Australian Council of Trade Unions (ACTU) secretary Melissa Donnelly has called on the federal government to establish stronger regulatory protections for workers as artificial intelligence (AI) technologies become more widely adopted across industries. Speaking before a Senate inquiry into AI on Thursday, Donnelly emphasized the need for a regulatory framework with enforcement powers to safeguard workers’ rights in the evolving digital landscape.
Donnelly stressed that these protections should be a prerequisite for allowing large US-based AI companies to train their models in Australia. She argued that current developments have left workers with little control over how AI is developed or deployed, resulting in job losses, increased surveillance, and the appropriation of workers’ efforts without adequate recognition or compensation.
“It is the fundamental responsibility of this inquiry and our political leaders to ensure the fair go is protected in the digital age and that workers are safe, rights and conditions are protected and we have meaningful careers that we can build, especially for those young workers joining the workforce,” Donnelly said.
She criticized employers for introducing AI tools without transparency or meaningful consultation, describing workplace conditions as becoming more degraded and hazardous. Citing National Australia Bank’s (NAB) recent announcement of 2,500 job cuts, Donnelly highlighted the lack of clarity around the role of AI in these decisions. She noted that NAB management initially declined to confirm any connection to AI when questioned by the Finance Sector Union, and only later publicly denied such ties.
“This is a perfect example of the lack of transparency around these decisions that working people have experienced in workplace after workplace, in industry after industry,” Donnelly stated. “Despite NAB and other banks saying we need to grow and develop tech skills in Australia, they are slashing tech and engineering jobs.”
Donnelly also referenced a recent breach of Medicare data as a “watershed moment,” illustrating both the power and potential risks posed by emerging AI technologies. She criticized the responsibility shown by large corporations developing these tools, singling out OpenAI for failing to adequately communicate risks to Australian stakeholders despite lobbying efforts to ease regulatory burdens.
“OpenAI keeps telling us what we must do to make it easier for them to develop their products here. We know they have knocked down doors to lobby for their changes when it suited them,” she said. “But when the risk was to us, to Australians, they couldn’t even be bothered to send an email to the right address.”
Donnelly argued that Australia should aim to develop its own sovereign AI capability rather than remain dependent on foreign technology providers. She called for national investment in AI that aligns with Australia’s social values and preserves fair working conditions, ensuring the country remains a producer rather than merely a consumer of AI innovations.
“We absolutely can be an AI maker and not a taker. But we must do this based on our values, our social contract,” she said. “This means protecting the fair go so we can pass it on to the next generation.”