmus AI factory:
26,000 Nvidia chips, 15pc of Tasmania’s power: Does this AI factory add up?, Australian Financial Review, 6 June 2026
Australian students studying post year 10 in 2025:
ABS School data, NCVER VET/TAFE data