List of recommendations

2.92The Committee recommends that the Australian Government:

classify AI systems used for employment related purposes as high-risk, including recruitment, referral, hiring, remuneration, promotion, training, apprenticeship, transfer or termination

adopt and implement the Department of Industry, Science and Resources’ proposed mandatory guardrails for high-risk AI

increase the Department of Industry, Science and Resources AI Expert Group membership to include greater industry representation, particularly high-risk industries.

2.93The Committee recommends that the Australian Government review the Fair Work Act 2009 (Cth) to ensure decision making using AI and ADM is covered under the Act, and employers remain liable for these decisions.

2.94The Committee recommends that the Australian Government work with states and territories to ensure greater consistency and modernisation of relevant legislation to enhance employee protections regarding the use of emerging technologies in the workplace.

2.95The Committee recommends that the Fair Work Commission review the National Employment Standards to respond to the adverse effects of significant job redesign caused by emerging technologies by enhancing worker entitlements like flexible work arrangements.

2.96The Committee recommends that the Australian Government review modern awards for high-risk industries to ensure workers are protected where AI has significantly transformed job design.

2.97The Committee recommends that the Australian Government consider developing information campaigns about the use of AI and ADM in workplaces to build public trust of these technologies, especially to:

raise awareness of how the technologies work, including their opportunities and challenges, and Australian Government initiatives and reforms

assist employers to understand their obligations under the Fair Work Act 2009 (Cth)

convey how reforms and initiatives enhance inclusive and sustainable workforces

encourage training and upskilling in high-risk settings and industries.

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.

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.

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.

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.

4.63The Committee recommends that the Australian Government review the Privacy Act 1988 (Cth) and Fair Work Act 2009 (Cth) to protect workers, their data, and privacy by:

banning high-risk uses of worker data, including disclosures to technology developers

prohibiting the sale to third parties of workers’ personal data and any data collected in connection to work or undertaken during employment

requiring meaningful consultation and transparency with workers on the use of surveillance measures and data used by AI systems in the workplace

empowering the Fair Work Commission to manage the dispute resolution process for complaints relating to breaches of workers’ privacy obligations.

4.64The Committee recommends that the Australian Government:

work with states and territories to develop greater consistency and better protections against excessive and unreasonable surveillance in the workplace

explicitly prohibit employers from using technological surveillance in relation to an employee’s protected attribute.

4.65The Committee recommends that the Australian Government work with Safe Work Australia to develop a Code of Practice that identifies and addresses specific work health and safety risks associated with AI and ADM. This includes establishing limits on the use of AI and ADM in workplaces to mitigate psychosocial risks.

5.98The Committee recommends that the Australian Government encourage employers and peak employer bodies to address job displacement as a result of automation in their sectors by:

prioritising job creation and augmentation through comprehensive training and retraining programs

implementing impact assessments on the introduction of technologies to evaluate the effects on workers.

5.99The Committee recommends that the Australian Government amend the Fair Work Act 2009 (Cth) to improve transparency, accountability and procedural fairness regarding the use of AI and ADM systems in the workplace by:

requiring all organisations that use AI or ADM systems to disclose this to existing and prospective workers and customers

developing a legislative right to an explanation, based on the European model

banning the use of technologies like AI and ADM systems for final decision-making without any human oversight, especially human resourcing decisions.

5.100The Committee recommends that the Australian Government consult with industry experts to develop technologies, especially when used in high-risk sectors, that are:

developed with traceability and oversight functions to enhance accuracy and security, and enable human intervention

integrated across sectors in a safe and responsible way

accompanied by technical documentation to support the understanding of system function and outputs.

5.101The Committee recommends that the Australian Government:

require developers to demonstrate that AI systems have been developed using lawfully obtained data that does not breach Australian intellectual property or copyright laws

create explicit protections for Indigenous Cultural Intellectual Property

support the continued creation of Australian-owned intellectual property for technology platforms by establishing an AI Fund for businesses engaged in that work.

5.102The Committee recommends that the Australian Government strengthen obligations on employers to consult workers on major workplace changes before, during, and after the introduction of new technology. This should include consideration of whether the introduction of a technology is fit for purpose and does not unduly disadvantage workers.

5.103The Committee recommends that the Australian Government consider the resourcing and capacity of the Fair Work Commission and Fair Work Ombudsman to assist employers and employees in undertaking enhanced consultation.

5.104The Committee recommends that the Australian Government require developers and deployers (employers) to implement measures against algorithmic bias, including:

using more diverse training datasets and managing rules around user prompts

conducting regular mandatory independent audits to assess the extent and impacts of algorithmic bias.

5.105The Committee recommends that the Australian Government:

extend positive equality duties to all protected attributes grounds under the Fair Work Act 2009 (Cth), as modelled on the positive duty in the Sex Discrimination Act 1984 (Cth)

develop targeted training programs for marginalised cohorts to improve their digital access, literacy, and upskilling regarding ADM and AI technologies

improve diversity across STEM industries to better reflect Australian society, and ensure equity and accuracy in the development and deployment of technology and mitigation of impacts such as gendered and cultural bias.