Unions Push for AI Rules at Productivity Summit

Australia’s union movement is increasing pressure to regulate how artificial intelligence is introduced, aiming to protect jobs even if it slows the productivity gains expected from the technology. This growing tension will be a key topic at the upcoming national productivity summit, where unions will call for tighter controls while business leaders advocate for more freedom to automate.

Industries such as banking and consulting are quickly adopting AI and advanced computing to reduce costs, especially in areas like administration, HR and call centres. The push gained momentum after a major Australian bank announced it was already using AI in customer service, sparking a wider national conversation. The Productivity Commission has also noted AI’s strong potential to improve efficiency across both private and public sectors.

However, unions led by the country’s peak workers' organisation are preparing to oppose a fast-paced rollout. With close ties to the current government, they argue that workers must be shielded from large-scale job cuts. The early focus appears to be on introducing AI laws targeting larger companies, especially in the finance sector where automation is being aggressively used to cut costs.

The debate extends beyond employment. The rising power and water demands of AI-powered data centres, some of which are already receiving federal funding, are also under scrutiny. Other countries have reported increasing concerns about infrastructure stress due to data centres, especially in regions affected by drought. Australian unions may adopt similar arguments and push for environmental protections as part of AI policy.

It is clear that Australia’s AI transition will come with challenges. Many businesses say they are months away from fully implementing AI systems, but insiders warn that those already prepared may act quickly before new regulations arrive. At the same time, global investors continue to back leading AI players, but some may be underestimating how local rules and strong union influence could affect the Australian landscape.

Source: The Australian, Australian Computer Society, Australian Industry Group

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