Australian workers are embracing AI – but they’re still afraid to admit it

SYDNEY, AUSTRALIA, 8 July 2026, Australian workers are embracing AI faster and more effectively than other global counterparts surveyed, reporting stronger productivity, better quality work and valuable new skills. However, while employees are quietly integrating AI into their daily work, many remain uncomfortable admitting how much they rely on it, even as employers believe workers feel confident and supported using the technology. 

Employment Hero’s AI Paradox at Work report reveals a workforce that has embraced AI as part of everyday work. Yet despite seeing measurable gains in productivity, work quality and skills, many employees still feel guilt, secrecy or shame about using it. 

Among the key findings:

• 75 per cent of AI users say it has improved productivity.
• 74 per cent say it has improved the quality of their work.
• 61 per cent say AI is helping them develop more valuable skills – higher than UK, Canada and New Zealand 
• More than four in ten workers say using AI feels like “cheating”, despite most reporting improvements in their work.
• One in three use AI without their employer knowing.
• More than half have taught themselves AI through YouTube, TikTok and other online platforms.

Employment Hero APAC Managing Director, James Keene said employers have a critical role to play in helping their workforce use AI confidently and responsibly.

“It’s understandable that many businesses are still working out what AI should look like in their workplace. The technology is evolving quickly and there isn’t a one-size-fits-all approach but what we’re seeing is that when employers provide clear guidance and practical support, people are far more confident using AI in ways that benefit both the business and their own development,” Mr Keene said. 

“One of the most surprising findings was that the people getting the most value from AI are often the ones feeling the most conflicted about using it. They’re using AI to do better work, learn faster and take on more but many are still wondering whether they’re relying on it too much or whether others will judge them for using it.” 

Two sides to the AI paradox

The research reveals this AI paradox is driven by a disconnect between employee experience and employer perception. 

While 60 per cent of employers believe employees view AI positively, many workers tell a different story. More than four in 10 Australian workers say using AI to complete parts of their job feels like “cheating”.

While many employers believe they are creating positive environments for AI adoption, the research suggests some employees still aren’t sure where the boundaries are. Many are teaching themselves AI skills through platforms like YouTube and TikTok and remain uncertain about how openly they can use the technology at work. 

“The conversation is shifting from whether people should use AI to how organisations can help them use it confidently and responsibly. Most employees are already finding value in these tools—they just need clarity around what’s encouraged and what’s expected.”

The confidence gap

As AI becomes a standard workplace tool, the next challenge is preparing workers rather than replacing them.

Nearly half of Australian businesses say employees are using personal AI accounts for work tasks, while one in three workers admit they use AI without their employer’s knowledge. Together, the findings suggest AI adoption is happening faster than many workplace policies and conversations have kept pace. 

Dr Anna Kiaos, Founder and Director of Mind Culture Life Australia, and Researcher, Discipline of Psychiatry and Mental Health at UNSW Sydney, said this pattern points to a confidence and permission gap rather than a compliance one.

“AI is already making people better at their jobs – more productive, doing higher-quality work and developing new skills. The only thing holding the workforce back now isn’t the technology, it’s uncertainty about whether employees are actually allowed to use it, in the ways that work for them. The workforce has already voted for AI with their behaviour and now it is the leadership’s job to make it official by talking about it openly, confidently and with support. When leaders use AI openly and show their teams ‘this is how we work now,’ the guilt and shame fall away and the gains start to compound.”

Preparing Australia’s workforce for an AI-powered future 

While much of the public conversation has focused on AI replacing jobs, the research paints a more balanced picture. Businesses overwhelmingly expect AI to reshape existing roles and create new opportunities rather than simply reduce headcount. 

A quarter of Australian business leaders (23%) say new roles will be created due to AI, and a further 55% say existing roles will be re-focused, meaning the vast majority expect some form of transformation rather than outright job losses. Businesses are 1.6x more likely to expect to create roles than make redundancies, while only 17% think their workforce will look the same in 12 months’ time. 

Contrary to fears, the data suggests that AI-forward businesses see more need for junior staff. The research found businesses with AI at the core of their operations are growing entry-level headcount at more than double the rate of organisations with basic or no AI adoption.

Rather than eliminating opportunities for young workers, the findings suggest AI is changing the skills employers value and the type of work entry-level employees are expected to perform. Businesses with advanced AI adoption are more likely to prioritise qualities such as work ethic, communication skills, adaptability and AI literacy when hiring.

Dr Kiaos said, “The fear that it would hollow out entry-level work is being contradicted by the evidence: AI-forward businesses are hiring more staff, not fewer. AI is accelerating people’s potential instead of replacing it.”

According to Mr Keene, the findings challenge the assumption that AI and job creation are in opposition.

“It makes complete sense that some people are cautious about AI right now. The technology has moved incredibly quickly, and many workplaces are still figuring out what good AI use looks like.” 

“When staff feel they have to hide their AI use, it’s rarely because they’re trying to break the rules. More often, they’re simply unsure whether it’s genuinely encouraged. For leaders, it’s about removing that uncertainty and giving people the confidence to use these tools safely.

“We went through this shift ourselves last year when we made AI-first a company value – the biggest shift wasn’t the tools, it was leadership using them in front of everyone first.”

Employment Hero encourages all employers to take advantage of free resources and templates available to help with safe and transparent AI adoption in the workforce, including AI Policy templates and guides, workforce planning templates and human + AI workflow guides and more. 

For the full research findings, visit employmenthero.com/blog/australian-ai-paradox/