Our Gen AI Transition – Adoption

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    Paper B: Adoption explores adoption among firms, industries and workers, and across the capability spectrum (from adoption to integration to maturity). It includes insights into the conditions that support adoption and presents novel means for collaborative adaptive capacity through Gen AI Personas

    • Adoption and adaptation will determine the labour market impacts of Gen AI, beyond exposure. Adoption is multi-speed in Australia: large firms and the market sector are adopting Gen AI faster.
    • Shadow use (workers adopting Gen AI without formal approval) signals early adoption and bottom-up innovation.
    • Organisations and sectors move along a Spectrum of Digital & AI Capability – from adoption, to integration, to maturity.  

    A spectrum of capability: adoption, integration, maturity

    Firms and sectors are on different paths to maturity and Gen AI adoption depends on: 

    • Their ability to invest in and adopt technology – which frames their productive capacity
    • A range of firm-level capabilities – which underpin digital and AI maturity
    • The skill mix of their workforce – which underlies the use of technology, firm capabilities and dynamic progress. 

    The Study proposes considering firm or organisation-level capabilities along a spectrum: to plan and target different needs for adoption, including enabling factors (leadership, data, skills, governance). 

    We identify Gen AI personas as enablers of capability & adoption: Leaders, change drivers, professionals, enabled workers, affected workers, informed citizens, educators.  

    To understand adoption, we surveyed businesses and ran focus groups to understand Gen AI adoption in Australia. We analysed ASX200 reports, venture capital flows, job profiles, and job ads to uncover what drives adoption – such as, investments in AI, digital infrastructure, and workforce skills. We also modelled different adoption scenarios (simultaneous, non-market lag, augmentation-first) to assess their labour market impacts.  

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    We propose considering firm or organisation-level capabilities along a spectrum: to plan and target different needs for adoption, including enabling factors (leadership, data, skills, governance). 

    We identify Gen AI personas as enablers of capability & adoption: Leaders, change drivers, professionals, enabled workers, affected workers, informed citizens, educators.  

    We also conducted illustrative CGE scenario modelling, looking at adoption at different rates, including simultaneous adoption of automating and augmenting Gen AI, a non-market lag, as well as an augmentation-first scenario, and their labour market implications.