Business Groups Caution on Union Veto for AI Rollout

Published Date : 16/08/2025 

Australia's major business groups are united in their opposition to a government agency's recommendation for workers to co-design the rollout of artificial intelligence, fearing it could lead to a union veto. 

The country’s four major business groups have united to oppose a key government agency’s backing for workers to co-design the rollout of artificial intelligence, fearing it paves the way for a union veto over the technology.

Jobs and Skills Australia, a significant government agency, released a landmark report on generative AI on Thursday. The report recommended the establishment of a whole-of-government institution to steward the transition to AI, a national compact to set out principles of AI implementation, and support for workers “co-designing” the technology.

The business groups, which include the Australian Chamber of Commerce and Industry (ACCI), the Business Council of Australia (BCA), the Australian Industry Group (AIG), and the Confederation of Australian Industry (CAI), have expressed strong concerns over the co-design recommendation. They argue that this approach could give unions undue influence over the implementation of AI, potentially slowing down the adoption of critical technologies and hindering business innovation.

According to the report, the co-design process is intended to ensure that workers are involved in the decision-making process regarding the use of AI in their workplaces. This involvement is seen as a way to address concerns about job displacement and to ensure that the benefits of AI are distributed fairly. However, business leaders are worried that this could lead to a situation where unions have a de facto veto over the use of AI, which could stifle progress and competitiveness.

The report also emphasizes the need for a comprehensive and coordinated approach to AI implementation, including the establishment of a national compact. This compact would outline the principles and guidelines for the use of AI in various sectors, ensuring that the technology is used ethically and responsibly. The business groups, while supporting the need for ethical guidelines, are concerned that the co-design process could undermine the efficiency and effectiveness of these guidelines.

Supporters of the co-design recommendation argue that it is essential for maintaining trust and ensuring that workers feel valued and heard. They point out that involving workers in the decision-making process can lead to better outcomes and can help to address potential issues before they become major problems.

Despite these concerns, the business groups are committed to working with the government and other stakeholders to find a balanced approach to AI implementation. They believe that a collaborative effort can help to address the challenges of AI while ensuring that the benefits are shared fairly and that the economy remains competitive.

The debate over the co-design process is likely to continue as the government and business groups work to find a solution that balances the needs of workers with the demands of business. The outcome of this debate will have significant implications for the future of AI in Australia and could set a precedent for other countries facing similar challenges.

In conclusion, the pushback from business groups on the co-design recommendation highlights the complex and often contentious nature of AI implementation. While the benefits of AI are clear, the challenges of ensuring that these benefits are realized in a way that is fair and sustainable remain significant. The coming months will be crucial in determining how these issues are addressed and how the future of AI in Australia will be shaped. 

Frequently Asked Questions (FAQS): 

Q: What is the main concern of the business groups regarding the co-design process?

A: The main concern of the business groups is that the co-design process could give unions a de facto veto over the use of AI, potentially slowing down the adoption of critical technologies and hindering business innovation.

Q: What does the Jobs and Skills Australia report recommend?

A: The report recommends the establishment of a whole-of-government institution to steward the transition to AI, a national compact to set out principles of AI implementation, and support for workers 'co-designing' the technology.

Q: Why do supporters of the co-design process believe it is essential?

A: Supporters of the co-design process believe it is essential for maintaining trust and ensuring that workers feel valued and heard. Involving workers in the decision-making process can lead to better outcomes and can help address potential issues before they become major problems.

Q: What is the role of the national compact in the AI implementation process?

A: The national compact is intended to outline the principles and guidelines for the use of AI in various sectors, ensuring that the technology is used ethically and responsibly.

Q: How might the debate over the co-design process impact the future of AI in Australia?

A: The debate over the co-design process is likely to have significant implications for the future of AI in Australia, potentially setting a precedent for other countries facing similar challenges. The outcome will be crucial in determining how these issues are addressed and how the future of AI is shaped. 

More Related Topics :