AI will prove jobs-positive for workers: Industry Minister

Industry and Innovation Minister Tim Ayres has argued an ‘Australian approach’ to AI would see the technologies flourish while protecting workers from their ‘pitfalls’.

Industry and Innovation Minister Tim Ayres. Picture: Thomas Lisson

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Industry and Innovation Minister Tim Ayres says there are more jobs to be gained than lost through artificial intelligence, declaring it would be key to growing the manufacturing sector despite concerns being raised by unions about its impact on the existing workforce.

Senator Ayres is, however, flagging that new regulations will be needed despite this being cautioned by business, arguing that an “Australian approach” to AI would see the technologies flourish while protecting workers from their “pitfalls”.

In an interview with The Australian, the new cabinet minister said renewable energy was key to keeping heavy industry viable into the future although he did acknowledge there would be short-term costs during the transition.

With Jim Chalmers to this week use a major speech to outline details of a productivity roundtable in August, Mr Ayres has blamed the decline in ­manufacturing as a reason for poor ­productivity growth in the past decade and said Future Made in Australia would be ­crucial to ­rebuilding the sector.

“Research and development intensity and productivity growth have declined at the same time as economic complexity in Australia has declined,” Senator Ayres said, arguing that the manufacturing sector traditionally invested in R&D.

“As over the last 25 years our manufacturing sector has got smaller, it’s not surprising that it’s had a parallel impact on productivity growth,” he said.

“We have to lift economic complexity and the manufacturing intensity of our economy as a key ingredient of improving our productivity growth performance.”

With the ACTU urging Labor to regulate AI amid concerns about its impacts on jobs, Senator Ayres said technological advances in manufacturing had historically “generated as (many) new jobs as the disruption in the labour market”.

A former union boss and key Left faction ally of Anthony Albanese, he said he was “very focused” on working with industry to increase the uptake of AI adoption, arguing it would be crucial “to our future competitiveness”.

“I understand the concerns of ordinary Australians who are sceptical of these new technological developments,” he said. “But the one thing that would have an absolutely negative consequence in the labour market is stepping back from new technology adoption, becoming less competitive as other countries adopt faster than us.”

Senator Ayres is not committing to a timeline to hand down regulations on AI, with unions pushing for a stand-alone AI act while the Business Council of Australia is rejecting the need for immediate regulations.

Stating his aim was to see an “Australian approach to AI strategy”, Senator Ayres said there did need to be a regulatory balance between encouraging the technology and protecting people from its “pitfalls”.

“I’m about leaning into the opportunity because it’s critical for our future competitiveness. It’s important for productivity growth and if we get the balance right, we will make work better,” he said.

The Treasurer has also backed the growth of AI, with government sources signalling it would be a key issue canvassed at the productivity roundtable in Canberra.

The roundtable, to be held at the cabinet table in Parliament House in August, will include a small number of leaders from government, business and unions with an aim of landing on consensus for economic reform. Business figures will also be pushing for tax reform and a cut to red tape to improve Australia’s international competitiveness.

While he backed AI’s role in driving productivity growth, Senator Ayres said it was a “mistake to fixate on one thing”. He said describing the business and union positions as being split on AI was a “cartoon of where the debate’s at in Australia”. Most business leaders accepted the need to provide regulation that “supports AI adoption but focuses on a highroad approach to that”, he said.

“I haven’t seen a union leader say there shouldn’t be AI adoption. They’re focused on the here and now issues in terms of jobs and employment and they’ll be focused on the horizon as well.”

Anthony Albanese during a visit to Amazon Web Services in Seattle.

Anthony Albanese at the weekend said he was “convinced” AI could work in the interests of working people. “There are always risks with new technology,” the Prime Minister said while unveiling a $20bn investment pledge by US tech giant Amazon.

“We need to make sure that it works in the interests of our populations, in the interest of economic growth and productivity. And I’m convinced we can do that.”

Senator Ayres said encouraging more private-sector research and development would be key to driving productivity growth.

“I hope to see a report that challenges government and challenges the private sector and universities and our research and development system to lift,” he said.

“The private sector and states and territories have to lift here too.”