Australian companies face 'AI washing' claims after wave of job cuts, offshoring

Detailed summary

By Renju Jose and Christine Chen SYDNEY, Nov 12 (Reuters) - Australia's blue-chip companies are increasingly invoking artificial intelligence as they cut jobs and move work offshore, unions and

SYDNEY, Nov 12 (Reuters) - Australia's blue-chip companies are increasingly invoking artificial intelligence as they cut jobs and move work offshore, unions and experts say, complicating the government's efforts to support employment in a slowing economy.

On Tuesday, Qantas, Australia's flag carrier, said it would cut 850 ‌jobs and outsource some corporate functions offshore as part of an AI-driven overhaul with consulting firm Accenture, a move that has raised accusations of "AI washing."

"AI washing" describes ‌a practice by companies of attributing layoffs to AI tools when the primary driver may be broader cost-cutting measures, such as shifting jobs offshore.

Tech companies WiseTech and Atlassian have cut jobs this year, attributing the losses to ​AI. Telecommunications firm Telstra has also cut jobs from an AI joint venture with Accenture, with some work offshored to India.

More broadly, other firms across corporate Australia have also slashed their domestic headcounts while expanding operations in India, the Philippines and Vietnam, though they did not explicitly mention AI in their announcements.

When asked about the Qantas job cuts, Prime Minister Anthony Albanese, who was unveiling the response to a recent breach of a government website by an OpenAI agent, said AI "represents an enormous opportunity and a major economic issue."

Labour unions have argued that Australian workers were ‌not being replaced by AI, but by lower-paid offshore employees.

"Unions ⁠are concerned about the risk of companies using AI simply as a cover to cut Australian jobs with no accountability," said Australian Council of Trade Unions Secretary Melissa Donnelly.

"From Qantas to the big banks, workers deserve transparency and genuine consultation over decisions that impact their jobs and lives."

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