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

Australia's major companies are increasingly using artificial intelligence to justify job cuts and offshoring, raising suspicions of "AI washing." This term describes when firms attribute layoffs to AI tools when the main reason might be broader cost-cutting measures such as moving jobs overseas. Companies like Qantas, WiseTech, Atlassian, and Telstra have cited AI as the reason for job losses, despite not explicitly mentioning it in their announcements.

Prime Minister Anthony Albanese highlighted AI as an "enormous opportunity" for the economy but urged transparency and genuine consultation with workers. Unions argue that Australian workers are being replaced by lower-paid offshore employees, expressing concern over companies using AI as a cover for job cuts. The Australian Services Union accused Qantas of using AI to "launder" job cuts.

Professor Uri Gal from the University of Sydney Business School cautioned against accepting AI as the primary explanation for job cuts, noting the incentives for companies to engage in AI washing. The Reserve Bank of Australia has raised interest rates five times this year to combat inflation, with unemployment reaching a five-year high.