“The immediate focus of the announcement is AI companies, so employers should not assume that every business using AI will face the same direct regulatory obligations,” said Paul O’Halloran, Partner – Accredited Specialist (Workplace Relations) at Dentons.
“But it is a clear signal to scrutinise the AI tools used in recruitment and workforce management, ask suppliers tougher questions about safety and security, and retain meaningful human oversight of decisions affecting employees.”
Melini Pillay, Principal at McCabes, similarly noted that the measures announced to date suggest a focus on the development, testing, deployment and governance of advanced AI systems, rather than the routine workplace use of products such as Microsoft Copilot, ChatGPT or similar productivity tools.
“That said, the proposal signals a broader regulatory shift towards increased accountability, transparency and risk management of AI technologies, particularly where they may contribute to outcomes such as discrimination, privacy breaches, safety risks or other regulatory harms,” Pillay told HRD.
The government’s proposal also includes a new AI safety regulator, which would enforce the protections and be able to impose significant penalties on AI firms that fail to comply with the mandatory obligations.