Australian companies are facing accusations of AI washing as they justify job cuts and offshore outsourcing by citing artificial intelligence. On Nov 10, Qantas announced it would cut 850 jobs and outsource some corporate functions offshore as part of an AI-driven overhaul with consulting firm Accenture. Unions and experts argue that AI is being used as a cover for broader cost-cutting measures, including shifting jobs to lower-paid workers overseas.
Labour unions have expressed concerns about the lack of transparency and accountability in these decisions. Melissa Donnelly, secretary of the Australian Council of Trade Unions, stated that workers deserve genuine consultation over decisions impacting their jobs. The Australian Services Union accused Qantas of using AI to justify job cuts, warning of a potential race to the bottom if other companies follow suit.
Other firms, including WiseTech, Atlassian, and Telstra, have also attributed job cuts to AI this year. However, some companies have slashed domestic headcounts while expanding operations in countries like India, the Philippines, and Vietnam without explicitly mentioning AI. Prime Minister Anthony Albanese acknowledged AI as both an opportunity and a major economic issue but did not directly address the accusations of AI washing.
Experts caution that companies have incentives to engage in AI washing to appear innovative while reducing costs. Professor Uri Gal from the University of Sydney Business School noted that the Qantas decision seemed more like conventional outsourcing than a genuine AI-driven transformation. The Reserve Bank of Australia reported that AI has not yet led to widespread job losses but noted signs of adjustment in AI-exposed occupations.