A recent study by recruitment consultancy Robert Walters has identified a major shift in hiring priorities across Australia and New Zealand, underscoring the rising importance of soft skills in response to expanding artificial intelligence (AI) integration. Surveying over 2,000 white-collar professionals, the findings reveal that 96% of respondents now view soft skills as equally or more essential than technical expertise. Notably, 92% of employers reported that they had declined candidates due to inadequate soft skills, indicating a growing emphasis on interpersonal and adaptable qualities.
Shay Peters, CEO of Robert Walters for Australia and New Zealand, attributes this shift in focus to the rapid and widespread adoption of AI across various industries. Peters explained that, as AI evolves, many technical or hard skills traditionally deemed essential may soon be replaced by automated systems. “The growth of AI has been remarkable in recent years, and I predict that it will eventually replace almost all hard skills in white-collar industries. This means that soft skills will take centre stage in talent acquisition, as the human touch becomes the distinguishing factor,” Peters stated. Indeed, as AI increasingly shapes Australia’s employment landscape, the value of distinctively human capabilities is becoming more pronounced.
Australia has recently been identified as a leading user of AI, with over 2.2 million searches for ChatGPT-related topics each month. Reflecting the high demand for AI technology, Australian employers are now placing greater emphasis on qualities such as communication, negotiation, and problem-solving skills. Recruitment professionals report that companies are willing to offer higher salaries to candidates who demonstrate strength in these areas. Peters remarked that clients are looking not only for candidates who can integrate AI effectively into their roles but also for those who can work harmoniously alongside AI solutions to enhance workflows. “Clients are now placing greater importance on qualities such as effective communication, negotiation, and problem-solving. These attributes will set candidates apart from their peers as we continue to see AI replace hard skills,” he added.
The generational advantage of younger workers, particularly Generation Z, has also emerged as a factor in adapting to these changing workplace dynamics. According to Peters, Gen Z workers have a notable advantage in AI-driven environments due to their familiarity with technology, which enables them to integrate AI tools into their daily work seamlessly. This adaptability positions Gen Z as an appealing option for employers seeking talent that can thrive within AI-augmented roles.
As AI capabilities expand, traditional soft skills are being redefined to encompass skills like teamwork, communication, and critical thinking, which are proving indispensable in roles where automation has begun to replace technical tasks. A recent report from Indeed further highlights this trend, revealing that over half of surveyed employers consider communication to be the most valuable skill for future success, with teamwork, adaptability, and problem-solving closely following. These insights underscore a growing consensus that soft skills are now integral to career advancement in AI-influenced sectors.
Peters also emphasized the importance of developing soft skills as AI continues to reshape job requirements and workplace expectations. “In today’s highly competitive job market, where countless highly skilled individuals are vying for positions, your soft skills will be the ultimate differentiator. As AI inevitably replaces hard skills in white-collar industries, your soft skills will be all you have left,” Peters said, urging candidates to focus on refining these interpersonal skills to improve their employability as AI takes on a larger role in the professional space.
Parallel developments in New Zealand’s financial sector further illustrate the expanding role of AI in the workplace. In a recent study, New Zealand’s Financial Markets Authority (FMA) examined the implications of AI adoption within the nation’s financial services industry, specifically in sectors like insurance, banking, and asset management. Stuart Johnson, chief economist for the FMA, noted that while AI offers considerable advantages, there is a need for a cautious, balanced approach to its implementation. “Our findings emphasize the need for a balanced approach to harness AI’s benefits while addressing governance and risk concerns,” he explained.
In the context of customer-facing roles, research from UserTesting underscores that human advisors remain essential, despite AI’s growing adoption in the insurance sector. A survey conducted across Australia, the US, and the UK indicated that while AI tools can assist in policy comparison and provide useful insights, many Australians continue to prefer personal guidance. The survey found that 25% of Australian respondents viewed AI as beneficial for understanding complex insurance information, and 45% believed AI could help with policy comparisons. This data suggests that while AI will likely become more useful, human advisors retain a valued role, especially in customer interactions where personal engagement is appreciated.
As AI continues to transform workplace demands in Australia and New Zealand, organizations are increasingly prioritizing soft skills as essential assets. As technical skills become more easily automated, qualities such as communication, adaptability, and problem-solving are emerging as key differentiators in the job market, reshaping both employer expectations and employee career development strategies in the era of AI.
