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

Australian blue-chip companies are increasingly using artificial intelligence (AI) to justify job cuts and offshoring work, raising accusations of "AI washing," according to unions and experts. Qantas, Australia's flag carrier, announced it would cut 850 jobs and outsource some corporate functions to Accenture, a move that has been criticized as AI washing.

Tech firms WiseTech and Atlassian also cited AI as the reason for job cuts. Telecommunications firm Telstra has cut jobs through an AI joint venture with Accenture, with some work being offshored to India. The Australian government and unions have expressed concerns over the practice, fearing it may lead to lower-paid offshore employees replacing Australian workers without accountability.

Prime Minister Anthony Albanese acknowledged AI as an "enormous opportunity" but urged transparency and genuine consultation during job decisions. The Reserve Bank of Australia stated that AI has not yet led to widespread job losses, but noted tentative signs of adjustment.