AI in Australian workplaces under spotlight as Labor weighs smart glasses ban and new worker safeguards

Labor is pitting its hopes on artificial intelligence to play a role in boosting sluggish productivity in Australian workplaces but declared the technology must have safeguards for employees — vowing to start with a smart glasses ban in government offices.

Treasurer Jim Chalmers declared on Friday AI would be the “most transformative technology” which would have a “defining influence” on the Australia’s economy if the nation could cease the opportunities of while mitigating the potential risks.

The contrasting priorities took centre stage at Canberra roundtable of major employers on Friday, hosted by Workplace Minister Amanda Rishworth to share the benefits and risks of AI adoption in their businesses.

It included the Commonwealth Bank of Australia, Microsoft, AGL, Telstra, Kmart, Blackmores Group and Ramsay Health Care.

“What we’re doing, in a tripartite way, is ensuring that we are looking at what does best practice mean when it comes to adopting AI in the workplace,” Ms Rishworth told ABC on Friday.

“We know that there is some nervousness from both businesses but also employees about how their job might change when it comes to AI.

“There is so much transformation going on. We need to ensure that workers have the confidence that when AI is adopted in the workplace, that it will be done in a way that is best practice that actually ensures that workers are supported.”

Ahead of the meeting the government announced it was exploring a potential ban on smart glasses capable of covertly recording people in Commonwealth buildings amid privacy concerns.

The glasses, which shot to prominence after Kylie Jenner promoted Meta’s latest model, are increasingly becoming cheaper and more accessible.

However, it’s understood Katy Gallagher who is responsible for the public service will explore how to exempt people who need them for legitimate use such as visual impairment.

Dr Chalmers said AI would feature “front and centre” of the upcoming 2026 Intergenerational Report due to be released next week.

“This transformative technology will influence every part of our society and every part of our economy in the decades to come, and that’s why it is such a big focus of the Albanese Labor Government,” he said.

Eight government departments also shared on how they are integrating the technology in the public service but also what they have observed from AI adoption domestically during the first hearings of new parliamentary inquiry into AI on Friday.

Department of Education officials explained how universities were changing their assessment approaches as AI was getting harder to detect in student submissions.

First Assistant Secretary Madonna Morton said as universitiess were self-determinant institutions they could set out how they would assess courses and were increasingly going old-school.

“They’re certainly looking at more kinds of techniques around oral presentations, group work, where they can observe the learning in a much more direct way,” she said.

“Also equally being developed at the same time is the detection technology that can spot that AI and can map that and can alert an assessor to that as well.”

Ms Morton also explained how AI was increasingly featured in newly offered courses.

“We’re certainly noticing universities taking active steps to embrace AI,” she said.

“For example, Swinburne University we know is now introduced to Bachelor of AI in Business. UNSW as well.

“So, you can really see them starting to respond to those future knowledge skills and qualifications that will be needed in that context.”

During Home Affairs testimony, deputy secretary Kira Spencer told the parliamentary committee a key risk for Australia is AI in “information operations” which are security agencies’ use of deception and psychological warfare.

“If you’re looking at targeted foreign interference, they scroll all your parliamentary speeches, your social media profiles, everything about you so they can find a really targeted way to engage with you and make it more likely that you will engage back,” she said.

“AI’s quicker, easier, nastier. And it enables it to be much more realistic and so the language is better.”

Among witnesses to the Joint Select Committee on Artificial Intelligence was staff from the Prime Minister’s newly established “Office of AI”.

Representatives told the committee the government intended to release an exposure-draft on AI standards by the end of the year following consultation before legislation is introduced in early 2027.

Head of the Office of AI Fergus Hanson used his appearance to reassure Australians that they shouldn’t “anticipate just lots of data centres plugging in and sucking the grid” if the government maintained its renewable generation rules.

“It’s all going to be contingent on the additive generation. So, the design of the system is around bringing you know additive renewable generation of the system.

“I don’t think people should anticipate just lots of data centers plugging in and sucking the grid.”