How vocational education can power workplaces in the age of AI

We’re all aware that we are living through a significant workforce transformation. AI is revolutionising industries, and at the same time, Australia has four generations participating in the workforce. It’s a crossroads that presents both challenges and opportunities. ?

A challenge for every generation

Generation Z (Gen Z), the youngest generation in our workforce, are digital natives. They don’t remember life without the internet, so AI is a natural evolution and one they have come of age with. However, the challenge for this generation is around maintaining workplace soft skills and those human competencies that create thriving teams and organisations.

We’re hearing it from employers: younger workers are immersed in technology, and this can be a double-edged sword. Technological know-how in the workplace today is a must, but overreliance has drawbacks. There is a very real risk that social and soft skills, like communication, critical thinking, analysis and creativity, will be lost in the rush to embrace AI.

For many mid-career and mature-aged workers, AI is a learning curve. And that’s not to say people in these generations aren’t digital savvy. However, they have worked a substantial part of their careers without AI, so it is a shift in the way they do things every day. These skills were built over decades, so learning and actively embracing new ways can feel daunting.?

Then, we have the multi-generational workers who are being displaced by AI. For this community, AI may feel like a threat to their livelihoods.

In this climate, I’ve been reflecting on the role of vocational education and training (VET) and how it can assist our entire workforce in the age of AI.?

A competency-based foundation is a win for everyone

The beauty of vocational education lies in its competency-based approach. This framework ensures that learners are not just passive recipients of knowledge but active participants in acquiring practical skills that match real-world employer demands.

An employer can hire a VET graduate knowing they haven’t just learnt about the industry through theory or short practical experiences. They have actively demonstrated an ability to do the job and meet national standards as a graduation requirement.

In the context of AI, where technology evolves at an unprecedented pace, this approach means VET is well placed to adapt to expand deeper into AI-related skills and competencies.

From data analysis to machine learning fundamentals and AI ethics, VET programs are uniquely positioned to bridge the gap between traditional education pathways and the emerging requirements of the AI-enhanced workforce.

Developing workplace-ready soft skills

As I mentioned above, in a digital age, we risk losing some of our uniquely human soft skills, from communication and empathy to creativity and problem-solving. These skills come from real-life experiences. But with so many courses available solely online today, it’s possible that you can hire a graduate who has not had any exposure to an actual workplace.

It’s another advantage of VET. The skills-based nature of qualifications means that even students studying solely online have completed significant practical components in real workplaces. This experience is not just about developing the competencies to do the job. It’s also about developing workplace-ready skills, understanding how to work in a team, handling conflict, interpreting and acting on instructions, addressing challenges, recognising opportunities and analysing information – the list goes on. These skills can’t be taught in a classroom – they are learnt through immersion and experience.

Upskilling and reskilling in a time of uncertainty

With the rapid pace of change in our workplaces today, the importance of lifelong learning has never been more apparent. A four-year course of study completed ten years ago may hold little relevance to today's workforce, so much has changed.

VET is well placed to deliver short, sharp learning experiences that are critical for both displaced workers and those who remain in industries that have changed significantly. Rather than being steeped in theory, VET is all about the skills you and your employer need for today, and that is critical to keep Australia’s workforce skilled and ready for what’s next.

When it comes to those who have lost or are at risk of losing their jobs to robotics and automation, VET is a critical lifeline. It helps people transition careers when their jobs have become obsolete – a life-changing opportunity. And it also helps us retrain workers for industries facing significant skill shortages, like healthcare – something we can all get behind.

Lifelong learning is critical

I’m proud to be at the helm of VERTO during this evolution. I am lucky to see the power of education and training every day, as it helps individuals and industries redefine the path forward.

Alongside VET qualifications, we run programs helping people transition careers, from short courses to gain industry skills and licences to building workforce-ready skills or starting a small business. We also run internal programs for organisations looking to prepare their teams for an ever-changing world.

And in the age of AI, one thing is certain – a commitment to continuous learning will carry us through to the other side, ready for whatever comes next.