Australia is witnessing a troubling slide in gender diversity at the top level. New data from LinkedIn reveals that the rate of women being hired into leadership roles has dropped by 8%, marking the third year in a row this figure has declined and also mirroring a global backslide in female leadership appointments.

This regression brings the hiring rate for women in senior roles back to where it stood in 2020, despite mounting evidence that gender-balanced leadership is crucial for economic resilience and innovation, particularly in the AI-driven future.

Australia’s AI imperative: $200 billion opportunity at risk

Australia stands at a crossroads. According to a comprehensive report by Professor John Mangan, emeritus professor of economics at The University of Queensland, greater AI utilisation could boost Australia’s GDP by more than $200 billion annually and create 150,000 new jobs between 2023 and 2030.

The 2024 report, Australia’s AI Imperative: The Economic Impact of Artificial Intelligence and What's Needed to Further Its Growth, warns that realising these benefits requires AI systems that meet global standards across key industries — technology, finance, healthcare, education, and government. It also calls for greater investment in university-led AI research and urgent upskilling of Australia’s workforce.

Yet, these ambitious goals are at risk if women continue to be shut out of the very leadership roles that will shape AI strategy and policy.

AI boom needs all hands on deck – not just half the workforce

Alongside Professor Mangan’s findings, data from LinkedIn underlines that AI could inject $200 billion per year into Australia’s economy and unlock AU$12.5 trillion globally in major economies.

But this transition won’t be successful without inclusive leadership. Women, who make up nearly half the workforce, are essential to driving innovation, ensuring ethical AI deployment, and leading the transformation. Excluding them limits not only diversity — but economic potential.

According to LinkedIn’s analysis, Australian women are up to 37% more likely than men to have non-linear, multi-domain career paths — compared to a global average of 20%. This kind of adaptive, cross-functional experience is vital in leading AI-related innovation.

Additionally, women tend to excel in communication, collaboration, and creative problem-solving — skills that are increasingly critical as AI takes over more routine and technical tasks.

Yet, the higher you go, the fewer women you find.

While 44% of Gen Z leaders in Australia are women, the numbers drop sharply with age: 39.8% of millennial leaders and only 20% of baby boomer C-suite executives are female.

Globally, the pattern holds. Women occupy just 28.8% of vice president and C-suite roles, despite representing 41.2% of the workforce. In STEM fields, the disparity is even greater — only 12% of C-suite roles are held by women.

Skills-based hiring could be the game changer

To reverse the trend, LinkedIn urges a shift toward skills-first hiring, which emphasises practical abilities over traditional qualifications. This approach could increase leadership opportunities for women by 6.3 times globally, expanding the talent pool and helping fill urgent skills gaps.

For Australia, battling a tight labour market and stagnant productivity, this is a strategic lever to pull. A skills-based economy is more adaptable, inclusive, and innovation-ready.

“As we enter this transformative era of AI, sidelining half of the country’s talent pool risks stalling growth, innovation, and productivity,” said Audrey Lobo-Pulo, head of public policy & economic graph at LinkedIn Australia & New Zealand.

She highlighted that women bring the exact kinds of leadership attributes and cross-sector experience needed in an AI economy, yet they are underrepresented in the positions that matter most.

“By adopting AI-driven, skills-based hiring, businesses can broaden their talent pool and ensure that women are not just participants — but leaders — in the AI economy,” she further said.

The rise of AI offers an extraordinary opportunity to boost economic productivity, spark innovation, and secure Australia's position as a global leader. But realising that vision depends on harnessing the full breadth of the talent pool, and that means fully engaging women in leadership.