The Australian government has warned that AI is likely to target entry-level positions first, a shift that could produce either shorter workweeks and higher pay for ordinary employees or, conversely, greater burnout and intensified monitoring. The warning was delivered by Workplace Relations Minister Amanda Rishworth as part of a broader effort to prepare employers for the coming changes.
Rishworth unveiled a best-practice guide on AI adoption that obliges firms to present workers with a clear plan outlining how automation may affect their roles and to provide pathways into new positions. The document flags that younger, older, First Nations peoples, women and people with disabilities could experience disproportionate impacts, urging employers to address these vulnerabilities from the outset.
During a parliamentary hearing, former industry minister Ed Husic asked which parties would reap the gains from higher productivity generated by AI, highlighting concerns about equitable distribution of benefits. Greens leader David Shoebridge criticised the government for merely “watching from the sidelines” while large firms cut staff, arguing that voluntary guidelines leave workers with no legal recourse when algorithms trigger redundancies.
The guide paints an optimistic scenario in which broader AI uptake lifts productivity, improves service quality and expands profitability, potentially translating into higher wages, shorter and more flexible hours, or more meaningful work for staff. It suggests that automation of routine duties could free employees to focus on higher-value activities, provided that organisations manage the transition responsibly and share the resulting gains.
At the same time, the document acknowledges several “potential hazards”, including intrusive worker surveillance, poor rostering, unrealistic performance targets and the risk of discrimination. It warns that when basic tasks are automated, the remaining work may become more intense and complex, and that some employers could exploit enhanced monitoring tools for stricter performance management, raising concerns about employee wellbeing.
Speaking at a Sydney business forum, Rishworth said some companies have already used AI to eliminate tedious processes, saving time and money. She cautioned, however, that deploying AI without genuine consultation could add an extra step for staff, effectively increasing workloads. Workers, she noted, are willing to adopt AI only when they see clear improvements to their conditions and receive training and support.
The Reserve Bank of Australia reported that, to date, there is little concrete evidence that AI is reshaping the labour market, and it described the scale and nature of future effects as highly uncertain. Nonetheless, the central bank identified tentative signs of impact on roles such as clerks, computer programmers and call-centre agents, while also warning that AI-related investment could be feeding inflationary pressures.
Recent corporate announcements illustrate the pressure points highlighted in the guide: Qantas disclosed plans to cut 850 positions across finance, human resources and marketing, National Australian Bank announced 2,500 job losses and design platform Canva revealed 1,200 redundancies. While the guide offers little detail on AI-driven redundancies, it stresses the need for employers to consult staff about automation plans and to consider the specific vulnerability of entry-level work.