The ACTU called for the government to force employers to consult with staff before introducing new AI tools, while business groups warned that additional regulation could stifle adoption and reduce productivity gains.

“I made the point that there’s risk not just for workers. Business owners are looking at their own future or extinction,” said Australian Industry Group chief executive Innes Willox.

The government has previously said it’s working with industry to develop a National AI Capability Plan due by the end of the year, which will set out how to boost investment, grow industry capability, improve AI skills, including retraining workers.

Australia’s cautious approach

It further stresses specific regulation should only be introduced if those frameworks cannot be adapted and if technology-neutral approaches are not workable.

The ‘high stakes’ of AI

Daniel Popovski, AI policy and advocacy lead at the Governance Institute of Australia, told SBS News the stakes are high with the rise of so-called ‘agentic AI’ — autonomous systems that act with little human oversight.

“In reality, there is enormous potential for growth and augmentation if the transition is managed well. The challenge is making sure Australians are prepared and supported through these changes so that AI works for people, not against them,” he said.

“Good governance should be human-centric. It should support organisations that adopt AI responsibly and make sure the gains flow to all workers,” Popovski said.

How the global landscape compares

The UK government has said it will consult the public on AI legislation and is aiming for a proportionate approach that works with existing laws, following its pro-innovation framework.