Australian companies face 'AI washing' claims after wave of job cuts, offshoring

Australian companies are increasingly citing artificial intelligence when announcing job cuts and restructuring, prompting accusations that “AI washing” disguises more conventional cost-cutting and offshoring. Qantas plans to eliminate 850 jobs and move some corporate functions offshore as part of an AI overhaul with Accenture. Unions say the work is being shifted to lower-paid workers abroad rather than replaced by technology, and argue that employees deserve transparency and meaningful consultation. WiseTech, Atlassian and Telstra have also linked cuts to AI, while other firms have reduced Australian staffing as they expand in countries including India, the Philippines and Vietnam.

University of Sydney professor Uri Gal says companies can present layoffs as innovation when they attribute them to AI, even before the technology has delivered productivity gains. He points to Qantas’s plan to transfer work to Accenture, mainly in India, and then automate it, questioning why the work must first move to another workforce if AI makes the roles redundant. The Reserve Bank says AI has not yet caused widespread job losses, though job advertisements are weakening in occupations more exposed to it. The dispute comes as Australia faces persistent inflation, high interest rates and unemployment at a five-year high, creating political pressure for the government. The government says employers should help workers gain the skills to benefit from new technology.