It should come as no surprise that we’ve seen an increasing use of artificial intelligence (AI) in the finance sector and it has continued to proliferate into almost every aspect of our industry.
And while we need to embrace AI and the many benefits it can bring, not all of us are reaping its rewards.
It’s the elephant in the room – AI and automation always has the potential to lead to job losses.
And unfortunately, we’re seeing a growing trend of major employers in the finance sector being sold AI programs for the sole purpose of cost-cutting and eliminating jobs.
For some time, we’ve heard reports from members about employers (some of the largest financial institutions in our country) purchasing licenses for HR, rostering, employee monitoring, desk booking and other online services that are designed to reduce the workforce. These programs are pitched to employers based predominantly on the number of FTE and salaries that can be cut.
It’s also clear that certain categories of jobs are far more susceptible to impacts from AI, such as roles requiring lower education or training. There’s a risk that these impacts will be felt more by people of lower socioeconomic groups, worsening inequality.
So we’re seeing a situation where already (very) profitable banks and businesses are continuing to reap the rewards of AI through cost savings and increased corporate profits, yet none of these benefits are flowing down to workers.
At a recent Labor Conference in Victoria, we highlighted how AI impacts almost every aspect of our working lives – from rostering and scheduling of our shifts, to how our work is assessed and managed, to disciplinary action and losing our jobs.
AI also underpins so much of the surveillance and monitoring workers are subject to.
And all of this is happening with a distinct lack of transparency by employers and almost no regulation. Neither the Fair Work Act nor the Privacy Act properly deal with AI.
We’ve heard of horror stories from our sister union in Ireland, where workers at the Bank of Ireland had their data harvested by their employer and sold to data brokers, who subsequently on-sold that data to external advertising agencies at a market rate.
This shocking violation of workers’ privacy shows why there needs to be legislative reform to address the impacts of AI on working people (including worker surveillance) and ensure there is fair regulation to protect workers.
At a minimum, we believe that no decisions with adverse consequences on workers should ever be made using AI. It’s essential that these decisions are made by human beings in a way that workers are able to understand and challenge.
Of course, there are efficiencies to be gained from the use of AI, but the challenge will be to ensure that workers are the ones who benefit from it and AI isn’t just further lining corporate pockets.
The finance sector is undoubtedly at the forefront of technological change and we view this as an opportunity to lead the way in the ethical adoption of AI, so that workers and communities reap its rewards.
In February this year, the FSU National Executive considered the impact of AI on finance workers and developed the union’s position.
Our view is that AI must be regulated to ensure that:
We recently made a submission to the Select Committee on Adopting AI, outlining our position and detailing the key risks and benefits of AI. You can read our submission here.
The FSU has also been inundated with requests to make submissions to inquiries on AI and we want to make sure your voices are heard. Complete our quick survey and tell us about your experiences of AI at work.
If you are concerned about AI and how it affects your work, contact our Member Rights Centre on 1300 366 378.
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