Australian psychologists are warning that without strong safeguards, the rapid spread of Artificial Intelligence (AI) across workplaces risks a loss of staff trust, increasing work health safety breaches, and worsening mental health outcomes.
The Australian Psychological Society (APS), the peak body for psychology, is calling on the Federal Government to act, ahead of this week's high-level Economic Reform Roundtable.
APS CEO Dr Zena Burgess warns that while AI presents potential benefits, businesses rushing to integrate AI must match their investments in technology with careful planning, robust training, and attention to the human factors that drive sustainable performance.
"The key to successful AI adoption is not just about the technology - it's about making sure people feel secure, informed, and valued as their workplace adapts. Change succeeds only when the workforce is engaged and trusted to be part of the process," Dr Burgess said.
Psychologists emphasise prevention over cure. By having organisational psychologists' expertise to design protective mechanisms such as redesigning roles alongside the technology, proactive communication, fair systems of accountability and support for psychological safety, organisations can prevent the large-scale distress that poorly managed technology change can trigger.
"AI technologies must ultimately benefit us all. Therefore, the implementation and use of these technologies must be psychologically-informed, with safeguards that consider motivation, trust, job design and culture," Dr Burgess said.
Dr Burgess noted that history shows organisations pay far more in costly rework, reputational damage and harm to their workforce when risks to people are not managed upfront.
"Organisational psychology is about building protective strategies before problems escalate, ensuring AI adoption strengthens rather than destabilises our workplaces."
As the Federal Government's Economic Reform Roundtable begins this week (19 - 21 August), the APS is urging the Government to engage with psychologists and psychological scientists to shape the guardrails for fast-changing AI use in Australia.
"Psychologists have long contributed to the science underpinning technology adoption, including AI, and they also understand how people respond to change, pressure and uncertainty," Dr Burgess added. "It's imperative the Government draws on this expertise now, because we're at a pivotal moment in Australia's economic future."
While AI promises efficiency gains, real-world examples show that hasty adoption can erode performance and disengage workers, the APS stresses that the real outcomes of AI will depend on the actions of boards and managers to lead effective behaviour change within organisations.
To help businesses and policymakers navigate these challenges, the APS College of Organisational Psychologists is hosting a national webinar, 'People and Productivity: What can Org Psych bring to the national conversation?'
This event will bring together leading voices in organisational psychology to explore the evidence and practical strategies that can position Australia's workforce to meet productivity goals while safeguarding wellbeing at work.
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