AI in the Workplace: New WHS Duties Employers Can’t Ignore in 2026

What Has Changed Under NSW WHS Law?

In 2026, the NSW Government passed the Work Health and Safety Amendment (Digital Work Systems) Act 2026, clarifying that employers must ensure, so far as is reasonably practicable, that digital systems do not put workers’ health and safety at risk.

This includes systems such as:

• AI-driven rostering and scheduling tools
• Algorithm-based task allocation systems
• Performance monitoring and productivity software
• Automated decision-making tools used in HR and operations

The reforms make it clear that WHS duties extend beyond physical environments to include how work is assigned, monitored, and managed digitally.

Why These Changes Have Been Introduced

The rise of digital work systems has created new and complex risks in the workplace. Regulators have highlighted concerns that AI and automation can contribute to:

• Excessive or unreasonable workloads
• High-intensity performance tracking
• Constant monitoring and surveillance
• Reduced worker autonomy
• Psychosocial harm linked to algorithmic decision-making

These risks are increasingly recognised as part of the broader psychosocial hazard framework under WHS legislation.

Importantly, the intent of the reforms is not to restrict technology — but to ensure it is implemented safely, transparently, and responsibly.

What This Means for Employers

The introduction of explicit WHS obligations around AI and digital systems significantly raises the bar for employers.

Organisations can no longer assume that technology vendors or internal systems operate safely by default. Instead, they must actively demonstrate that risks are being identified and controlled.

Key employer responsibilities now include:

1. Identifying digital work systems

Employers must understand where AI or automated systems are being used across the organisation, including:

• HR and rostering systems
• Workforce management platforms
• Performance tracking tools
• Safety and compliance software

2. Assessing WHS and psychosocial risks

Each system must be assessed for potential risks such as:

• Work intensification
• Unrealistic performance expectations
• Psychological stress from monitoring
• Unsafe task allocation patterns

3. Implementing “reasonably practicable” controls

Controls may include:

• Human oversight of automated decisions
• Limits on algorithmic scheduling
• Transparent performance criteria
• Regular system audits and reviews
• Clear escalation pathways for workers

4. Consulting with workers

Workers must be consulted on how digital systems affect their work, particularly where:

• Workload is generated automatically
• Performance is tracked continuously
• AI influences safety-critical decisions

5. Managing third-party risk

Even where systems are externally provided, employers remain responsible for ensuring they are safe and compliant with WHS obligations.

What Safety Leaders Should Be Doing Now

For WHS and HSE leaders, 2026 is a critical point to review how digital systems are governed within existing safety frameworks.

A practical starting point includes:

• Reviewing all AI and automated systems in use
• Updating WHS risk registers to include digital risks
• Assessing psychosocial hazard controls
• Auditing vendor and platform contracts
• Ensuring WHS policies reflect digital system use
• Verifying consultation processes are in place
• Preparing documentation for regulatory scrutiny

These steps are increasingly important as regulators move towards greater visibility of how technology influences work design.

How Zenergy Can Help

At Zenergy, we understand that the rapid evolution of AI and digital systems is creating new challenges for WHS leaders and organisations across Australia.

Our support includes:

Health & Safety Recruitment

We connect organisations with highly skilled WHS and HSE professionals who have experience in:

• Psychosocial risk management
• Digital systems and safety integration
• High-risk industry environments
• Regulatory compliance and assurance

With access to a strong national network of candidates across multiple industries, we help businesses secure the right expertise quickly — whether for permanent, contract, or project-based roles.

Executive Search for Senior Safety Leadership

For critical leadership appointments, we provide executive search services to secure senior WHS professionals who can:

• Lead organisational safety strategy
• Navigate complex regulatory environments
• Embed governance for emerging risks such as AI and automation

Interim and Contract Solutions

We also support organisations with experienced interim and contract professionals who can:

• Support short-term projects
• Fill urgent capability gaps
• Assist with regulatory change implementation
• Provide specialist expertise during peak demand periods

Consulting Support

Beyond recruitment, Zenergy provides access to consulting capability to help organisations:

• Strengthen WHS frameworks
• Embed psychosocial risk management
• Review safety systems and governance structures
• Align digital systems with WHS obligations

Final Thoughts

AI is transforming the way work is designed, measured, and managed — but it is also reshaping workplace risk.

The 2026 NSW reforms make it clear that digital systems are now part of WHS compliance obligations, particularly where they influence workload, monitoring, and worker wellbeing.

For organisations, the priority is no longer whether AI impacts safety — but how effectively those risks are being managed in practice.

Those who act early will be better positioned to build safer, more compliant, and more resilient workplaces in a rapidly evolving digital environment.