AI in the workplace

AI is accelerating claims. Employers still carry the risk.

Employees can now generate a Fair Work claim in minutes. These claims often look polished and professional, but even when they don’t stack up, you still need to defend them. That means time, money and internal resources. We’re already seeing this play out across Australia, catching many businesses off guard. At the same time, businesses are increasingly using AI for contracts, policies and advice without always realising the risks. What looks right on the surface isn’t always legally sound.

Guides 24 April, 2026

Two risks you can’t ignore

AI being used against you

Employees can generate claims in minutes

Claims look polished and legitimate

May include fabricated case law or incorrect awards

You still need to respond properly

Costs time, money and internal resources

AI being used by you

AI is being used to draft contracts, policies and advice

Output looks professional, but isn’t always legally sound

Can include unenforceable clauses or outdated references

You carry the legal risk, not the AI

Mistakes can weaken your position if issues escalate

What this means for your business

If a claim lands tomorrow, would you know what to do?

You won’t always know if it’s valid

You’ll still need to respond properly

Poor handling can weaken your position

And if your internal processes rely on AI, you may already be exposed without realising it.

Not sure where your exposure sits? Download our free AI in the workplace factsheet and guide to understand the risks – and what to do about them.

AI is changing the risk landscape faster than most businesses are moving. The good news is that with the right processes and advice in place, you don’t have to be caught off guard.

Download your guide now