AI in the Workplace, What Safe Work Australia’s New Guidance Means for Australian Employers

Artificial intelligence (AI) and digital technologies are rapidly changing the way Australian workplaces operate. From automated rostering and employee monitoring to generative AI, robotics and digital safety systems, technology is creating new opportunities to improve productivity, efficiency and workplace safety.

However, these advancements also bring new work health and safety (WHS) challenges.

Recognising the growing impact of technology on Australian workplaces, Safe Work Australia released new guidance on AI and digital technologies on 23 July 2026, helping employers, workers and other duty holders understand and manage the potential health and safety risks associated with introducing and using these technologies.

The message is clear, introducing new technology does not remove an employer’s responsibility to provide a safe and healthy workplace.

Technology Brings Opportunities, But Also New Workplace Risks

AI and digital technologies are now used across almost every industry.

Examples include:

• Artificial intelligence and generative AI applications.
• Automated machinery, robotics and autonomous equipment.
• Digital employee monitoring and surveillance systems.
• Wearable technology and safety monitoring devices.
• Automated rostering and workforce management software.
• Mobile applications and digital communication platforms.
• Virtual and augmented reality training systems.

When appropriately selected and implemented, these technologies can deliver significant workplace benefits. Automation can reduce exposure to hazardous tasks, digital monitoring can help identify emerging safety concerns, and AI can assist with analysing workplace data and identifying patterns that might otherwise go unnoticed.

However, technology can also introduce hazards or make existing risks worse.

For example, automated systems that increase production targets or closely monitor employee performance can contribute to excessive workloads, reduced job control and psychological stress. Similarly, automating routine tasks may leave workers responsible for a greater proportion of complex and demanding work, potentially increasing cognitive demands and fatigue.

The challenge for employers is to ensure that technology improves the way work is performed without compromising workers’ health, safety and wellbeing.

Understanding the Psychosocial Risks of AI and Digital Technologies

One of the important aspects of Safe Work Australia’s guidance is its recognition that technology-related risks are not limited to physical safety.

AI and digital technologies can introduce or contribute to a range of psychosocial hazards, including:

1. Increased Workloads and Work Intensification

Automation may reduce the time required to complete routine tasks. However, workers may find themselves managing more complex responsibilities, higher workloads or increased production expectations.

2. Excessive Workplace Monitoring

Digital surveillance and employee tracking systems can create concerns about privacy, fairness and trust. Constant monitoring may also increase work pressure and reduce employees’ sense of autonomy.

3. Reduced Job Control

When algorithms determine work allocation, schedules, performance targets and break times, employees may have limited ability to influence how their work is performed.

4. Fatigue and Excessive Working Hours

Technology that enables employees to work from anywhere can blur the boundaries between work and personal life. Constant connectivity, algorithm-driven workloads and inadequate breaks can contribute to fatigue.

5. Poor Organisational Change Management

Introducing new systems without adequate consultation, training or support can create uncertainty, frustration and additional work demands.

6. Unfair or Automated Decision-Making

AI systems may produce inaccurate, biased or discriminatory outcomes. Where workers have little opportunity to question or challenge automated decisions, this can contribute to poor organisational justice.

7. Harmful Behaviours and Online Harassment

Digital platforms can expose workers to cyberbullying, abusive customer interactions, sexual harassment and other forms of technology-facilitated harm.

These examples reinforce the importance of considering psychosocial health and safety whenever new technology is introduced or existing systems are changed.

Employers’ WHS Responsibilities Haven’t Changed

While AI and digital technologies are relatively new workplace considerations, the underlying WHS responsibilities remain the same.

Under the model WHS laws, persons conducting a business or undertaking (PCBUs) must ensure, so far as is reasonably practicable, the health and safety of workers and other people who may be affected by the business or undertaking.

This includes identifying and managing risks associated with the introduction and use of workplace technology.

Importantly, these responsibilities apply to both physical and psychosocial hazards.

Safe Work Australia’s guidance reinforces that employers should not treat technology implementation as simply an IT or operational decision. It is also a WHS consideration.

This means employers should consider the potential health and safety implications before introducing new systems, changing existing technology or implementing software updates that could create new or different workplace risks.

The guidance also highlights the importance of designers considering safety during the development of AI and digital technologies, including identifying hazards, assessing risks and providing adequate information to businesses using their products.

How Should Employers Manage AI and Digital Technology Risks?

Safe Work Australia recommends applying the same four-step risk management process used for other workplace hazards.

Step 1: Identify Hazards

Identify how the technology could affect workers’ health and safety.

Consider physical risks, such as ergonomic issues, machinery malfunctions and repetitive movements, as well as psychosocial risks associated with increased workloads, surveillance, fatigue and reduced job control.

Importantly, consider how different hazards may interact.

Step 2: Assess The Risks

Where risks are not already known, assess the likelihood and potential consequences of harm.

Consider how the technology will change work processes, responsibilities, workloads, supervision and interactions between workers.

Consult workers who will use or be affected by the technology, as they are often best placed to identify practical concerns.

Step 3: Control The Risks

Employers must eliminate risks where reasonably practicable or otherwise minimise them so far as is reasonably practicable.

Potential control measures include:

• Selecting technology designed with worker health and safety in mind.
• Ensuring automated systems do not create unreasonable workloads or work intensification.
• Allowing workers appropriate control over work pace, task allocation and breaks.
• Implementing human oversight of AI-generated decisions and automated processes.
• Establishing clear workplace policies and procedures for technology use.
• Providing appropriate training, instruction and supervision.
• Engaging WHS and technology specialists when assessing and implementing new systems.

Step 4: Monitor and Review

Risk management does not end once a new system is operational.

Employers should regularly review control measures to ensure they remain effective and respond to any emerging issues.

Reviews may be necessary when technology is updated, new hazards are identified, workers raise concerns or existing controls are no longer effective.

This is particularly important because software updates and changes to AI systems can introduce new risks even when the technology has been in use for some time.

Worker Consultation Is Essential

A key message throughout Safe Work Australia’s guidance is the importance of consultation.

Workers and their health and safety representatives should be involved in decisions about introducing or changing workplace technology where it may affect health and safety.

Consultation should occur early in the process, rather than after decisions have already been made.

Employers should provide workers with an opportunity to understand:

• Why the technology is being introduced.
• How it will change their work.
• Whether it will monitor or collect information about them.
• How automated decisions will be made and reviewed.
• What training and support will be provided.
• How they can raise concerns or report problems.

Genuine consultation can help identify risks that may not be obvious to management or technology providers. It also supports greater transparency, trust and acceptance when workplace changes occur.

A Practical Checklist For Employers

Before introducing AI or digital technologies, employers should consider the following:

• Have potential physical and psychosocial hazards been identified?
• Have workers and their health and safety representatives been consulted?
• Have changes to workloads, work pace and job control been considered?
• Have fatigue and work-life balance implications been assessed?
• Are appropriate human oversight and review processes in place?
• Have suitable control measures been implemented?
• Are workers receiving adequate information, training and supervision?
• Are policies and procedures in place to guide technology use?
• Is there a process for workers to report concerns or challenge inappropriate automated decisions?
• Are controls regularly monitored and reviewed, including following software updates?

This checklist provides a useful starting point for businesses looking to incorporate technology into their existing WHS risk management processes.

Looking Ahead, Building Safer, Technology-Enabled Workplaces

AI and digital technologies will continue to transform Australian workplaces. Their potential to improve productivity, reduce exposure to hazards and support better decision-making should not be overlooked.

However, successful technology adoption must consider more than operational efficiency and financial benefits.

Employers need to understand how technology changes the way people work, how it affects physical and psychological health, and what measures are necessary to protect workers.

Safe Work Australia’s new guidance provides a timely reminder that workplace safety must remain central to technological innovation.

The most effective approach is to consider WHS risks before technology is introduced, involve workers in the decision-making process, implement appropriate controls and continually review how systems are performing.

Ultimately, technology should support safer work, not create new risks for the people using it.

Further Information

Employers, workers and WHS professionals can access Safe Work Australia’s new guidance through its website, Artificial intelligence (AI) and digital technologies – Safe Work Australia.

The guidance includes information about WHS duties, managing risks, and examples of opportunities and potential hazards associated with workplace AI and digital technologies.

Note: Safe Work Australia develops national WHS policy and model guidance but is not a workplace WHS regulator. Employers should also consider the applicable WHS legislation and requirements in their state or territory.

If you are unsure as to what potential risk exposures your business may be facing, get in touch with us today. At Safety for Life we provide practical assistance and strategies to assist you to minimise your risk exposures.

If you are considering a safety software application for the management of risk, tracking the status of corrective actions and having access to data about your risk, then please consider Sherm. Sherm Software offers a comprehensive framework for identifying, documenting, and mitigating workplace hazards. From automated workflows to data-driven insights, Sherm Software empowers businesses to prioritise safety, achieve compliance, and build a resilient workplace culture.