The artificial intelligence automation dilemma: lessons from recent labour disputes in Australia

Purpose This paper aims to highlight the crucial role of strategic human resource management in addressing labour tensions that arise from the integration of artificial intelligence (AI) and automation in contemporary workplaces. Effective approaches to managing technological transformation while maintaining positive labour relations are also discussed. Design/methodology/approach The paper draws upon two labour dispute cases at supermarket giants, Woolworths and the aviation sector in Australia. The cases are analysed through the lens of strategic human resource management and discussed using previous studies, expert and industry insights. Findings This paper reveals that successful AI integration requires more than technological expertise – it also demands sophisticated people management strategies that can balance innovation with human concerns. To do so, there is a need for strategic workforce planning and AI integration, cultural transformation and change management, ethical considerations and worker well-being, balancing efficiency and human agency and leadership in AI transformation. Comprehensive strategy development, stakeholder engagement, governance structures and skills development are recommended for smooth AI integration in modern workplaces. Originality/value This paper uses two recent labour disputes in Australia to illuminate the critical role of strategic HR management in balancing AI integration with employee well-being and engagement. As AI and automation continue to reshape workplaces, technological transformation must serve both organisational objectives and worker interests. Lessons from this paper can guide future strategic HR approaches to AI integration in ways that promote sustainable and equitable workplace transformation.