Perth, May 25: Artificial intelligence is reshaping workplace risk in Australia, with new research warning that employees are using the technology to better understand their rights, identify underpayments and prepare formal grievances.
Citation Group’s inaugural Workforce Pulse 2026 report found AI adoption was widespread across Australian workplaces, with 48 per cent of small businesses, 65 per cent of medium businesses and 73 per cent of large businesses already using it at work.
However, the report found governance was lagging behind adoption, with only 29 per cent of businesses using AI strongly agreeing that it was being used in a safe and beneficial way.
The report, based on a national survey of 510 Australian business owners and managers, said AI was no longer just a productivity tool for employers. It was also giving employees faster access to employment information, legislation and grievance tools.
Citation Legal partner and solicitor Brittany Byrne said AI was creating a new class of employees and former employees who were more willing and able to test workplace decisions.
“AI is giving employees faster access to information about their rights and entitlements. That doesn’t mean every AI-assisted complaint is valid, but it does mean every complaint needs to be handled properly,” said Byrne. “The businesses most exposed are not necessarily those doing the wrong thing deliberately. They’re the businesses relying on informal processes, verbal conversations and undocumented decisions in an environment where employees are increasingly informed and empowered to act.”
The report said the shift was already being felt across workplace dispute systems, with the Fair Work Commission linking a 70 per cent rise in workload over three years partly to employees using AI tools to lodge claims faster.
However, Citation Group said volume did not necessarily equal validity, with some AI-assisted claims containing legal errors, invented case references or facts that did not align with the circumstances.
For employers, the report warned that informal workplace concerns could now arrive as detailed, multi-page grievances drafted overnight and supported by references to legislation.
Citation Legal partner and solicitor Michal Roucek said the rise of AI-enabled workplace claims was changing how businesses managed employment risk.
“Employees using AI are quickly exposing weaknesses in contracts, policies and payroll compliance – from underpayment claims to unfair dismissal. It’s now more important than ever for businesses to get the right advice from a human expert,” said Roucek. “The new reality in employment relations is that AI makes it easier for employees and former employees to identify gaps, challenge management decisions and escalate concerns before a business even realises it was exposed.”
The report also found 97 per cent of business owners and leaders felt confident managing their workplace responsibilities, despite many having process gaps that could become exposed when challenged.
Two in five businesses had no clear approach to managing HR and people, while 42 per cent had identified a payroll error at some point.
Citation Group recommended businesses review employment contracts and policies, conduct payroll compliance reviews and train managers to identify and respond to AI-assisted grievances.
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