What will Australia’s landmark AI enforcer mean for employers?

Bodies and businesses are expected to welcome the Albanese government’s strong provisions around AI companies, but many are left wondering whether this will positively impact the country’s workforce.

In a press conference outside of Parliament House on 10 November, Prime Minister Anthony Albanese reinforced Australia’s position as making sure “we shape AI rather than AI shapes us”, noting an intention to reap productivity benefits from AI that can bolster economic resilience.

Further to the July announcement that the government would legislate world-leading AI standards, Albanese provided further information on Tuesday, detailing that the protections will involve a targeted AI safety regulator that will have the capacity to enforce penalties against AI companies.

He further explained that companies will be required to maintain security controls across all stages of development and deployment, identify and manage risks, rapidly notify the government should any incidents occur, allow for independent evaluation of models, maintain and publish safety and security frameworks, and be responsive to updates.

When asked whether the government will provide any guidance to companies on retaining staff levels and planning for growth despite the difficult economic environment, Albanese said: “My message to the business community and indeed to all Australians is that my government works each and every day to advance our national interest, including to protect our economic position.

“That means making sure we try to maximise employment. We do have the lowest average unemployment of any government over the last 50 years, something that’s a source of pride, but we also work each and every day as we are here on these issues, including artificial intelligence, represents an enormous opportunity and a major economic issue.”

HR Leader spoke to Swaab workplace relations lawyer Michael Byrnes to explore what issues the government’s announced protections will address, how it might operate in practice, and what would change for employers from a legal standpoint.

According to Byrnes, the protections signal that the government is both cognisant of the risks of AI and willing to obstruct open access to data, adding that companies will likely welcome regulation purposed to minimise the risk on businesses.

“In taking this step, the government has potentially signalled to employers, employees and unions alike that it is willing to step in and further regulate the use of AI, curtailing some of its excesses in the workplace,” he said.

“While the announced legislation is directed at tech companies, it is highly likely that employers seeking to use AI models extensively will also be subject to certain obligations and restrictions, to curb its excesses and facilitate AI operating safely and effectively in tandem with workers, rather than replacing them altogether.”

Byrnes added that union and employee concerns about the impact of AI on job creation and security are reasonable considering the seeming increase in redundancy and restructures across both small and big businesses.

From a legal standpoint, Byrnes said that this might necessitate change within industrial instruments, such as a requirement to consult with employees and representatives regarding the technology’s implementation.

He said: “Some other potential regulation that might be considered by government (or the Fair Work Commission in its award-making function) include specific consultation obligations about the implementation and use of AI, limitations on use of AI to control or monitor employees, and a duty or requirement to provide human oversight of certain functions performed by AI.”

The Australian Council of Trade Unions (ACTU) has praised the government’s regulatory stance, having long since campaigned for worker-first AI legislation.

According to ACTU assistant secretary Joseph Mitchell, while the regulations may insulate workers from the risks posed by AI models, workers remain exposed to risk from companies that make significant changes to workforces due to AI, offshoring and restructuring.

“Australians don’t trust AI because of the lack of clear benefit for working people. We have had big promises, but so far, no guarantee that any benefits will be shared with workers. All workers have experienced is risks to our security and to our rights at work,” he said.

“We need to make sure workers’ rights are fit for purpose, and workers have genuine protections against job displacement and against bosses using AI for intrusive monitoring and surveillance to undermine the quality of work to make a quick buck, and for decisions that shape our working lives.”

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