Foreword

Foreword

The use of artificial intelligence (AI) and automated decision making (ADM) is significantly influencing workplaces and the way they operate. Worldwide, governments and industries are grappling with how to effectively manage emerging technologies while enabling growth and innovation. Australia should continue to embrace the benefits of these technologies and promote their useful applications while also mitigating serious risks.

To help future-proof Australia and its place in the digital world, it is essential to have the right frameworks in place and to build sustainable cross-sector collaboration. Imminent support is required for employers—especially small and medium-sized enterprises—workers, students, and regulators. Australia needs to increase investment in research and development to ensure the safe, responsible and effective use of ADM and AI in the workplace.

The Committee’s inquiry considered how AI and ADM are being used in workplaces and possible safeguards to guide their development and implementation. AI and ADM are creating opportunities for workplaces such as productivity and efficiency gains, and job augmentation. Although many employers across sectors are using these technologies, most have not fully grasped the opportunities they can present to their workplaces.

This inquiry found that the digital transformation has exposed significant risks, including gaps in Australia’s regulatory frameworks and workplace protections. This is especially the case with data and privacy. Australia requires a robust and comprehensive approach to protections, capturing all Australian workplaces and workers.

This report makes twenty-one recommendations that focus on:

  • maximising benefits of AI and ADM in the workplace, including through increased support to employers and employees, and strengthening workforce capabilities;
  • addressing specific risks associated with AI and ADM, such as those relating to work health and safety, and intellectual property;
  • managing high-risk AI systems in workplaces and supporting proposed guardrails;
  • clarifying legal obligations on developers and deployers (employers) of ADM and AI systems as they apply to workplaces;
  • enhancing employee protections, especially regarding their data and privacy, such as protection against excessive and unreasonable surveillance in the workplace, and safeguarding equality and inclusivity;
  • requiring meaningful consultation, transparency, accountability and procedural fairness regarding the use of AI and ADM; and
  • developing information campaigns to build public trust of these technologies, understanding of the relevant frameworks, and of safe and responsible use.

The Government urgently needs to establish and enforce proper management and safeguards, especially in high-risk settings. The Committee supports the proposed mandatory guardrails of the Australian Department of Industry, Science and Resources (DISR) to require developers and deployers of high-risk AI to take specific steps. High-risk AI systems in workplaces should be captured by reforms.

The Committee recommends updates to the Privacy Act 1988 (Cth) and Fair Work Act 2009 (Cth) to protect worker data and privacy. There has been a surge in employers collecting worker data, and concerns around its use. The Fair Work Act 2009 (Cth) could also be amended to improve transparency, accountability and procedural fairness regarding the use of AI and ADM in the workplace. Employers must be held accountable for ADM or AI-driven decision making.

The Committee’s findings and recommendations should be considered alongside work pursued through other inquiry and reform processes. In particular, DISR, the Department of Employment and Workplace Relations, and the Attorney-General’s Department. The Committee also recognises the efforts of the Digital Transformation Agency, the eSafety Commissioner, Safe Work Australia and the Treasury.

While the recommendations put forward in the Committee’s report are fit to regulate the application of AI and ADM currently, it is possible that these technologies may quickly outpace the parameters of its terms of reference.

I would like to thank my parliamentary colleagues on the Committee for their engagement in this inquiry, and the individuals and organisations that provided submissions, appeared at public hearings and participated in site visits.

Ms Lisa Chesters MP

Chair

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