Chapter 3 - Opportunities

  1. Opportunities
    1. This chapter considers how AI and ADM can provide wide-ranging benefits for employers, workers and regulators. Benefits are often reported in the healthcare and manufacturing sectors, for instance. Some stakeholders consider ADM and AI to be immensely positive while others believe more evidence about the impacts is required and cautioned against the risks.
    2. According to various stakeholders, including the Australian Industry Group, a high proportion of employers have not fully grasped the opportunities that technologies like AI can have on their businesses.[1] Workers are generally aware of some opportunities associated with AI and ADM in the workplace and are open to their use, but are very cognisant of risks. Regulators are gaining an increased understanding of how AI and ADM can help them.
    3. Many stakeholders highlighted that the benefits arising from ADM and AI enjoyed by employers will not necessarily flow to workers. There needs to be an express intention to do so, and active mitigation of risks to workers. The Centre for Future Work explained that:

There is no reason to believe that artificial intelligence (AI) deployed to increase productivity will result in net benefits for workers unless AI is developed and deployed with an explicit objective to ensure work and working lives are improved.[2]

Productivity and efficiency gains

3.4In simple terms, productivity relates to the amount of goods and services produced and the outputs, while efficiency relates to how well it gets done and the processes.[3] Research shows that AI and ADM can provide an increase in productivity and efficiency gains for workplaces.[4] Some examples include:

  • boosting economic growth and increasing Australia’s global competitiveness. For example, a Google-commissioned study predicted that by 2030, the Australian economy could grow by $2.2 trillion from AI and automation[5]
  • enhancing business operations by automating routine tasks—and even dangerous ones, thereby avoiding human injuries and increasing worker productivity—and improving decision-making processes[6]
  • improving decision-making as ‘ADM systems can support decision making at greater speed, this processing enables faster response times to reduce delays and improve operational efficiency’.[7]
    1. Throughout history, technological advancements have tended to enhance productivity and efficiency.[8] The Australian Chamber of Commerce and Industry stated:

Despite their disruptive nature, every industrial innovation that has increased automation over the last two centuries has led to increased total employment and wealth, in addition to gains in efficiency and economic output.[9]

3.6Recent evidence suggests that generative AI can increase productivity generally for workers, as well as for specific cohorts like less skilled employees.[10] It is important to keep strengthening the research base to work out how to maximise these benefits.

3.7The Business Council of Australia underlined that it is imperative for Australia’s future prosperity and stability that we harness the productivity benefits presented by these technologies. Australia’s productivity growth was at a 60-year low in the last decade.[11] While poor productivity growth can be felt by other advanced economies too, it is a strong reminder that ‘Australia must unlock productivity potential through digital means to remain competitive on a global scale’, requiring government and industry to be responsive and agile.[12] This is also crucial to maintain Australia’s standard of living.[13]

3.8Productivity and efficiency improvements for employers will not necessarily benefits workers, so opportunities for them need to be seized proactively. Associate Professor Alysia Blackham suggested that technology be designed and introduced in the workplace with an explicit aim to improve workers’ lives.[14] Moreover, Mr Joseph Mitchell, Assistant Secretary, Australian Council of Trade Unions, argued that employers should equitably share productivity gains with workers through higher wages and improved conditions.[15] This could be achieved through enterprise bargaining or legislative measures, especially given the potential for wage theft.

3.9There are also concerns around the uptake or lack thereof of AI and ADM. Given productivity and other benefits, some employers are deploying these technologies without being aware of ‘what it is that they're doing, what kind of data they're collecting and how they're making decisions based off it’.[16] This is countered by another risk that the government’s and public’s lack of understanding informs responses that can reduce technological uptake and impair productivity gains. As the Shop, Distributive and Allied Employees’ Association explained:

The productivity dividend generated by the digital transformation must be shared for social cohesion and shared prosperity. This must include mechanisms to ensure a fair wage—a share of productivity growth—secure and sustainable work and, where possible, reduced working hours with no reduction in pay, including a review of the length of the working week and the introduction of five weeks of annual leave. We're at a crossroads and we have a choice to make.[17]

3.10Other potential risks include increased productivity leading to higher worker intensity and expectations. This can have WHS implications. Further, over-automation can hinder productivity as it can lower job satisfaction.[18]

Job creation and evolution

3.11Increased automation, including through leveraging AI and ADM, will lead to some jobs becoming redundant, others being reshaped, and new ones emerging.[19] It is important to continuously and actively balance job loss through job augmentation and creation.

3.12The World Economic Forum found that 50 per cent of employers anticipate that jobs will be created through AI, especially technical and analyst roles.[20] The Work Futures Hallmark Research Initiative at the University of Melbourne, stated that:

While concerns over job displacement are valid, historical evidence suggests that technological advancements have consistently led to the creation of new employment opportunities rather than rendering human labour obsolete.[21]

3.13It is commonly expected by employer associations that there will be a growth in new roles in existing, as well as novel, industries. Australia will need employees who can directly support these technologies—from their safe design through to their production, deployment, maintenance, and management.[22]

3.14The Future Skills Organisation identified the sorts of fields that are expected to grow as a result of ADM and AI, including:

  • ADM and AI
  • data science
  • sustainability and business
  • specialised engineering
  • cyber security
  • technology management
  • regulatory compliance
  • technology and ethics.[23]
    1. As business and organisations increasingly adopt emerging technologies and use them for more diverse tasks, it will become clearer what jobs are still in demand and which new ones are created. As the Business Council of Australia explained:

By changing what is possible, advancements in Digital Tech require businesses to assess how their existing processes must be adapted to remain competitive and meet the demands of customers, investors, shareholders and workers. As ongoing trialing, training, and experimentation clarifies how Digital Tech can most successfully be integrated into business practices, this will shape the future needs of businesses. These needs will then dictate the number and kinds of jobs that continue to be in demand.[24]

3.16Most non-digital roles will become more digitalised. For instance, many roles now use generative AI. Generative AI can make it easier to access certain jobs, can augment certain roles and require human adaptation, and can also create new roles. The growing use of generative AI will require workers who can help design, input, and review AI outputs.

3.17While DEWR recognises the positive impacts that generative AI can have, it also warns that ‘like previous waves of automation, [it] will likely lead to some workers being displaced’, including some entry-level jobs.[25] Whereas, Professor Jeff Borland, Truby Williams Professor of Economics at the University of Melbourne, predicted that ‘perhaps the largest impact of AI is going to be on creating expanded roles for low-skill workers’.[26]

3.18Having access to, and the ability to use and optimise AI will become more pertinent to job success. Science and Technology Australia shared Amazon Web Services’ research that employees who are given AI platforms to use will perform better than those without, and most employers prioritise hiring AI talent yet 75 per cent cannot find it.[27] The Business Council of Australia and RMIT found that employers are willing to pay a premium for digital and technical skills.[28]

3.19It is important that Australia seizes these job creation and skills development opportunities to increase our nation’s economic competitiveness. The Shop, Distributive and Allied Employees’ Association contended that Australia is lagging internationally on this front.[29]

RegTech and business software

3.20Business software and RegTech can help improve regulatory compliance in the workplace relations system. They can have AI platforms embedded that leverage advanced algorithms and predictive analytics.[30]

3.21DEWR defines RegTech and differentiates it from business software:

RegTech refers to the application of technology by regulators or by regulated entities to meet their regulatory objectives and obligations. Whereas business software may support compliance as one of many functions, compliance tends to be the central function of RegTech solutions.[31]

3.22Businesses and government organisations, as well as regulators, are increasingly using RegTech. Employers can use it to help them meet their compliance obligations enshrined in laws and regulations, such as workplace obligations (modern awards, enterprise bargaining agreements and the Fair Work Act). A common example of RegTech is payroll software that helps entities meet tax obligations. Regulators mainly use RegTech to monitor and enforce compliance.[32]

3.23RegTech can benefit employers by enhancing the productivity and efficiency of their organisations. This includes streamlining and automating compliance processes like record-keeping and reporting, and decreasing human errors linked to decision-making in manual processes. Other benefits include:

  • real-time compliance monitoring and reporting to improve compliance rates
  • lower costs to adhere to regulatory requirements by automating processes
  • better transparency and accountability due to the maintenance of detailed records of compliance, including who performed what and when
  • ability to stay up to date with regulatory changes by updating organisations’ policies and procedures
  • improved risk management through identifying trends in compliance data.[33]
    1. RegTech promotes regulatory oversight by helping regulators monitor and enforce compliance more efficiently and accurately. For instance, the Australian Securities and Investments Commission uses it. Regulators gain from RegTech as it:
  • creates standardised compliance reports and enables remote audits, which helps to simplify the audit and inspection processes
  • facilitates more regular and comprehensive reviews
  • analyses big data to quickly identify compliance trends and issues
  • enhances targeted risk assessment
  • enables faster communication with regulated organisations
  • improves cross-jurisdictional and sectoral oversight.[34]
    1. Notwithstanding these advantages, challenges do exist. For example, RegTech driven by AI needs to be monitored for algorithmic bias, and large amounts of personal data are used, giving rise to privacy and other concerns.[35] The Business Council of Australia has warned that regulators should be transparent about their use of RegTech solutions and ensure they:

have been thoroughly tested and understood and only use them in a way that promotes a level playing field. They must also provide clear information to industry as to when and to what degree these programs will be relied upon in regulatory processes, as well as create a channel through which issues arising from the use of these applications can be debated or disputed. This transparency is necessary in the workplace relations system due to the high costs to business of being erroneously deemed non-compliant and the significant risks to workers should an employer be incorrectly deemed compliant.[36]

3.26RegTech can help identify non-compliance and provide corrective actions and guidance. However, non-compliance must be reassessed or investigated by a human regulator as ‘the digital system cannot be the sole arbiter of non-compliance’.[37] Non-compliance occurs for many reasons such as the complex regulatory environment of the workplace relations systems and the resources required to support it. Employers often have a lack of understanding of the plethora of compliance obligations and need to seek expert advice.[38]

3.27A fundamental question is: who is accountable for errors resulting in non-compliance when using RegTech? An error can be caused by an automated or human factor. Automated systems can assist with identifying errors, as explained by Accenture:

In the event of non-compliance, detailed logs from RegTech systems can help determine the root cause of errors and identify responsible parties. This transparency ensures that accountability is clearly assigned, and the source of the error is clearly identified.[39]

3.28Some employers have called for ‘safe harbour’ provisions, so businesses would not be responsible for errors due to a fault in the software. However, there are concerns that this could de-incentivise human supervision.[40] As Accenture highlighted, ‘for any system that is monitoring and reporting on compliance, accuracy and human oversight is critical’.[41] Employers can educate their staff and implement policies and procedures to ensure human oversight.

3.29Box 3.1 explains how RegTech can assist SMEs as a tool to promote regulatory compliance.

Box 3.1RegTech and SMEs

RegTech has huge potential to assist SMEs to keep up with the complex regulatory environment of the workplace relations system. However, it is costly to roll out RegTech in an already challenging financial environment. Further, many SMEs do not have the time, knowledge or foundational infrastructure required.

Stakeholders pointed to the need for support from government, including financial assistance and partnerships. Given most Australian businesses are SMEs, it is vital that they are not left behind on the RegTech front. There is also a need to increase their access more generally to technological platforms, including ones driven by AI.

The Australian Government’s Regulatory Technology Roadmap for Modern Awards identified ways for government and industry to support businesses, especially SMEs, to use RegTech solutions to enhance compliance with modern awards. This roadmap is being reviewed and is in the final stages of that process.[42]

Augmentation

3.30DEWR defined automation and augmentation as ‘AI systems either executing or supporting the execution of tasks that would traditionally be performed by human workers’.[43] The use of AI systems can also lead to the creation of tasks.[44]

3.31The Centre for Future Work explained how ADM and AI could lend themselves to automation (and the possible replacement of workers) or augmentation:

Technology, including automated decision-making and machine learning, are not neutral processes. They can be designed and used to assist workers perform their jobs by augmenting worker capacity and freeing up time for more meaningful or creative work. They can also be designed and used to intensify work and to displace workers. They may also be directed to substitution of workers by technology, rather than to augmentation and upskilling even when designed for benevolent purposes there can be unintended consequences that arise from the adoption of these technologies.[45]

3.32AI may augment more jobs rather than automate them. For instance, the International Labour Organisation found that AI could augment 13 per cent of jobs today, and fully automate 2.3 per cent of jobs globally.[46] However, the International Monetary Fund found that in addition to impacts on low to medium-skill jobs, ‘advanced algorithms can now augment or replace high-skill roles previously thought immune to automation’.[47]

3.33ADM and AI present various opportunities. First, they can augment not just tasks and operations, but also employees’ skills and knowledge. They can create more time for workers to develop other skills and to have more face-to-face time. Augmentation can help address labour shortages, increase WHS, and reduce human error. The most cited benefit is that augmentation will create significant productivity gains. Industry Skills Australia observed that, ‘by 2034 technology will augment 4.5 million Australian workers, leading to a 15% capacity uplift to Australian businesses’.[48]

3.34Augmentation needs to go hand in hand with upskilling and training workers to effectively work with these technologies. ADM and AI can be beneficial if they are used ‘to complement rather than supplant human ingenuity and labour’.[49] For instance, in the Australian manufacturing industry, when new inventory management and predictive maintenance in equipment are used by workers trained to use them, ‘these new systems and processes are capable of improving efficiency and productivity, making Australian businesses more competitive’.[50]

3.35A recent IBM global survey found that about 34 per recent of organisations are training employees to work with AI and other forms of automation.[51] For example, many workers will need to learn how to develop good user prompts for generative AI systems. Another key factor to make this successful is for employers to engage in meaningful consultation with workers about how ADM and AI will be integrated.[52]

3.36There are several risks associated with augmentation. One key challenge is that ADM and AI should not be used to make final decisions as human oversight is crucial.[53] They can also impair employee’s skills and abilities.

Upskilling and retraining

3.37As emerging technologies help industries and jobs evolve, opportunities arise for workers to build their digital literacy, and upskill and reskill. It is essential for Australia to create ‘a digitally empowered talent pipeline’[54] to capture the advantages that ADM and AI can offer to our nation, including prosperity and stability. As the Future Skills Organisations conveyed:

The rapid digital transformation of workplaces, driven by emerging technologies, is fundamentally altering the demand for skills in the labor market. By 2026, an estimated 53 per cent of workers will need to be either digital experts or digitally enabled, with the remaining workforce requiring basic digital literacy. The advent of Generative Artificial Intelligence (GAI) is further accelerating this transformation, intensifying the need for advanced digital competencies.[55]

3.38The main types of skills currently in demand include:

  • digital and technical skills: this includes foundational skills to create digitally informed workers, and more technical skills to produce technological experts
  • skills to support growing fields: for instance, there is an expected expansion in data science, which will require skills in gathering, processing, analysing and understanding big data used for ADM and AI models
  • human-centric skills: these are growing in importance given they cannot be fully replicated by AI. For example, social and emotional intelligence, interpersonal and negotiation skills, and creativity are vital
  • higher cognitive skills: like problem-solving and critical thinking.[56]
    1. These skills need to be built throughout life—from school, to VET and higher education, to the workplace. Regarding schools, the Australian curriculum has been updated to further build students’ digital literacy. VET and higher education pathways, as well as professional development for existing and new employees across industries, need to be accessible, cost-effective and industry-aligned.[57]
    2. Workers will need enhanced digital skills over time. Non-technical workers should develop broad digital literacy skills for their job security and career advancement.[58] Alternatively, there is value in becoming a technical specialist. For instance, ‘Deloitte and ACS project a 179% growth in workers skilled in advanced data analytics and a 268% growth in workers skilled in high-performance computing by 2030’.[59]
    3. Industry Skills Australia observed that, ‘without those skills and workers, we will then lose many of the advantages that technology can afford individual businesses, industries and our nation’.[60]
    4. Upskilling and retraining workers can produce benefits such as:
  • increasing productivity
  • addressing the skills gap in the Australian workforce
  • strengthening Australia’s international competitiveness
  • reducing the likelihood of jobs moving abroad
  • promoting higher wages and career advancement.[61]
    1. However, there are also many challenges. New workers will have less exposure to building key skills as tasks become increasingly automated. For example, this is a concern in banking and law. This will require redesigning training and jobs to ensure that employees develop the requisite skills, judgement, and experience to perform. Other concerns include:
  • ensuring technological adoption is complemented with upskilling and reskilling workers otherwise inequality will worsen. An underlying principle should be to ‘leave no worker behind’[62]
  • fragmented approaches between government (Commonwealth, and state and territory) and industries, and a need to scale up efforts[63]
  • the existing skills gap in Australia. For example, an Australian Industry Group survey found that regarding the use of AI in the workplace, employers perceive a skills gap (53 per cent) and lack in leader’s skills and capabilities (41 per cent)[64]
  • difficulty predicting future needs so there could still be skills gaps and labour shortages. The demand for certain technical skills is already changing, for instance data analytics is arguably becoming more important than programming.[65]
    1. To support the upskilling and reskilling of workers, there needs to be collaboration between government, industry, education and training providers, and unions to safely and responsibly use ADM and AI in work settings.
    2. Government needs to support employers and workers to build relevant skills. This requires a long-term national strategy and investment. This could consider the growth of companies to support ADM and AI, capacity building through education and training, research and development (R&D), labour market information, and assets and infrastructure. Micro-credentials targeting labour and skills shortages could also be useful. Micro-credentials are more affordable, inclusive, quick to attain, and can be done alongside work or personal commitments. Government could fund programs for workers’ job transitions.[66]
    3. Employers are considering how to support their workers to build skills, such as through the provision of formal and on-the-job training. Figure 3.1 shows the results of businesses surveyed in the Australian Industry Group 2024 Skills and Workforce Survey. It found that most employers were reskilling their existing workforce while also employing new staff with relevant experience.

Figure 3.1Australian Industry Group 2024 Skills and Workforce Survey

Source: Australian Industry Group, Submission 33, p. 60.

3.47Education and training providers also have an integral role to play. Some stakeholders contend that our educational institutions are lagging internationally in fostering the digital skills required for the future workforce. Providers need to be adaptive and provide more responsive curricula and pathways to meet skill needs. RMIT University noted that a $10 million Australian Government fund for higher apprenticeships to address skill shortages in target areas is a positive development.[67]

Promotion of health and safety

3.48DISR is leading work on supporting the safe and responsible use of AI.[68] Employers and workers need to be educated about the safe and ethical use of AI and other technology in the workplace. Safe Work Australia stated that the right structures are in place for WHS, and that risks arising from AI are ‘not uniquely different to other hazards we've faced’.[69]

3.49AI can improve health and safety in workplaces across many industries. This includes employees’ physical and online safety. This is primarily achieved by monitoring, recording and reporting workplace behaviours, including checking employees’ adherence to safe practices. According to a UTS survey, many workers:

believe that proper regulation of AI and automation can help prevent work-related illnesses and accidents, promote healthy work practices and provide guidance around how to safely operate, maintain, and interact with these systems.[70]

3.50Some injuries can be avoided through the automation of physically demanding and dangerous tasks. Using AI in such tasks ‘can support workers by monitoring for, and reducing exposure to, hazardous and risky workplace conditions and behaviour’.[71]

3.51AI can assist employers and workers to understand psychosocial safety risks in the workplace. The eSafety Commissioner raised that AI could improve safety in the workplace by identifying harmful online material, like racist comments, at scale.[72] Furthermore, AI powered chatbots can detect and report sexual harassment, discrimination, and bullying in the workplace. They can also be used to provide tailored advice to victims, like where to seek help. Examples of this support include the #MeTooBots with reporting functions, and AI tools finding deepfakes or identifying trends to mitigate unsafe behaviours.[73] However, Basic Rights Queensland identified that AI is a double-edged sword as it can also exacerbate the risk of workers experiencing these unacceptable behaviours.[74]

3.52AI and automation present both benefits and threats to health, safety and wellbeing in the workplace. For instance, technologically enabled surveillance can bring advantages and risks to workers’ safety. CCTV and computer vision systems can collect evidence about customer aggression towards workers, but increased monitoring can have negative impacts on workers’ wellbeing.[75] In a survey conducted by UTS, it was found that most retail workers valued facial recognition technology and ‘are willing to accept their data being collected and processed as a trade-off for increased safety’.[76]

Sector study: benefits in healthcare

3.53Stakeholders highlighted significant benefits of ADM and AI in the healthcare sector for employers, staff, and patients, as well as challenges to overcome to ensure positive outcomes. The Committee heard from allied health professionals, doctors, nurses and midwives, and pharmaceutical professionals.

3.54These diverse potential benefits include:

  • improving the delivery of care and patient outcomes
  • supporting the safety of staff and patients
  • increasing access to care (including virtually) and remote patient monitoring
  • freeing up from some administrative tasks to have more time to provide care
  • increasing productivity and efficiencies in the provision of healthcare services and reducing staff burnout
  • improving access to, and the collection of, patient information
  • developing more personalised patient management plans
  • enhancing early medical diagnosis and possibly reducing negligence claims
  • assisting with drug discovery and development
  • improving treatment accuracy
  • answering clinical questions.[77]
    1. The Australian Medical Association summarised further benefits including improved decision-making using data-driven insights, AI-driven chatbots streamlining doctors’ internal communication, a decrease in menial tasks leading to increased job quality, and enhanced performance by identifying skill gaps and providing individualised training.[78]
    2. Examples of useful applications of AI in the healthcare sector include staff safety alerts about patients in AI-based Electronic Health Record management systems, and anaesthetists wearing AI-augmented smart glasses to decrease their mental strain.[79] A survey conducted by the UTS Human Technology Institute underlined some positive uses of AI for nurses, such as AI algorithms being used to analyse medical images in X-rays and MRIs, as well as decision support systems to alert to dangerous drug interactions and recommend interventions.[80]
    3. The Queensland Nurses and Midwives’ Union recognised the benefits of ADM and AI, but also cautioned against risks:

Whilst many potential benefits do exist, they are not guaranteed and remain reliant on digital technologies being engaged and regulated in a way that drives and protects these benefits for workers. We remain concerned that there are greater risks associated with digital technologies being utilised in healthcare to drive cost savings and efficiencies for employers, which will likely have profound impacts on workers, such as mass workforce redundancies and job displacement.[81]

3.58The Committee heard that staff are generally open to technological changes involving ADM and AI given their benefits, provided certain conditions are met. These conditions include that technology must:

  • be properly managed and regulated, especially given the sensitive and complex nature of healthcare work and services. The Australian Salaried Medical Officers’ Federation said this is especially important for accountability, skills issues, protection against job displacement, and generative AI risks[82]
  • augment rather than replace human workers as they are best positioned to provide holistic healthcare
  • not make decisions devoid of human involvement, rather support decision-making
  • uphold the primacy of the profession. Employers must engage early in consultation about the introduction of technology and how it will change operations, also to not compromise patient outcomes
  • be accompanied with employer training provided to workers to upskill to engage with emerging technology. There are differences between how well positioned organisations and staff are to effectively integrate ADM and AI. For instance, stakeholders stated that public hospitals need additional support.[83]

Committee comment

3.59AI and ADM can provide diverse benefits for employers, workers and regulators. While the effects are varied across sectors, the healthcare sector exemplifies how AI and ADM can create widespread benefits if managed properly.

3.60Although many employers are using AI and ADM, a high proportion have not yet fully grasped the opportunities for their businesses. Regulators are developing their understanding of how AI and ADM can help them in carrying out their duties.

3.61Workers tend to be cautious of the risks of AI and ADM. Notwithstanding, workers are generally open to these technological changes in the workplace, provided that certain conditions are met. For instance, the Committee heard that workers and their representatives want to be consulted on the development, deployment, and use of technologies like ADM and AI in workplaces.

3.62As with previous technological advancements, AI and ADM are expected to offer productivity and efficiency gains. This could boost Australia’s economic growth and increase its global competitiveness. Generative AI is already demonstrating increased productivity for workers generally, as well as for specific cohorts like less skilled employees. It is imperative, however, that workplaces have the right support and regulatory environment to facilitate this growth and prosperity.

3.63Knowledge sharing and investment in R&D can help Australia determine how to best maximise the benefits of emerging technology in a safe and responsible way. The Committee heard that benefits felt by employers will not necessarily flow to workers. Stakeholders suggested that technology be designed and introduced in the workplace with an explicit aim to improve workers’ lives. Moreover, several argued that employers should equitably share productivity gains with workers through higher wages and improved conditions.

3.64Technology affects the evolution of jobs. The Committee considers it important to continuously and actively balance job displacement—linked to automation using ADM and AI—through job augmentation and creation in existing and novel industries. Most non-digital roles will become more digitalised. Having access to, and the ability to use and optimise emerging technology, will become more relevant to job security and career progression. Australia will need workers who can directly support these technologies from their design phase through to their maintenance and review.

3.65AI and ADM can augment tasks, operations, and workers’ skills and knowledge. There is evidence that AI may augment more jobs than automate them. It is the Committee’s view that there should be a specific policy direction that workplaces use technology to enhance, not replace, human workers. Augmentation needs to go hand in hand with upskilling and training workers so they can effectively work with these technologies.

3.66The Committee considers it critical that Australia seizes job creation and skills development opportunities. Government and employers need to help workers build useful skills and capabilities to meet existing and projected workforce needs, and to support labour force transition and minimise disruption to displaced workers.

3.67This involves the identification of skills needed for Australia’s sustainable growth, and a focus on life-long learning and industry-aligned capacity building. The Committee recommends enhancing university and TAFE pathways to support workers seeking to retrain and upskill due to AI and ADM transforming their jobs. Incentives and grant programs to improve the use of these technologies by SMEs are also important.

3.68The Committee notes that business software and RegTech, which may leverage AI, can be useful tools. They can help employers and regulators improve regulatory compliance in workplaces. However, RegTech needs to be monitored for algorithmic bias, and issues around who is accountable for errors resulting in non-compliance when using RegTech. The Australian Government can support employers to comply with their regulatory obligations, including SMEs that may require additional assistance.

Recommendation 7

3.69The Committee recommends that the Australian Government develop data-driven policies and governance, and help maximise the benefits of technologies in the workplace, by:

  • leading cross-sector collaboration and sharing best practice on the safe, responsible and innovative uses of emerging technologies
  • working with universities and industry to support research and development into the impacts of digital transformation on workplaces, especially regarding high-risk settings.

Recommendation 8

3.70The Committee recommends that the Australian Government, in collaboration with employers, peak industry bodies, and educational providers, develop workforce capabilities by:

  • developing microcredentials focused on in-demand fields and skills
  • creating relevant curricula and learning opportunities in university courses
  • enhancing access to foundational skills training through VET and ACE (or equivalent) systems for graduates to obtain a level of informed digital skills
  • developing work-integrated learning to create a pipeline for highly skilled graduates in technology-related fields
  • encouraging lifelong learning through learning programs for workers.

Recommendation 9

3.71The Committee recommends that the Australian Government work with industry to increase support for SMEs to safely and responsibly take up AI and ADM through incentives and grant programs, central expert hubs, guidance on regulatory compliance, and more affordable RegTech solutions.

Recommendation 10

3.72The Committee recommends that the Australian Government work with developers and deployers of RegTech systems to:

  • ensure the design of the RegTech system complies with Australian requirements, and are fit-for-purpose in Australian workplaces
  • conduct regular human-oversight audits of the RegTech system.

Footnotes

[1]Australian Industry Group, Submission 33, p. 4.

[2]Centre for Future Work, Submission 43, p. 2.

[3]SDA, Submission 48, p. 7.

[4]Australian Industrial Transformation Institute, Submission 6, p. 2; ACCI, Submission 54, p. 1

[5]SDA, Submission 48, p. 7.

[6]Business Council of Sustainable Development Australia, Submission 34, p. 7; ACCI, Submission 54, p. 3.

[7]Tech Council of Australia, Submission 62, p 5.

[8]Tech Council of Australia, Submission 62, p. 3.

[9]ACCI, Submission 54, p. 2.

[10]Dr Emmanuelle Walkowiak, private capacity, Committee Hansard, 2 September 2024, p. 32.

[11]BCA, Submission 52, p. 8.

[12]Accenture, Submission 21, pp. 2, 5.

[13]BCA, Submission 52, p. 8; Tech Council of Australia, Submission 62, p. 13.

[14]Associate Professor Alysia Blackham, private capacity, Committee Hansard, 26 July 2024, p. 4.

[15]Mr Joseph Mitchell, Assistant Secretary, ACTU, Committee Hansard, 9 August 2024, p. 6.

[16]Mr Oscar Kaspi-Crutchett, Researcher, Politics, VTHC, Committee Hansard, 2 September 2024, p. 5.

[17]Mr Bernie Smith, NSW Branch Secretary and Treasurer, SDA, Committee Hansard, 2 September 2024, p.15.

[18]UNSW-UTS Trustworthy Digital Society, Submission 12, p. 7.

[19]BCA, Submission 52, p. 9.

[20]ACCI, Submission 54, p. 2.

[21]Work Futures Hallmark Research Initiative, University of Melbourne, (WFHRI), Submission 37, p.5.

[22]ACCI, Submission 54, p. 2.

[23]Future Skills Organisation, Submission 44, p. 6.

[24]BCA, Submission 52, p. 7.

[25]DEWR, Submission 3, pp. 15, 21.

[26]Professor Jeff Borland, Truby Williams Professor of Economics, University of Melbourne, Committee Hansard, 3 July 2024, p. 3.

[27]Science and Technology Australia, Submission 46, p. 3.

[28]BCA, Submission 52, p. 9; RMIT, Submission 35, p. 2.

[29]SDA, Submission 48, p. 2.

[30]DEWR, Submission 3, p. 6.

[31]DEWR, Submission 3, p. 6.

[32]DEWR, Submission 3, p. 6.

[33]Accenture, Submission 21, p. 7; DEWR, Submission 3, pp. 6–7.

[34]Accenture, Submission 21, p. 7.

[35]WFHRI, Submission 37, p. 6; Dr Lisa Heap, Senior Researcher, Centre for Future Work, Committee Hansard, 2 September 2024, p. 30.

[36]BCA, Submission 52, p. 16

[37]ACCI, Submission 54, p. 6.

[38]DEWR, Submission 3, p. 5.

[39]Accenture, Submission 21, p. 7.

[40]DEWR, Submission 3, p. 7.

[41]Accenture, Submission 21, p. 7.

[42]DEWR, Submission 3 p. 8.

[43]DEWR, Submission 3, p. 11.

[44]Australian Industry Group, Submission 33, p. 7.

[45]Centre for Future Work, Submission 43, p. 2.

[46]ACCI, Submission 54, p. 2.

[47]Tech Council of Australia, Submission 62, p. 10.

[48]Industry Skills Australia, Submission 15, p. 6.

[49]ACTU, Submission 60, p. 7.

[50]ACTU, Submission 60, pp. 6, 7.

[51]Centre for Future Work, Submission 43, p. 2.

[52]Mr Robert Potter, National Secretary, ASU, Committee Hansard, 9 August 2024, p. 1.

[53]Ms Lauren Mills, Branch Manager, Artificial Intelligence, DTA, Committee Hansard, 12 July 2024, p. 1.

[54]Tech Council of Australia, Submission 62, p. 7.

[55]Future Skills Organisation, Submission 44, p. 2.

[56]Future Skills Organisation, Submission 44, p. 2.

[57]Future Skills Organisation, Submission 44, p. 2; Industry Skills Australia, Submission 15, p. 15.

[58]RMIT, Submission 35, p. 2.

[59]RMIT, Submission 35, p. 2.

[60]Industry Skills Australia, Submission 15, p. 2.

[61]ACCI, Submission 54, p. 2.

[62]Industry Skills Australia, Submission 15, p. 3.

[63]Future Skills Organisation, Submission 44, p. 2.

[64]Australian Industry Group, Submission 33, p. 4.

[65]Australian Industry Group, Submission 33, p. 5.

[66]BCA, Submission 52, p. 9; Tech Council of Australia, Submission 62, p. 1; ACCI, Submission 54, p. 2.

[67]RMIT, Submission 35, p. 6.

[68]DISR, Artificial intelligence, DISR website, 2024, accessed 23 January 2025.

[69]Ms Katherine Taylor, Acting Branch Manager, Work Health and Safety Framework and Workers Compensation Policy Branch, SWA, Committee Hansard, 20 September 2024, p.3.

[70]UTS Human Technology Institute, Submission 27, p. 74.

[71]DEWR, Submission 3, p. 16.

[72]eSafety Commissioner, Submission 36, p. 2.

[73]eSafety Commissioner, Submission 36, p. 2.

[74]Basic Rights Queensland, Submission 63, p. 6.

[75]UTS Human Technology Institute, Submission 27, p. 44.

[76]UTS Human Technology Institute, Submission 27, p. 37.

[77]ASMOF, Submission 47, p. 4; Queensland Nurses and Midwives’ Union (QNMU), Submission 11, p. 3.

[78]Australian Medical Association (AMA), Submission 14, p. 3.

[79]UTS Human Technology Institute, Submission 27, p. 31, DEWR, Submission 3, p. 16.

[80]UTS Human Technology Institute, Submission 27, p 33

[81]QNMU, Submission 11, p. 4.

[82]ASMOF, Submission 47, p. 4.

[83]AMA, Submission 14, pp. 1–2; QNMU, Submission 11, p. 4.