The report was released following an inquiry into workplace digital transformation, which found that support is required for workplaces to increase investment in research to develop safe and responsible use of Automated Decision Making (ADM) and AI in the workplace.
RMIT’s submission – ‘Dark side of AI in HRM: Risks, Ethical Concerns and Imperative for information’ – was drafted by Dr Hardik Bhimani, Dr Sehrish Shadid and Dr Ancy Gamage. Drawing on several recommendations proposed by the RMIT submission, the Report identified several key areas of reform:
- Principles of Fairness and Ethical Use
- Transparency and Accountability
- Collaboration and Stakeholder Involvement
- Support for Affected Workers
- Data Protection and Privacy
Addressing the Risks of AI in HRM
Bhimani, Lecturer of Management and Leadership and co-author of the submission, emphasised that with 78% of Australian organisations already using AI in HR (Australian HR Institute, 2024), the need for clear ethical guidelines isn't just important, it's urgent, especially as AI's impact on workers' privacy and data remains a “black box” for many.
“With AI increasingly used for employee surveillance, our submission to the inquiry on Digital Transformation in Workplace calls for robust privacy protections and transparency in data usage to safeguard workers' rights,” he said.
The Report agreed that existing laws and regulations within data privacy and protection should be amended to prevent AI from creating violation of workers’ privacy.
In need of urgent regulation
Bhimani outlined that the rapid rate of development and increasing use of ADM and AI tools in the workplace have created a growing need for regulatory reform.
"Our submission to the Parliamentary Inquiry highlights a concerning trend of algorithmic bias in HR, urging for regulations that ensure AI systems are free from discrimination and promote fairness in hiring."
The report recommended that employers implement measures that work against algorithmic bias that in practice lead to unfair and prejudicial HRM decision-making practices.
This measure followed the by RMIT team’s submission that regulatory guidelines be developed to addresses biases concerns in recruitment through such measures as enabling employee voice mechanisms to facilitate workers to feedback instances of AI misuse.
“Just as algorithms can perpetuate existing biases, we must ensure that AI in HR doesn't become a tool for discrimination, but rather a force for equity and inclusion”, Dr Bhimani explained.
The future of AI regulation
While significant reforms are needed to counteract the effects of AI governance, RMIT’s submission outlined that to future-proof the Australian workforce, AI will need to be embraced in a controlled capacity.
Bhimani explained the importance of embracing these emerging technologies.
As we've learned from past industrial revolutions, we must ensure that the rise of AI in HR doesn't leave workers behind, demanding proactive measures for reskilling and support,” he said.
"Recognising the potential for AI-driven job displacement, our submission to the inquiry emphasises the need for proactive investment in reskilling and upskilling initiatives to support workers in transition."
The RMIT submission noted that going forward, AI should not be seen as “a threat to HR professionals, but rather a powerful tool that can empower them to build a more efficient, effective, and future-proof HR function, provided we navigate the ethical considerations with care”.
Click here to read the full submission from RMIT on the ‘Dark side of AI in HRM: Risks, Ethical Concerns and Imperative for Information’.
The researchers who authored this submission are part of the Centre for Organisations and Social Change (COSC).
COSC is a research centre within the College of Business and Law which specialises in exploring contemporary business, policy and societal challenges while developing evidence-based solutions that work to promote inclusivity and equity.
Find out more about COSC.
Story: Claudia Lavery
