Can Robots Solve Australia’s Labour Shortage? Experts Say It’s Time to Automate

As labour shortages continue to challenge Australia’s service sector, businesses are increasingly turning to automation to bridge the gap. This trend mirrors global movements, particularly in countries like Japan, where robotics and artificial intelligence (AI) are being deployed to address similar workforce shortages.

In Japan, AI-driven humanoid robots are being developed to assist with essential services, including aged care—one of the most understaffed industries. Researchers in Tokyo have introduced AIREC, a robot capable of assisting patients, cooking, and even doing laundry. This innovation is seen as a response to the country’s severe ageing workforce crisis, where there is only one applicant for every 4.25 jobs in the sector. AIREC is expected to be operational by 2030, with an estimated cost of $67,000.

Australia is facing similar workforce challenges, particularly in hospitality, retail, and aged care. A report by McKinsey & Company highlights that advances in generative AI have accelerated automation opportunities across the country, potentially boosting productivity and alleviating staffing shortages. However, widespread adoption depends on accessibility for smaller businesses and industry-wide support.

Elad Inbar, CEO of RobotLAB and a leading expert in robotics, believes automation is a key part of the solution.

“For better or for worse, our current services sector labour shortage seems here to stay. Fortunately, there is a new way to alleviate this shortage in the form of a new class of tireless workers that emerged during the pandemic: service robots,” Inbar writes in his new book Our Robotics Future.

His company, RobotLAB, has been at the forefront of integrating robotics into various industries, including restaurants, hotels, and healthcare. Inbar insists that robots should not be viewed as a threat to workers but rather as a way to enhance jobs and business profitability.

“Robots are not here to take our jobs; they are here to make our jobs more meaningful and revolutionise the way that we work, helping business owners operate more profitably,” he says.

While automation presents significant opportunities, there are challenges to overcome. Businesses must consider initial investment costs, employee training, and potential resistance to change. However, with countries like Japan leading the way and proving the success of robotics in essential services, Australia has a strong case for increasing its investment in automation.

The timeline for widespread adoption in Australia remains uncertain. Some industries have already begun incorporating AI and robotics, but broader implementation will depend on technological readiness, government policies, and economic factors. However, with labour shortages persisting, automation may soon become a necessity rather than an option.

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