Business groups unhappy with 'Future of Work' recommendations

Union-backed approach ‘bad for business’

Black stated that while sensible regulations are necessary, the report risks enabling unions to veto the introduction of new technologies, thereby hindering AI adoption.

"At a time when we have significant productivity challenges, this union-backed approach will simply add more red tape and slow down technology take-up — ultimately this is bad for workers and bad for business," he said in a statement.

Similarly, ACCI Chief Executive Andrew McKellar argued that the recommendations take an overly simplistic view of AI, with one-size-fits-all regulations that could harm businesses already grappling with complex industrial relations laws.

"The recommendations would create heavy-handed obligations on AI deployment in workplaces and undermine genuine efforts to raise productivity in Australia," he added.

'Future of Work' report

The House of Representatives Standing Committee on Employment, Education, and Training's The Future of Work report was tabled on Tuesday, outlining 21 recommendations aimed at protecting employees amid the digital transformation of workplaces.

Some of its amendments include introducing reforms to the Privacy Act 1988 and the Fair Work Act 2009 to protect worker data and privacy.

Among the other recommendations in the report are ensuring greater consistency and modernisation of relevant legislation to enhance employee protections, as well as reviewing modern awards for high-risk industries to ensure workers are protected where AI has significantly transformed job design.

While business groups have strongly opposed the report, unions have largely supported its focus on strengthening worker protections. The Australian Council of Trade Unions (ACTU) welcomed recommendations for stronger privacy safeguards, including measures to limit intrusive employer surveillance and protect workers' personal data.

ACTU Assistant Secretary Joseph Mitchell emphasised that the union aims to ensure that AI adoption benefits all Australians, not just large corporations.

"The adoption of new technologies should benefit all Australians, not just big business," Mitchell said. "Workers deserve greater transparency over AI adoption and the collection of personal data by their bosses."

Risks from AI adoption

Australia's Future of Work report comes amid growing calls on employers and governments across the world to regulate the use of AI in workplaces following the emerging risk from the technology's rapid adoption over the past years.

According to the report, the adoption of AI and automated decision-making tools has sparked concerns across both business and union sectors. These include:

• Privacy Concerns: The report underscores the risks related to the excessive collection of employee data. With AI systems collecting vast amounts of personal and sensitive information, there's concern about how this data is used, including its potential misuse and lack of transparency. Specific risks include data being used beyond its initial purpose, unauthorised disclosures, and the sale of personal data to third parties without employee consent. 
• Surveillance and Monitoring: Increased workplace surveillance, especially through AI and ADM, has raised alarms about its impact on employee wellbeing. Excessive monitoring, such as GPS tracking, keystroke logging, and facial recognition, can invade personal privacy, lead to mental stress, and undermine employee autonomy. The report emphasises that this type of surveillance can contribute to unhealthy workplace cultures, affecting workers' mental health, job satisfaction, and productivity.

• Job Displacement and Work Intensification: While automation can drive productivity gains, it also poses a significant risk of job displacement, particularly in low- and medium-skill roles. AI systems may also intensify workloads and create unrealistic performance expectations, leading to physical and psychosocial harm, including stress and burnout.

Developing AI policies at work

Amid these risks, the Australian Institute of Company Directors (AICD) revealed that formal policies are not being developed quickly enough for the growing use of AI in workplaces.

According to the AICD last year, only 18% of organisations that have adopted AI have developed policies around it within six months of implementation. On the other hand, another 38% of AI-implementing firms have no plans to establish formal policies at all.

For organisations seeking to establish an AI policy, the Corporate Governance Institute offered a 10-step guide:

1. Establish a working group to lead the AI policy development process
2. Educate the board on AI and its ethical implications
3. Define the policy's objectives
4. Assess the ethical principles and values
5. Evaluate the legal and regulatory compliance, including data protection laws, privacy regulations, and industry-specific guidelines
6. Identify potential AI use cases and risks within the organisation
7. Establish accountability and governance by defining the responsibilities of stakeholders involved in AI development, deployment, and monitoring
8. Ensure transparency and explainability by requiring clear documentation and responsible data practices
9. Encourage continuous monitoring and evaluation of the AI system's performance, impact, and adherence to ethical standards over time
10. Communicate the AI policy in clear, accessible language