AI reshapes ANZ jobs as staff turn to shadow tools

Snowflake has published research suggesting artificial intelligence is reshaping workforces in Australia and New Zealand through both job creation and job losses, with a net tilt towards hiring.

A survey of business and technology leaders found 74% of organisations in Australia and New Zealand reported AI-driven job creation, while 50% reported AI-driven job loss. Some organisations experienced both outcomes at the same time.

In an Australia-only breakout shared with the regional results, 17% of local respondents said AI had eliminated roles, tying with the UK for the highest reported job loss among surveyed markets. In the same dataset, 41% of Australian organisations said AI had created roles, and 33% reported both job creation and job loss linked to AI.

Snowflake commissioned the research with Omdia by Informa TechTarget. The global report, The ROI of Gen AI and Agents, surveyed 2,050 business and technology leaders across 10 countries who influence their organisations' AI purchasing decisions.

Workforce shifts

The report also indicates where organisations expect job losses as AI changes operating models. Globally, respondents said reductions were most common in entry-level roles and middle management, at 63% and 46% respectively.

Glenn McPherson, Snowflake's regional vice president for Australia, said the local results show AI adoption involves trade-offs while still prompting new hiring in many organisations.

"We are starting to see the impacts of AI across organisations in the region, and while job losses are always hard to come to terms with, the amount of jobs created across the region is a welcome surprise and something that should hopefully help to quell some of the fears emerging around AI," McPherson said.

Shadow tools

Alongside workforce impacts, the report highlights widespread use of generative AI tools outside formal corporate approval. Australia and New Zealand workers were the most likely among surveyed regions to use non-approved tools for work, with 67% reporting they had done so, compared with 57% globally.

Respondents cited several reasons for using non-approved tools. Almost half (49%) said approval to use new tools takes too long or is frequently rejected, while 48% said approved tools lacked specific features they needed. Another 36% said non-approved tools helped them work faster, and 27% said they were unaware of any policy against using them.

McPherson said the findings show workers are pressing ahead with tools that fit their day-to-day tasks, even when corporate processes lag behind demand.

"What the data also reveal is that people want to use it, and they're willing to use the tools that make sense to their roles. The fears around AI are seemingly outweighed by the benefits it's providing to organisations and individuals, though the region has a lot it can do to keep up with the rest of the world," he said.

ROI questions

The research points to a tension in the region: reported gen AI adoption broadly tracks the wider market, but respondents in Australia and New Zealand were less likely than global peers to report positive impacts.

On operational efficiency, 83% of respondents in Australia and New Zealand reported improvement versus 88% globally. On talent management, the local figure was 65% versus 74% globally. On risk management, it was 69% versus 78% globally.

The report also indicates lower reported use of gen AI in IT operations in Australia and New Zealand. It found 54% of respondents said their IT departments are using gen AI today, compared with 63% globally. Within IT teams, 48% said gen AI is helping with log analysis and anomaly detection, versus 58% globally.

Data readiness

Data preparation and governance remain prominent hurdles. In Australia and New Zealand, 55% of respondents said data quality is a challenge when curating data for AI systems; Snowflake said this was the highest level of concern among the regions covered in the study.

At the same time, the survey suggests the region ranks relatively high on unstructured data readiness for AI. Among the 10 markets surveyed, India led with 14% of respondents saying most of their unstructured data is AI-ready. Australia and New Zealand followed at 12%, ahead of Canada at 10%. The United States was at 8%, and the global average was 7%.

Global uptake

Across the international sample, the report argues AI is moving from pilots into production, with early adopters reporting measurable returns. It found 92% of early AI adopters reported a positive return on investment.

Respondents said businesses plan to allocate 22% of their technology budgets to AI in the coming year, with Australia and New Zealand at 23%.

The survey also describes how AI is used across core functions. It found 62% of IT operations teams report active AI use, followed by data analytics teams at 59%, cybersecurity at 53%, and software development at 50%. Procurement, sales and marketing were among the slowest to adopt AI, with around 30% of each reporting active use.

Adam DeMattia, senior director of research at Omdia by Informa TechTarget, said scaling AI successfully requires strong governance and data management.

"The data shows that AI is delivering tangible returns, but scaling it successfully requires a strong data foundation and governance framework," DeMattia said.