The Future of Work Downunder

Research evidence excerpt

The Future of Work Downunder

Foundation

July 19, 2026 08:00 PM GMT

Morgan Stanley Australia Limited+MAustralia Macro+ | Asia Pacific Chris Nicol

Equity Strategist

The Future of Work Downunder Chris.Nicol@morganstanley.comChris Read +61 3 9256-8909

Equity Strategist and Australia Economist

Chris.Read@morganstanley.com +61 2 9770-1513

Australia is presenting as a litmus test for how AI is adopted and Isabel Black

its influence on labour force mix, design and outlook. Regulatory EquityIsabel.Black@morganstanley.comStrategist +61 2 9775-2519

focus is increasing and corporate strategy fast evolving. We take Morgan Stanley & Co. International plc+

key insights from global AlphaWise surveys and identify key Rachel Fletcher, Ph.D.

debates for investors. Rachel.Fletcher@morganstanley.com +44 20 7677-4089M

Key Takeaways

We draw on recent AlphaWise analysis across two survey waves where multiple

sectors are covered and Australian corporates are well represented.

AI is already changing workforce decisions, but through churn, backfill discipline,

retraining and redeployment rather than a conventional layoff cycle.

Australia is an AI productivity case study given workforce mix & economic state

of play. Whether AI gains are linked to cost or revenue lines is a key focus.

Regulatory settings are coming increasingly into debate for Australian policy

makers and will likely influence pace and breadth of adoption from here.

Banks, Insurers, Telcos, Retailers, Healthcare, Real Estate and Professional

Services have the repeatable workflows most exposed to AI-enabled work

redesign.

Proof of Concept Upon Us: Australia’s Future of Work debate is no longer

theoretical: AI adoption is already reshaping hiring, workflows and cost bases across