Seven in ten Australian businesses now use AI, reports the CSIRO, and this number will grow in 2025.
AI is likely already shaping how your SME operates. By automating repetitive tasks, it lightens workloads and lets staff focus on more meaningful work. For example, chatbots can manage basic queries, freeing your team to tackle complex issues with a personal touch.
AI also enhances workplace safety. Predictive tools identify risks before they arise, reducing accidents, while wearable devices monitor worker fatigue in real time to prevent injuries.
To truly boost well-being, involve employees in AI implementation. Tailoring AI to their needs not only lifts productivity but also improves morale.
Potential Risks of AI in the Workplace
AI adoption isn’t without challenges. Automation can eliminate roles or portions of jobs, creating uncertainty for staff, even as new opportunities emerge.
Bias and discrimination are real risks. AI systems trained on biased data can reinforce workplace inequities. For instance, an inadequately trained AI tool in recruitment may favour specific demographics. Regular audits can help identify and address these issues.
Privacy concerns are growing. AI often collects extensive employee data, including:
- Productivity metrics (via tools like Microsoft Viva, Slack, or Asana Insights)
- Monitoring software (e.g., Hubstaff, Teramind)
- Wearable devices
- CCTV and biometric systems
- Performance reviews, wellness programs, and HR tools.
Misusing or overusing such data erodes trust and risks legal challenges. Customers may also push back, as seen in the backlash over Bunnings’ facial recognition tech. Safeguard privacy with transparent policies and strong security measures.
Guiding Principles for Ethical AI Use
Transparency is key to ethical AI. Be upfront about how your SME uses AI, the data collected, and its purpose. Clear communication fosters trust and accountability. This goes both ways: according to Smart Company, two-thirds of office workers already use AI without their boss knowing—a phenomenon called “AI by stealth.”
Engage employees in AI adoption. Collaborate on developing technology to enhance their work and skills rather than replace them. This fosters agency and adaptability in an AI-driven workplace.
Strengthen governance to protect your staff and business:
- Establish a clear AI policy.
- Set up oversight mechanisms.
- Conduct regular audits and risk assessments.
- Implement compliance, monitoring, and evaluation programs.
- Define ethical standards, ideally led by an AI ethics officer or committee.
- Provide training for employees and leadership.
- Incorporate staff feedback.
- Work with reputable, trusted vendors.
For guidance, refer to the Governance Institute of Australia’s White Paper on AI Governance and the Australian Government’s AI Ethics Principles. Additionally, explore the Federal Government’s new AI Adoption Centres offering free SME training—find out more here.
Insurance Considerations
Integrating AI introduces new risks, making tailored insurance coverage crucial.
- Management Liability Insurance: Protects against claims of discrimination, wrongful termination, or privacy violations linked to AI use.
- Cyber Liability Insurance: Covers data breaches and misuse of sensitive information collected by AI systems, safeguarding your business from financial and reputational damage in a cyber incident.
- Professional Indemnity Insurance: Addresses errors or oversights in AI deployment that may affect employee rights or safety. This coverage shields your business from liability if your AI system makes a critical mistake.
Collaborate with your insurance broker or adviser to review and adjust your policies, ensuring comprehensive protection as you embrace innovation.
If you would like to know more about balancing AI and worker well-being in your SME for 2025 CLICK HERE, or contact us today.