Australian organisations are rapidly deploying artificial intelligence but lack the workforce strategies, talent pipelines and employee benefits structures needed to extract its full value, according to new research from Aon's inaugural Human Capital Trends Study. While 76% of Australian organisations have either fully deployed or are piloting AI - 48% deployed and 28% piloting - only 24% report they can recruit and retain the skills required to support it.
The finding sits within a documented and worsening talent shortage. The Technology Council of Australia projects the country's AI specialist workforce will reach around 85,000 by 2027 against demand of roughly 140,000 - a shortfall of up to 60,000 people, according to recruitment firm Big Wave Digital. LinkedIn's Jobs on the Rise 2026 report lists AI Engineer as the fastest-growing role in Australia, with roughly 150% growth, and AI literacy as the most in-demand skill across the broader job market.
For the insurance sector specifically, the gap is acute. Deloitte's 2026 Australian insurance predictions identified winning the war for scarce digital and AI talent as the critical execution challenge facing insurers, noting that workforce reshaping must include operating model evolution with new decision rights and teams designed around human-AI collaboration rather than legacy processes. Gallagher Bassett's Carrier Perspective 2026 report found that difficulty attracting and retaining skilled employees had risen to the third-ranked challenge for Australian insurers in 2026, up from seventh the previous year. The finance and insurance sector recorded a 65% AI adoption rate in Australia - the second highest of any industry, behind property services at 69%.
Alex Cass, partner and human capital client leader for Australia at Aon, said the pace of AI adoption had outrun the workforce planning needed to make it effective. "Australian organisations are moving quickly to adopt AI, but technology alone is unlikely to deliver better outcomes. What we are seeing is a growing need to align that investment with workforce strategy, particularly in areas like skills, leadership and workforce planning. Organisations that get this balance right are more likely to unlock long-term value from AI," he said.
Despite mounting pressure to automate and digitise, the study found that human capability remains central to organisational performance. Leadership and people management were identified as the single most important workforce capability for future success, ahead of technical skills or AI proficiency. Australian organisations named three workforce priorities for the next three years: accelerating digital transformation in HR processes, strengthening leadership and succession planning, and improving employee engagement and retention.
The findings point to a tension at the heart of Australia's AI push - organisations are investing in technology while simultaneously acknowledging that the human foundations required to leverage it remain underdeveloped. That tension is particularly pronounced in insurance, where AI is being deployed in core control and decision-support functions including risk management, fraud detection and claims automation, but where the talent required to govern, maintain and improve those systems is in short supply.
Beyond skills, the study identified persistent gaps between what employers offer and what workers want. Just 52% of Australian employers provide customised employee benefits, compared with 75% of employees who rate such benefits as important or extremely important. The report noted that structural factors, including Australia's fringe benefits tax environment, continue to shape how employer-provided benefits are delivered and perceived.
Pay transparency emerged as another area requiring attention. Only 13% of Australian organisations described their pay transparency practices as mature or very mature - a figure the report attributed in part to the absence of strong legislative drivers seen in other countries. Meanwhile, 33% reported a high level of HR data maturity, suggesting room to translate existing data into more effective workforce decisions. The Workplace Gender Equality Agency's increasing expectations for large employers to set gender equality targets is likely to drive greater focus on data-driven approaches to pay and workforce planning.
Annette Hang, partner for talent solutions for Australia at Aon, said structured workforce planning would be essential to converting AI investment into results. "Demand for AI capability is increasing, and organisations are focusing on how to attract, develop and retain the right skills. A more structured approach to workforce planning and reskilling can help ensure technology investment is supported by the capabilities needed to deliver meaningful outcomes," she said.
