Artificial Intelligence (AI) has exploded into the workplace over the past 18 months. From generative tools like ChatGPT to automation in banking, logistics, healthcare, and retail, AI is no longer a niche technology, it’s already mainstream.
But here’s the challenge: with all its potential, AI is also creating deep uncertainty. Companies are struggling to work out where it fits, how fast it will evolve, and what it means for their workforce. And that uncertainty is slowing down, or at least reshaping, hiring decisions, not just for tech roles, but across the board.
The Confidence Gap: Why Businesses Are Hesitating
AI is new and fast-moving
Companies don’t want to hire into areas that may soon be automated, or where today’s skills might become redundant tomorrow.It’s not clear where AI will create value
A retail chain may wonder whether to invest in customer analytics tools or warehouse robotics. A bank may question whether AI should sit in customer service, fraud detection, or lending. That lack of clarity spills directly into hiring caution.Short term disruption vs long term gain
Businesses know AI can boost efficiency, but they also fear short-term disruption to staff morale, workflows, and compliance. Many hesitate to commit to long-term hires when their operating model may need a rethink in 12–24 months.Impact on non-technical roles
AI isn’t only about coders and data scientists. It’s affecting administrative staff, call centres, HR, and marketing. That makes hiring decisions more complex because even “safe” roles may change shape.
The Case of CBA: A Warning Signal
A very public example came earlier this year when the Commonwealth Bank of Australia (CBA) made hundreds of call centre staff redundant, only to start re-hiring them later. The bank had trialled AI-driven customer service tools, but soon realised the human element was still essential in many situations.
For staff, the message was confusing and unsettling. For the broader market, it was a signal - if one of the biggest, most sophisticated banks in the country can misjudge the balance between automation and people, then uncertainty truly exists everywhere.
This back and forth undermines confidence, not only for employees unsure of job security, but also for businesses trying to work out whether to invest in people or technology.
Beyond Tech: The Ripple Effect Across All Sectors
Healthcare: AI-driven imaging and triage tools may reduce reliance on some admin roles, while increasing demand for AI governance and compliance officers.
Manufacturing: Robotics and AI quality-control systems create uncertainty about production-line staffing needs.
Professional Services: Lawyers, accountants, and consultants are experimenting with AI to streamline research and drafting, leading some firms to slow graduate hiring while they assess productivity impacts.
Retail & Customer Service: Chatbots and recommendation engines reduce demand for entry-level staff, but companies also find that automation can’t handle nuance—meaning they yo-yo between cutting and rehiring.
The takeaway? AI is blurring the lines on what roles are “safe,” making workforce planning a guessing game.
How Businesses Can Respond With Confidence
Adopt a “test and learn” approach
Pilot AI in small parts of the business before making big hiring decisions. This reduces the risk of over-correcting (as seen in CBA’s call centre).Hire adaptable talent, not fixed roles
Look for people with cross-functional skills, employees who can flex across AI-enabled and traditional processes as business needs shift.Reskill rather than replace
Investing in training existing staff reduces both costs and reputational risks compared to large-scale layoffs and re-hires.Be transparent with staff
Explain where AI is being trialled, what it means for roles, and how people can grow alongside it. Uncertainty erodes confidence, but transparency helps rebuild it.Focus on human–AI balance
The CBA example shows that technology can’t always replace people. Companies need to design hybrid models where AI handles scale, and humans handle complexity and empathy.
AI is transforming the way we work, but its rapid rise is also shaking confidence in hiring. Australian companies across all sectors, not just tech, are hesitating, experimenting, or even reversing hiring decisions as they try to navigate an unclear future.
The lesson is clear: confidence comes not from ignoring AI or rushing headlong into it, but from taking deliberate, transparent, and flexible steps. Businesses that balance experimentation with thoughtful workforce planning will not only protect themselves from costly mistakes, but also create workplaces where both people and AI can thrive.