AI at Work: Managing Workplace Safety Risks

AI at Work: Managing Workplace Safety Risks

Artificial Intelligence (AI) is rapidly transforming the way Australian businesses operate. From automating routine administrative tasks to assisting with data analysis and decision-making, AI offers significant opportunities to improve efficiency and productivity. Alongside these benefits, however, come important workplace health and safety (WHS) considerations that employers cannot afford to overlook.

While many organisations view AI as a technology initiative, its impact extends far beyond IT systems. AI can fundamentally change how work is performed, how employees interact with their roles and how workplace risks emerge. As AI adoption continues to accelerate, employers must ensure that implementation strategies consider worker health, wellbeing and safety alongside operational objectives.

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Mental Health Claims Driving Insurance Pressure

Mental Health Claims Driving Insurance Pressure

Australian employers are facing mounting pressure from rising workers compensation costs, with psychological injury claims emerging as one of the most significant drivers of premium increases.

According to the Australian Financial Review, claim costs are escalating faster than regulators can respond, placing strain on compensation schemes and insurers alike. For business owners, HR leaders and operational managers, this trend is more than an insurance issue; it underscores the urgent need for stronger workplace mental health strategies, effective injury management, and proactive return to work practices.

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What’s a Psychosocial Risk Assessment?

What’s a Psychosocial Risk Assessment?

In 2025, psychological safety is no longer a secondary concern, having become a core workplace obligation. With updated WHS legislation now requiring Australian employers to manage psychosocial hazards with the same rigour as physical risks, psychosocial risk assessments have become essential. At ABILITY GROUP, we help organisations move beyond compliance to build workplaces that are safe, supportive, and strategically resilient.



What Is a Psychosocial Risk Assessment?

A psychosocial risk assessment is a structured process for identifying, evaluating, and controlling workplace factors that could harm mental health or wellbeing. These include:

  • High job demands or low control
  • Poor role clarity or organisational change
  • Bullying, harassment, or interpersonal conflict
  • Isolation, remote work, or lack of support
  • Exposure to traumatic events or unsafe environments

Under SafeWork Australia’s model Code of Practice, these risks must be assessed and managed using the same four-step WHS framework applied to physical hazards.

Why They Matter in 2025

Recent reforms in NSW and Victoria have elevated psychosocial risk management to a legal requirement. Employers must now:

  • Identify psychosocial hazards
  • Assess the likelihood and severity of harm
  • Implement control measures
  • Review and consult regularly

Failure to do so can result in regulatory action, increased workers’ compensation claims, and also (business/organisational) reputational damage.

In Victoria, new regulations commencing in December 2025 will require formal prevention plans and updated compliance codes for psychological health.

Suggested Approach

We support businesses with a tailored, evidence-based process and national WHS standards:

1. Workplace Audit & Hazard Identification

Review job design, leadership, culture, and environmental factors to uncover hidden psychosocial risks

2. Risk Assessment & Prioritisation

Evaluate the likelihood and impact of each hazard, helping you focus on what matters most

3. Control Planning & Implementation

Develop practical, scalable interventions, from workload redesign to peer support programs

4. Policy Integration & Documentation

Update your WHS policies, risk registers, and reporting tools to reflect 2025 compliance standards

5. Training & Engagement

Equip managers and teams with the skills to recognise, report, and respond to psychosocial risks—building a culture of care and accountability

Turning Compliance into Culture

Psychosocial risk assessments are no longer optional; they are a legal obligation and strategic necessity. As psychological injury claims rise and WHS reforms take hold, businesses should act now to protect their people and business.

ABILITY GROUP can help you:

  • Meet your legal obligations
  • Reduce risks of psychological harm
  • Reduce workers’ compensation exposure
  • Build a safer, more resilient workplace

Need help?

Contact our team to discuss.


Further Information

Source: safework Australia

Title: Identifying, assessing, controlling and reviewing

Read Time: 5+ minutes

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