06/02/2026
As workplaces continue to grapple with the emergence and implications of AI, Microsoft has announced a landmark Framework Agreement with the Australian Council of Trade Unions (ACTU), to ensure workers have a voice in how AI and other emerging technologies are implemented in Australian workplaces.
The continuing improvements in AI capabilities has caused increased concern around the displacement of workers, privacy of data, and intellectual property rights. This is compounded by the lack of regulation in the space. This is balanced against the necessity of AI adoption in order for business to remain competitive.
What is the Microsoft agreement?
The agreement between Microsoft and ACTU provides a framework for the involvement of employees and other workers in the design and delivery of AI systems in workplaces to ensure a ‘just transition’. It balances the need for Microsoft to harness AI activities, with requests from workers and union to have a say in how their jobs will be impacted by AI and to lessen adverse impacts on employees.
The agreement is grounded in three core objectives:
- Information Sharing: Microsoft providing union leaders and workers with information and learning opportunities in AI technology trends, practical applications, and the evolving digital landscape.
- Worker Voice in Technology Development: Microsoft will create channels and opportunities for union leaders and workers to share their experiences, insights, and concerns with Microsoft with the aim to ensure that technology serves the needs of workers and supports safe, fair, and productive workplaces.
- Collaboration on Public Policy and Skills: Microsoft will work together to find areas of mutual interest to shape public policy in support of technology and needs of workers, with a focus on upskilling and reskilling opportunities.
The National AI Plan released by the Australian Government in 2025 emphasised the importance of workers’ voices and union engagement in guiding decisions on technology adoption, it is likely that we will see similar agreements with other unions and industry sectors in the future.
What does this mean for other employers?
There is likely to be increased engagement by employees and unions on the issue of AI in the coming years. To prepare for these changes, employers should actively consider the impact of AI on its workplace and workforce, including:
- whether its current workforce is AI-skilled and what upskilling might be required to ensure a successful transition for the organisation and employees;
- how it consults with employees about the design and implementation of AI systems, particularly where they impact the current duties of employees;
- how it ensures a safe, fair and productive workplaces including limiting the risks associated with surveillance, bias, discrimination in rostering and reduced employee autonomy;
- upskilling and reskilling opportunities for employees whose roles might be reduced or made redundant by the introduction of AI; and
- how it ensures AI tools are utilised in a transparent way which protects employee data.
The government has committed to ensuring that workers’ rights are fit for purpose in this space, which may see law reform issues come to light in the coming years.
If you have any questions about transitioning to an AI workplace, including ensuring you have a fit for purpose AI Use Policy, please contact our team.