Beyond Prompting

Most Australians already use AI in their daily work, yet skills gaps in both general digital skills and AI skills persist. These gaps are particularly pronounced for older employees, who often face greater barriers to adopting new technologies such as AI. This report aims to highlight the generational differences in the use of AI, quantify the opportunity for uplifting AI skills and opportunities for how this upskilling can be done.

While 84% of workers surveyed for this report have used at least one AI tool, only 7% reach advanced literacy, and over half are still beginners. The gap is not just about how often people use AI, but whether they can use it safely, effectively and strategically. AI skills gaps are particularly pronounced for older employees, who often face greater barriers to adopting new technologies such as AI. Younger workers (gen Z and millennials) score higher on technical AI skills than gen X and baby boomers (boomers) but face a distinct risk of overconfidence. Boomers, by contrast, perform relatively better on judgement-based skills but are more hesitant to use AI at all.

The upside of investing in lifting AI literacy is substantial. Workers who lift their literacy from beginner- to advanced-levels see almost $11,000 in higher wages per year. If half of all beginner-level workers improved to intermediate levels, the total dividend would be $18.9 billion. Australian workplaces now have an opportunity to upskill employees where it matters most, with the report exploring what training should be prioritised.