Business groups across Australia have voiced strong opposition to the latest inquiry report on the digital transformation of workplaces, claiming that its recommendations could stifle innovation, increase red tape, and undermine productivity.
The Business Council of Australia (BCA) and the Australian Chamber of Commerce and Industry (ACCI) are particularly critical of proposals that call for greater union involvement in the implementation of artificial intelligence (AI) and automated decision-making (ADM) tools. Both organizations argue that such involvement could lead to excessive regulation and hinder the adoption of new technologies, thus slowing down productivity.
BCA Chief Executive Bran Black expressed concerns that the report’s union-backed recommendations could create significant obstacles for businesses already facing complex regulatory environments. “At a time when we have significant productivity challenges, this union-backed approach will simply add more red tape and slow down technology adoption—ultimately, this is bad for workers and bad for business,” he stated.
Similarly, ACCI Chief Executive Andrew McKellar warned that the report’s one-size-fits-all approach to regulating AI would impose burdensome obligations on businesses, making it harder for them to improve productivity. “The recommendations would create heavy-handed obligations on AI deployment in workplaces and undermine genuine efforts to raise productivity in Australia,” McKellar said.
The report, titled The Future of Work, was released by the House of Representatives Standing Committee on Employment, Education, and Training, and outlines 21 recommendations aimed at protecting workers amidst the digital transformation of Australian workplaces. Notable recommendations include reforms to the Privacy Act 1988 and the Fair Work Act 2009 to protect worker data and privacy, and measures to modernize legislation to enhance employee protections in industries where AI is transforming job design.
Unions have largely supported the report’s focus on strengthening worker protections. The Australian Council of Trade Unions (ACTU) welcomed the recommendations, particularly those addressing privacy safeguards and worker transparency. ACTU Assistant Secretary Joseph Mitchell emphasized that new technologies, such as AI, should benefit all Australians, not just large corporations. “Workers deserve greater transparency over AI adoption and the collection of personal data by their bosses,” Mitchell said.
The growing concerns surrounding AI adoption, particularly regarding privacy, surveillance, and job displacement, are highlighted in the report. With the rapid rise of AI tools, issues such as excessive data collection, increased surveillance, and potential job displacement are rising risks that need addressing. According to the report, these risks could lead to mental stress, privacy invasion, and even burnout as workloads intensify.
Amid these risks, the Australian Institute of Company Directors (AICD) revealed that only 18% of organizations that have adopted AI have developed formal policies on AI use. To help businesses navigate AI implementation, the Corporate Governance Institute has published a 10-step guide for establishing ethical AI policies that include principles on transparency, accountability, and continuous monitoring.
As AI adoption accelerates, debates over how to regulate its use in workplaces will likely intensify, balancing the need for innovation with protections for workers’ rights and privacy.
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