AI Engineer is now the single fastest-growing job in Australia, and the country is on course to be short of up to 60,000 AI specialists by 2027.
Artificial intelligence has moved from experiment to operating reality across Australian business in a remarkably short time. The hiring market has not kept pace. Demand for people who can genuinely build, deploy and govern AI is rising faster than the talent pool can grow, and the gap is now large enough to shape salaries, slow adoption and reset how employers compete for technical people.
Big Wave Digital is a specialist Sydney technology, AI and digital recruitment agency, founded in 2010. This report pulls together the most credible public data on Australia’s AI hiring market in 2026 alongside what we see week to week placing AI, data and engineering talent, so employers and candidates can plan with a clear view of where the market actually is.
Key findings
- #1 fastest-growing job. AI Engineer tops LinkedIn’s 2026 “Jobs on the Rise” list for Australia, with roughly 150% growth in AI engineer roles. (LinkedIn, 2026)
- Up to 60,000 short by 2027. Australia’s AI specialist workforce is projected to grow from about 40,000 in 2024 to around 85,000 by 2027, while demand is expected to reach roughly 140,000, a shortfall of up to 60,000 people. (Technology Council of Australia)
- 200,000 AI jobs by 2030. AI-related roles in Australia could reach 200,000 by 2030 on current trajectories. (Technology Council of Australia)
- AI literacy is the most in-demand skill. Across all jobs on LinkedIn, AI literacy is now the single most sought-after skill Australian employers list. (LinkedIn, 2026)
- AI is showing up everywhere in job ads. The share of Australian job descriptions mentioning AI roughly doubled in a year, from about 2.8% to 5.8%. (Indeed Hiring Lab Australia)
- A wider tech-talent squeeze sits underneath it. Australia is estimated to need around 1.3 million tech workers by 2030, roughly 312,000 more than current supply trends deliver. (ACS Digital Pulse)
Every figure on this page is drawn from a cited public source or from Big Wave Digital’s own market observations, with source dates shown in the methodology section. Where a precise national figure is not reliably available, we describe the direction of the market rather than invent a number.
Demand by role
The demand is not evenly spread. The roles Australian employers struggle most to fill are rarely entry-level. They are the mid and senior people who can both do the technical work and lead it.
- AI and machine learning engineers (production-grade). The people who take a model from a notebook into a monitored, scaled, production system. Generative AI, LLM, RAG and fine-tuning experience currently carries a clear premium, and MLOps capability lifts pay again.
- AI solutions architects. Engineers who can design how AI fits into a real product and data estate, not just prototype it.
- Machine learning engineers with deployment experience. Building is now common. Deploying, monitoring and maintaining at scale is the scarce skill.
- AI governance and AI risk analysts. As adoption spreads into regulated sectors, the ability to govern AI responsibly has become its own hiring category.
- Heads of AI and AI leadership. Organisations standing up an AI function need someone to own it, and genuinely experienced leaders are thin on the ground.
The common thread is seniority and proven, production experience. LinkedIn’s data points the same way: AI Engineer is the fastest-growing role in the country, and AI literacy is the most requested skill across the wider job market, which tells you the demand is broadening well beyond specialist teams.
The talent gap
The clearest way to see the gap is in the trajectory the Technology Council of Australia has mapped. Australia’s AI specialist workforce is projected to roughly double, from about 40,000 in 2024 to around 85,000 by 2027. That is strong growth by any measure. The problem is that demand is expected to climb to around 140,000 over the same period, leaving a shortfall of up to 60,000 people, even after the workforce expands.
Look further out and the scale becomes starker. AI-related roles could reach 200,000 by 2030. Underneath the AI-specific numbers sits a broader tech-talent squeeze: Australia is estimated to need about 1.3 million tech workers by 2030, roughly 312,000 more than current trends supply. AI hiring is happening on top of an already stretched technology labour market, not in isolation from it.
A shortage of this kind does two things. It pushes up the cost of the people who do exist, and it slows AI adoption for organisations that cannot hire or retain the right talent. The constraint on Australian AI is increasingly people, not technology.
The cost of AI talent
Scarcity shows up in pay. Public market data puts average earnings for people working in data and AI in Australia at around A$157,000, well above general software roles, with senior and specialist AI positions ranging higher again. Sydney, as the largest market, tends to set the pace, with Melbourne close behind.
We deliberately avoid publishing precise salary tables that date quickly. What moves AI pay is consistent: production and MLOps experience, generative AI and LLM skills, the industry (financial services and well-funded technology companies often pay above market), and company stage and equity. For a current, indicative range tailored to a specific role, seniority and location, our team benchmarks against live Australian roles every week.
For a full breakdown of what shapes AI pay across seniority and specialisation, see our AI Engineer Salary Guide: Australia 2026, part of our Technology Salary Guides: Australia 2026.
Any salary figures here are either cited public data or indicative observations of the Australian market. They are not a formal salary survey and vary by company, location, seniority, industry and individual experience.
Industries and cities
AI hiring is concentrated where adoption is deepest. Business AI adoption in Australia has risen sharply, with one measure of businesses using AI climbing from about 69% in 2024 to 89% in 2025, though depth of use varies widely. Larger enterprises are well ahead of smaller businesses, with large-organisation adoption running far higher than among SMEs.
By sector, technology, financial services and manufacturing lead the way, with financial services in particular competing hard for production-grade AI and machine learning talent. By location, Sydney is Australia’s largest AI hiring market and tends to lead on both volume and pay, with Melbourne the clear second. Remote and hybrid work has widened the national talent pool, which both intensifies competition for the best people and gives employers reach beyond their home city.
For employers
If you are hiring AI talent in 2026, the market rewards speed, clarity and a credible technical story.
- Benchmark against live roles, not last year’s data. AI pay is moving quickly enough that stale benchmarks lose candidates.
- Define the role before you advertise it. “AI engineer”, “machine learning engineer” and “data scientist” are paid differently because the work differs.
- Sell the problem, not just the package. The strongest AI people are drawn to interesting problems, good data and strong teams.
- Move fast. Slow, multi-stage processes are where good AI candidates are lost to quicker competitors.
- Consider contract for scarce, time-bound work. Experienced AI engineers are often available on a contract basis at day rates that reflect the scarcity of the skill set.
For candidates
For people with genuine AI capability, this is one of the strongest markets in the country.
- Production beats prototypes. The biggest pay step is for engineers who can ship, deploy, monitor and scale models, not only build them.
- Generative AI and MLOps skills carry a premium right now. LLMs, RAG, fine-tuning and the operational side of machine learning are where demand is hottest.
- Specialisation has value, but so does adjacency. Scarce specialisms like NLP and computer vision command strong rates, while broad AI literacy now lifts opportunities across the wider job market.
- Location matters less than it did. Sydney and Melbourne lead, but remote and hybrid roles have widened where you can realistically work.
Looking for your next AI role? Connect with Big Wave Digital.
Methodology
This report combines publicly reported third-party data with Big Wave Digital’s own observations from placing technology, AI and data talent in the Australian market.
Public sources and dates:
- LinkedIn “Jobs on the Rise” 2026 (Australia): AI Engineer as the fastest-growing role, around 150% growth, and AI literacy as the most in-demand skill. Based on member job-posting data through mid-2025, published late 2025 to early 2026.
- Technology Council of Australia: AI specialist workforce of about 40,000 in 2024 rising to around 85,000 by 2027, demand of roughly 140,000 and a shortfall of up to 60,000 by 2027, and around 200,000 AI roles by 2030. Reported 2023 to 2025.
- Indeed Hiring Lab Australia: the share of job descriptions mentioning AI roughly doubling from about 2.8% to 5.8% year on year. 2025 to 2026.
- ACS Digital Pulse: an estimated need for around 1.3 million tech workers by 2030 and roughly 312,000 additional workers required. 2024 to 2025.
- CPA Australia Business Technology Report 2025 and related adoption data: business AI adoption rising from about 69% (2024) to 89% (2025), with large enterprises ahead of SMEs.
- Salary observations: public market data putting average data and AI earnings around A$157,000, supplemented by Big Wave Digital’s live benchmarking.
Where sources differ on definitions, we have used the figures as published and described them as projections rather than certainties. We have not published precise national salary tables, because they date quickly and vary widely by role and company. Indicative ranges are available from our team on request.
Frequently asked questions
How big is the AI talent shortage in Australia?
On Technology Council of Australia projections, Australia’s AI specialist workforce is expected to reach around 85,000 by 2027 against demand of roughly 140,000, implying a shortfall of up to 60,000 people, even as the workforce roughly doubles from about 40,000 in 2024.
What is the fastest-growing job in Australia in 2026?
AI Engineer tops LinkedIn’s 2026 “Jobs on the Rise” list for Australia, with roughly 150% growth in those roles. AI literacy is also the most in-demand skill across the wider job market.
How many AI jobs will Australia have by 2030?
The Technology Council of Australia projects AI-related roles could reach around 200,000 by 2030, sitting on top of a broader need for an estimated 1.3 million tech workers by the same year.
Which AI roles are hardest to fill?
Mid to senior, production-focused roles: machine learning and AI engineers with deployment and MLOps experience, AI solutions architects, AI governance analysts, and Heads of AI. Entry-level scarcity is far less of an issue than senior scarcity.
How much do AI specialists earn in Australia?
Public data puts average data and AI earnings around A$157,000, with senior and specialist roles higher again and Sydney leading on pay. For a current indicative range tailored to a specific role, contact Big Wave Digital, and see our AI Engineer Salary Guide: Australia 2026.
Which cities and industries are hiring most?
Sydney leads, with Melbourne close behind. Technology, financial services and manufacturing are the strongest sectors, with financial services especially competitive for production-grade AI talent.
About the author
Keiran Hathorn is the Founder and Director of Big Wave Digital, the Sydney-based specialist technology, AI and digital recruitment agency he founded in 2010. Over the 16 years since, Big Wave Digital has placed engineers, data and AI specialists and technology leaders for employers across Sydney and Australia. Connect with Keiran on LinkedIn or read more on the About Keiran Hathorn page.
Related reading:
- AI Engineer Salary Guide: Australia 2026
- Technology Salary Guides: Australia 2026
- AI Recruitment Agency Sydney
- Machine Learning Recruitment
- Data Analytics Recruitment Agency
Disclaimer: This report aggregates third-party public data alongside Big Wave Digital’s market observations. Projections are inherently uncertain and figures vary by source and definition. Salary information is indicative, not a formal salary survey.
