Fewer hours and higher wages – or more burnout and surveillance: employers told to prepare for AI

Entry-level jobs will be the first to be automated due to AI, but it could mean fewer hours and higher wages for ordinary workers – or make jobs tougher with more burnout and workplace surveillance – the government has warned employers.

While major companies like Qantas and Canva slash their workforces in restructures spurred by AI changes, workplace relations minister Amanda Rishworth said employers must give workers “a clear plan” about how automation could affect their jobs, and the opportunity to move into new roles.

As she launched a new government guide on AI and employment – which cautioned that younger, older and First Nations workers, along with women and people with a disability faced “disproportionate impacts” – another Labor MP, Ed Husic, questioned what workers will get from the AI revolution.

“Who receives the benefits of higher productivity?” Husic, the former industry minister, told a parliamentary hearing examining the big four banks.

“Does it mean better services and lower prices for customers, secure jobs with higher wages for workers, or just lower labour costs and higher returns?”

Rishworth on Thursday launched a “best practice guide on the adoption of AI in the workplace”, saying the new technology must benefit both businesses and employees.

The guide paints an optimistic picture of AI, saying wider takeup could improve productivity, service quality and profitability for businesses, as well as boost wages, offer shorter and more flexible working hours, or provide more meaningful work for employees.

But deeper within the document, it also concedes there are “potential hazards” of AI, including “intrusive worker surveillance, poor rostering practices, intensified or unrealistic performance standards” and potential discrimination.

It suggests that, if basic tasks are automated, humans will be left with more intense and complex tasks – and that some employers could use greater monitoring capabilities for performance management.

In a speech to a business forum in Sydney, Rishworth said some firms had used AI to automate tedious tasks to save time and money, but warned that firms simply adding AI to their company without properly consulting workers could actually increase workloads, as humans have to navigate an added step.

“I’ve spoken to many workers who have told me that they are willing to adopt AI at work where they can see that it will improve their working life. But that willingness cannot be taken for granted,” Rishworth said.

“Will they receive support and opportunities to build new skills? Will their knowledge and expertise still be valued? Will they share in the benefits being created? Without answers to these questions, workers will naturally lose trust in the process and become reluctant to engage with new technologies,” she said.

Greens leader David Shoebridge accused the government of “watching from the sidelines” while big companies slashed their workforce, demanding protection against surveillance and job cuts.

“When the government talks about asking employers nicely to consult staff, what it is really saying is that a worker who loses their job to an algorithm will have no legal recourse at all.

“We have seen Qantas, Canva, NAB and ANZ all firing Australian workers as part of offshoring and an AI rollout – it’s clear the time for optional guidelines has passed,” he said.

“Sharing the benefits of AI through better pay and shorter hours is a good idea, and it is exactly why it needs to be written into law instead of left to the goodwill of employers.”

The Reserve Bank this week reported it had seen “little evidence to date” of AI disrupting Australia’s labour market, but said the size and type of future impacts were “highly uncertain”.

The RBA – which last week warned the construction of datacentres and AI investment was fuelling inflation – said it saw “tentative signs” of impacts on certain roles, like clerks, computer programmers and call centre workers.

Qantas this week announced 850 job cuts which would target finance, human resources and marketing roles. Meanwhile, National Australian Bank announced 2,500 job losses and while Canva announced 1,200 layoffs.

All have been linked partly to the growth in AI.

Rishworth’s workplace guide says little about potential redundancies linked to AI, but warns employers they should be consulting with workers about the takeup of AI and what it might mean for their jobs. It especially raises concern about “entry-level work”, which the guide said may be “the first to be automated”.

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