ACS report urges action on digital skills for AUD $134bn growth

ACS has released its 2025 Digital Pulse report, which includes a ten-point plan to address Australia's digital skills gap and identifies significant opportunities for economic growth.

The newly published report is based on a national survey involving 300 Australian C-level executives and 1,200 workers, analysing the impact of digital technology in the workplace and the existing challenges posed by a shortage of digital skills.

According to the report, digital technology currently contributes nearly AUD $134 billion to the Australian economy and underpins more than a million jobs. Use of digital skills has become standard across much of the workforce, with the average Australian worker now spending almost three hours per day on digital tasks, representing 39% of their working time.

Skills gap findings

The survey found that widespread digital skills gaps are having a tangible impact across Australian businesses. It is estimated that approximately 150,000 enterprises may currently be experiencing significant or severe digital skills gaps, limiting their competitiveness in both domestic and international markets.

ACS Chief Executive Officer Josh Griggs addressed the implications of these findings, emphasising the broad importance of digital literacy at all organisational levels.

"Digital skills are the foundation of Australia's economic future. To compete globally, we need to ensure every worker, from frontline staff to the executive suite, has the capabilities to work with and lead digital transformation. "If we close these gaps, Australia stands to unlock billions in economic growth, improve cyber resilience, and position itself as a global tech leader," Mr Griggs said. "Our plan is not just about fixing today's problems, it's about creating a future-ready nation," said ACS Chief Executive Officer Josh Griggs.

Ten-point action plan

The report recommends a ten-point national action plan, chief among them the development of a Sovereign AI Strategy to coordinate investment, regulatory approaches, and talent cultivation in artificial intelligence. The report suggests this strategy would facilitate long-term vision and align national capabilities.

Other proposals include formulating a broader innovation strategy to encourage local entrepreneurship, enhancing government co-investment in Australian scaleups (particularly supporting diverse founders), and providing greater incentives for research and development in AI and technology adoption.

The report also highlights the need for C-suite executives to assess their digital literacy through a digital skills health check. Research found that nearly half of senior leaders only possess basic capabilities in at least one critical area, including digital project assessment. The recommendation is that organisational planning incorporate a three-part digital skills health check to inform business strategy and governance.

Cybersecurity workforce development is another focus, as the report estimates cyber attacks cost the economy AUD $63 billion annually and highlights a shortfall of 54,000 cybersecurity professionals needed by 2030. The authors call for more entry-level roles and career pathways to address this demand, as current positions often require prior experience.

Training frameworks and pathways

The action plan supports the fast-tracking of a national skills taxonomy, currently under development by Jobs and Skills Australia, aligning it with international standards such as the Skills Framework for the Information Age. This would improve the ability of organisations and individuals to identify and address digital skills gaps as technology evolves.

Another point addresses the reliance on university degrees for technology roles, despite research showing strong trust in industry certifications and vocational qualifications among executives. With 88% of job ads currently requiring a degree, the report advocates for a national shift, citing the NSW Digital Skills and Workforce Compact which sets a target of 20% of entry-level tech hires from alternative pathways by 2030.

The proposed introduction of "earn while you learn" schemes is intended to address barriers faced by mid-career workers in upskilling, suggesting shared wage subsidies between businesses and government to support training participation during employment.

Additionally, the plan recommends that the government invest in developing a sovereign system layer for the public sector to facilitate safe deployment and usability of AI within Australian contexts, including improvements to public-facing digital services.

Report's ongoing role

The Digital Pulse report is intended as a reference point for policymakers, businesses, and educational institutions involved in shaping workforce development, technology governance, and economic growth strategies for Australia's digital economy.