The Fair Work Ombudsman (FWO) has flagged its investment in a new artificial intelligence pilot program, to determine if an AI-enabled tool could make workplace obligations easier to follow. The revelation shows the increasing openness of federal bodies to experiment with AI, in the hopes of streamlining services and clearing administrative bottlenecks. Related Article Block Placeholder Article ID: 331931 AI-generated unfair dismissal claims swamp Fair Work Commission David Adams SmartCompany can reveal that federal workplace regulators and authorities discussed ways to reduce regulatory red tape for Australian businesses in early March. An official document summarising that high-level meeting, seen by this masthead, shows attendees discussed the complexity of existing regulations. Parties also discussed the threat of commercial AI tools providing incorrect information based on obsolete or incorrect information. Smarter business news. Straight to your inbox. For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free. * indicates required Email Address * By continuing, you agree to our Terms & Conditions and Privacy Policy. In that context, the FWO said it was investing in a pilot program to develop its own AI-enabled tool, and would keep the other parties informed of its progress. It was not immediately clear how advanced that project was, the format it may take, which third-party technology providers may be involved, or how much funding the FWO had invested. SmartCompany asked the FWO for comment on the pilot, its scope, potential external partners, and predicted cost. A spokesperson for the FWO said the organisation is “not currently piloting an AI-powered tool, nor does it have imminent plans to do so”. However, the FWO is “considering opportunities where AI could enhance our public tools, with any future projects subject to resourcing and our AI framework,” they added. The FWO’s AI transparency statement, last updated in February, states, “we do not use AI where the public may directly interact with, or be significantly impacted by it”. However, the statement will be reviewed and updated “when making a significant change to the Agency’s approach to AI”. AI optimism at the Fair Work Ombudsman FWO Anna Booth has previously voiced her interest in AI-enabled tools and their potential to streamline difficult and time-consuming processes at the regulator. Speaking at a Melbourne business group conference in August last year, Booth said her organisation had informed Treasurer Jim Chalmers and Finance Minister Katy Gallagher about its desire to “invest in world-class self-service tools”. While praising the FWO’s existing small business helpline, Booth singled out AI as an area to explore. Related Article Block Placeholder Article ID: 321915 ATO and FWO chiefs bullish on AI to help businesses stay on track David Adams The FWO would like to see its services made “more accessible through use of technology, and AI particularly, is what we have our sights set on,” she said at the time. Booth imagined a natural language tool, capable of answering “a million questions a day”, with answers drawn directly from reliable FWO content. A letter the ombud sent to Chalmers and Gallagher that month discussed how the FWO is considering how AI can “support automating routine or low risk internal business processes”. Booth also proposed the development of a new pay rates calculation tool, with API capability, to replace its existing online pay rate calculator. The current tool “operates on a legacy platform and is not adequately meeting community expectations, particularly with the rapid uptake of public AI tools that often produce inaccurate information,” said Booth. Developing a new pay rates calculator would be “dependent on the availability of dedicated funding”, the ombud added. Authorities battling AI ‘slop’ Related Article Block Placeholder Article ID: 327735 Meet ‘Carla’, the new AI tool for women entrepreneurs, inspired by Carla Zampatti David Adams The new pilot is backdropped by mounting concerns that third-party AI tools are surfacing obsolete or incorrect information, leading employers and workers astray while forcing regulators to investigate claims without merit. The FWO’s sibling organisation, the Fair Work Commission (FWC), in February declared it is being inundated by AI-generated claims of dubious quality. The FWC is now developing a form asking applicants to note if generative AI was used — and if so, to double-check any cases, legislation, or facts mentioned were accurate. Nevertheless, FWC President Justice Adam Hatcher refused to rule out the potential benefits of AI, saying digital systems that inform workers of their basic rights “has to be regarded as a win in terms of access to justice”. Few public-facing government AI tools to date Despite the power of large language models to synthesise regulation into plain English, the federal government has backed few public-facing AI tools to date. Examples include the Small Business Peak chatbot, designed to explain changes to the Fair Work Act, which was developed by the Council of Small Business Organisations Australia (COSBOA) with federal grant funding. In November, COSBOA and 89 Degrees East also partnered to launch the Enterprising ME ‘Carla’ chatbot, a tool designed to help women entrepreneurs access tailored advice and support services. Artificial intelligence tools are only becoming more widely-used internally, helping the public sector analyse vast swathes of administrative data, even as stakeholders grapple with the lessons of Robodebt. Stay in the know Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.