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AI and Digital Work Systems: NSW’s First Explicit Workplace Safety Obligations for Algorithms and Automation

21/11/2025by Anita patturajan0Read: 3 minutes

The modern workplace is experiencing a significant and rapid shift because of Artificial Intelligence (AI) and automation. These tools can save time and effort, but without proper management, they can also create new kinds of risks.

For the first time, Work Health and Safety (WHS) laws in NSW are making this official, guided by a recent report from SafeWork NSW which has led to new, explicit duties for businesses. Let’s break down what the Digital Work Systems Duty NSW means for you.

What Exactly is a Digital Work System?

A digital work system is any digital system or software that helps to manage, direct, or keep track of how work is performed. Some of the examples are:

  • An AI that allocates tasks or shifts to employees in real time.
  • Wearable sensors that track a worker’s location and movements.
  • Software that uses algorithms to monitor worker performance.
  • Autonomous mobile robots working in a warehouse alongside staff.

So, whenever tech starts deciding how people work, you’re looking at a digital work system.

What has the new law changed?

The foundation of this change is the existing Work Health and Safety (WHS) Act. Each business has a primary duty of care to keep workers safe from harm. SafeWork NSW’s new guidelines provide a clear indication of how this duty applies to current technology.

  1. The Core Duty Remains the Same: As the Person Conducting a Business or Undertaking (PCBU), you already have a legal obligation to ensure the health and safety of your workers at work. This is your primary duty of care.
  2. The Scope Has Formally Extended: SafeWork NSW has issued a formal advisory. This clarifies that your duty of care includes all risks associated with this AI automation in a workplace. Law is now treating the risks derived from algorithms and software the same as machinery and chemicals.
  3. It’s About Foreseeable Risks: You are now required to anticipate and control harms that arise from digital work systems. This includes physical risks (i.e., a robot bumping into a worker) and psychological risks.
  4. Proactive Management is Required: The law states that companies shall take a proactive approach to managing the risks of automation. You cannot wait for an incident to occur. This means that you must actively identify, assess, and control the risks posed by these systems before implementation and throughout their lifecycles.

The Digital Work Systems Duty establishes the principle of AI workplace safety. You are now required to demonstrate that you have thought through and managed the safety considerations of technologies your workers are using every day.

Your New Duty: Managing the Risks of AI and Automation

The revisions to the WHS regulations in NSW clarify that you are now not only responsible for the physical safety of the employees but also responsible for automation risk management. 

This is a big shift. The law provides parity between the risks of AI and automation with every other risk in the workplace. But what risks are we exactly talking about? Let’s find it out in the next section.

Potential Risks of Digital Work Systems

AI automation in the workplace promises efficiency, but if it’s rolled out without forethought, it can backfire. SafeWork NSW recently noted several risks, such as

  • Increased Work Pressure: An algorithm may impose unreasonable deadlines that result in chronic stress for the employee.
  • Lack of Human Oversight: Full reliance on AI can lead to a lack of oversight of errors and accountability for decision-making.
  • Privacy and Discrimination: Systems that monitor biometric data or employ biased algorithms can degrade privacy or cause discrimination.
  • De-Skilling: With a system dictating every decision, the employee may lose the ability to problem-solve.
  • Safety Risks: A poorly engineered robot or autonomous vehicle can cause an accident or collision.

This isn’t about stopping innovation. Instead, it’s about making tech competent so that it solves problems, not aggravates them. 

How to Meet Your Obligations for Digital Work Systems

When it comes to AI workplace safety, the WHS risk management steps are the same as always:

  1. Identify the Hazards: Before introducing a new system, ask questions. How will it affect workloads? Could it create new physical hazards? Could the data it uses be biased?
  2. Assess the Risks: Determine how likely it is that these hazards could cause harm and how serious that harm could be.
  3. Control the Risks: This is the most important step. Can you redesign the system to be safer? Can you add human checks and balances? Can you provide better training?
  4. Review Controls: Technology and your business change. Regularly check that your safety measures are still working.

At the heart of it, design tech around your people; it should guide them, not override their judgement.

Getting the Right Help to Keep Your Workplace Safe

Digital Work Systems Duty NSW laws make one thing clear: that is, the future of work has already arrived. Staying ahead means managing risks before they manage you.

That’s where the right support helps. At Anitech, we’ve worked with teams across industries to make sure their systems are both safe and compliant. We can assist you by:

  • Conducting risk assessments for your current or planned digital systems.
  • Developing practical policies and procedures.
  • Training your leaders and workers on the safe use of AI and automation.

Don’t let innovation outpace safety; reach out to Anitech, and let’s make your next step a smart and safe one. Contact us today!

Author

  • Anita Patturajan is the Founder and CEO of Anitech and Co-Founder of risk and compliance platform Lahebo. A qualified engineer with a Bachelor of Engineering in Mechanical and Computing from Monash University, she has spent more than two decades helping organisations strengthen their governance, risk, and compliance programs through practical technology solutions.

    Anita has worked across government, IT, manufacturing, warehousing, construction, and pharmaceutical sectors, leading projects in operational risk, business management systems, occupational health and safety, and environmental management. Known for her customer-centric approach, she focuses on turning complex regulatory and operational challenges into simple, actionable frameworks that support growth and resilience for small and medium-sized businesses.

    Passionate about digital transformation, Anita advocates for innovative, data-driven solutions that make compliance easier, enhance safety, and create long-term value for organisations and their people.

by Anita patturajan

Anita Patturajan is the Founder and CEO of Anitech and Co-Founder of risk and compliance platform Lahebo. A qualified engineer with a Bachelor of Engineering in Mechanical and Computing from Monash University, she has spent more than two decades helping organisations strengthen their governance, risk, and compliance programs through practical technology solutions. Anita has worked across government, IT, manufacturing, warehousing, construction, and pharmaceutical sectors, leading projects in operational risk, business management systems, occupational health and safety, and environmental management. Known for her customer-centric approach, she focuses on turning complex regulatory and operational challenges into simple, actionable frameworks that support growth and resilience for small and medium-sized businesses. Passionate about digital transformation, Anita advocates for innovative, data-driven solutions that make compliance easier, enhance safety, and create long-term value for organisations and their people.

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Author

  • Anita Patturajan is the Founder and CEO of Anitech and Co-Founder of risk and compliance platform Lahebo. A qualified engineer with a Bachelor of Engineering in Mechanical and Computing from Monash University, she has spent more than two decades helping organisations strengthen their governance, risk, and compliance programs through practical technology solutions.

    Anita has worked across government, IT, manufacturing, warehousing, construction, and pharmaceutical sectors, leading projects in operational risk, business management systems, occupational health and safety, and environmental management. Known for her customer-centric approach, she focuses on turning complex regulatory and operational challenges into simple, actionable frameworks that support growth and resilience for small and medium-sized businesses.

    Passionate about digital transformation, Anita advocates for innovative, data-driven solutions that make compliance easier, enhance safety, and create long-term value for organisations and their people.