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Questioning the alarm: AI job loss predictions are often overstated and Labor can adapt

Published July 28, 2026 at 9:02 PM UTC

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Not everyone is convinced that AI automation will deal a crippling blow to Labor's electoral fortunes. Technology economist Mark Latham from the University of Technology Sydney argues that predictions of massive job losses have consistently been wrong. 'Every previous wave of automation — from the steam engine to the internet — has created more jobs than it destroyed,' he says. He also notes that AI is likely to augment many roles rather than replace them entirely, especially in sectors like healthcare and education where human interaction is critical. A report by the Business Council of Australia suggests that new jobs in AI management, maintenance, and ethics could offset losses. Political strategist Jenny Robertson cautions against treating this as a done deal. 'Labor has historically been good at reinventing its policy platform. They can champion retraining, invest in new industries, and even tax automation to fund social programs. Voters are not stupid — they know change is coming and expect politicians to manage it.' She adds that One Nation's rise was fueled by multiple factors, not just job losses. The government's current AI review could lead to targeted support that blunts the political impact. In this view, the real danger would be if Labor does nothing, not that automation is unstoppable.