Australia urged to act on workplace AI as legal gaps widen

Australia is under pressure to fast track rules on artificial intelligence at work. Experts warn current laws are not keeping up. Workers risk being left exposed. The warning comes as Workplace Relations Minister Amanda Rishworth launched a new tripartite AI forum with unions and business groups.

The concern centres on a fragmented legal system. A report by the John Curtin Research Centre, backed by the Shop Distributive and Allied Employees Association, says AI could intensify workloads, increase surveillance and weaken job security. It warns workers may have little legal remedy. Unions want stronger rules. The Business Council of Australia is urging caution. It notes – early regulation may hurt investment, citing the European Union and Canada.

The impact is already visible. There is no single law governing workplace AI. Rules differ across states. Federal laws on discrimination, human rights and Fair Work also apply. But their use in AI cases remains unclear. This creates daily challenges for HR teams. Decisions on tools like biometric scanners are often complex and case specific. Experts also warn new AI laws could add compliance burden.

AI use is rising fast. Research from Robert Half shows 97% of hiring managers expect AI skills. Yet 88% struggle to find talent. Over four in five workers see generative AI as key to career growth. Nearly nine in ten businesses already use AI in at least one function. Hiring is also changing. Over a third of managers say AI generated applications make it harder to assess candidates.

“If someone comes to me and asks for advice about implementing biometrics data scanners in the workplace, that's not necessarily a quick or easy answer,” workplace lawyer Shannon Chapman said. “It will be jurisdiction specific. It will depend on the type of data that's being gathered, how it's going to be stored, how it might be able to be used.”

Chapman argued, “while consistency across jurisdictions would be welcome, introducing new AI-specific legislation also carried the risk of creating additional layers of compliance burden. Any new rights around job security or restrictions on monitoring, would raise immediate questions about how they interacted with existing employer obligations.”

Australian Services Union national secretary, Emeline Gaske said, “AI-driven productivity demands, after-hours messaging, and the threat of digital surveillance. We do not agree that AI is not affecting jobs. The best time to regulate to make sure it's done in a fair way is before the horse has bolted.”

Finance Sector Union national assistant secretary, Nicole McPherson, said “Voluntary rules are not enough. Claimed some firms mask AI job losses by outsourcing roles first. Meanwhile, Bran Black, chief executive, Business Council of Australia, said, “We have seen other countries taking this approach. Both are starting to roll back their position because they have realised they missed out on investments, they missed out on opportunities.”

The report suggests clear steps. It calls for a national AI taskforce. It urges a review of the Fair Work Act. It recommends mandatory human oversight. It also proposes an expert panel within the Fair Work Commission. It calls for worker consultation and more training. 

Co author Dominic Meagher said, “AI is so much more powerful than social media. We do not have the luxury of getting it wrong this time. Just because AI makes a decision, it does not mean that it's an excuse for the company to sidestep their obligations.”

Experts say businesses must act now. Policies and contracts should cover AI use. Training is essential. “Do you have a policy about AI use? What does it say? Does it clearly tell your employees what the consequences are if they breach that? Have you trained your employees on it?” Chapman said.

Minister Rishworth said, “I'm not 100% sure that the recent adoption has led to people sitting around twiddling their thumbs. My mind is more focused on making sure we don't have cognitive burnout.”

Safe Work Australia is reviewing AI related workplace risks, including psychosocial harm. This signals tighter scrutiny ahead even without new laws.