Recruitment consultancy Robert Walters has published findings that indicate a significant shift in hiring priorities within Australia and New Zealand.
Surveying over 2,000 white-collar professionals, the study revealed that 96% of respondents now rate soft skills as equally or more important than technical skills. In fact, 92% of employers said they had turned down candidates due to insufficient soft skills.
Robert Walters CEO for Australia and New Zealand, Shay Peters (pictured), attributes this shift to the rapid adoption of AI technology across industries.
“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,” he said.
Peters noted that Australia, recently identified as a top user of AI, sees over 2.2 million ChatGPT-related searches each month.
As AI gains traction, Australian employers are now placing greater emphasis on soft skills such as communication, negotiation, and problem-solving. Many recruiters report that companies are prepared to pay more for candidates with strong soft skills.
Peters explained that clients increasingly seek candidates who can effectively integrate with AI in their 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. Additionally, clients are expressing the need for candidates to not only utilise AI but also collaborate with it effectively,” he said.
Peters also noted that Gen Z workers have an advantage in navigating AI-driven workplaces due to their comfort with technology. Their ease in integrating AI tools into their daily work gives them an edge as employers seek candidates who can work in tandem with AI solutions.
Soft skills, typically encompassing teamwork, communication, and critical thinking, are gaining importance in fields where hard skills can be automated.
A recent report from Indeed found that over half of employers identified communication as the most valuable skill for the future, followed closely by teamwork, adaptability, and problem-solving.
Peters underscored the importance of developing soft skills as AI continues to reshape workplace dynamics.
“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,” he said, suggesting that candidates invest time in honing these skills to improve their employability as AI expands in the professional space.
In a parallel study, New Zealand’s Financial Markets Authority (FMA) released research on AI adoption across the nation’s financial services.
The FMA’s report examined AI use in sectors including insurance, banking, and asset management, aiming to understand both its advantages and potential challenges.
Stuart Johnson, chief economist for the FMA, stressed the need for cautious AI implementation.
“Our findings emphasise the need for a balanced approach to harness AI’s benefits while addressing governance and risk concerns,” he said.
Meanwhile, latest research from UserTesting, conducted across Australia, the US, and the UK, showed that while AI adoption is growing in the insurance sector, human advisors remain popular among consumers.
The survey found that, although AI tools can simplify policy comparisons and provide helpful insights, many Australians still favour personal guidance.
In Australia, 25% of respondents saw AI as useful for understanding complex insurance information, and 45% believed it could help with policy comparison.
These findings suggest that while AI will likely continue to grow in utility, human advisors still hold a central role in customer-facing areas like insurance, where personal interaction remains valued.
