Why AI Tools Like ChatGPT Could Land You in Front of the Fair Work Commission
In today’s digital age, ChatGPT HR risk is becoming more apparent as businesses increasingly use AI for quick advice. Small business owners often rely on artificial intelligence to streamline tasks like drafting contracts or handling workplace issues. However, when it comes to Industrial Relations (IR), depending solely on ChatGPT HR advice can lead to serious legal trouble, including facing the Fair Work Commission.
At Assurance HR Management (AHR), we recently assisted a client who unknowingly used outdated ChatGPT HR advice. Consequently, what seemed accurate almost triggered significant legal complications. This blog highlights the risks of depending on AI for workplace relations, emphasizes why IR remains inherently human-focused, and outlines how partnering with experienced HR experts can safeguard your business.
The Temptation of AI: Easy, Fast—and Dangerous
ChatGPT and similar AI tools are undeniably powerful. They offer quick answers that feel comprehensive, well-written, and authoritative. For small business owners wearing multiple hats, it’s easy to see why AI is appealing. You can ask a question about terminating a worker, calculating redundancy entitlements, or navigating an enterprise agreement—and within seconds, the AI responds with what looks like professional advice.
But that’s the problem: it looks right, even when it’s not.
Unlike a trained HR or IR advisor, AI doesn’t have the judgment to consider context, current legislation, case law developments, or nuanced workplace dynamics. AI is only as good as the information it’s trained on, and unfortunately, that data may be outdated, regionally irrelevant, or simply incorrect.
Case Study: Outdated ChatGPT HR Advice Consequences
One of our clients approached AHR after using an AI tool to manage a disciplinary process with one of their workers. The advice seemed reasonable—a series of warnings followed by termination for misconduct. But when we reviewed what the AI had provided, it became clear the advice was based on a policy framework and Fair Work Commission precedent that was at least five years out of date.
In today’s fast-evolving IR landscape, five years is a lifetime.
Had the client proceeded with the AI’s guidance, they would have breached procedural fairness requirements and very likely faced an unfair dismissal claim. The potential penalties? Reinstatement orders, financial compensation, and reputational damage.
We were able to step in and implement a compliant process—tailored to their award, industry, and specific situation—that addressed the issue properly and protected the business.
Personal Test: Unreliable ChatGPT HR Advice
After that incident, I decided to do some testing myself. I entered a simple industrial relations query into ChatGPT—something I might expect a small business owner to try—and the answer seemed fine on the surface. But when I challenged the AI to reveal its sources, the response was telling: it either couldn’t cite anything at all, or it provided dead links and outdated legal references.
No citations from the Fair Work Ombudsman.
No links to current awards or national employment standards.
No confirmation that the advice aligned with current Fair Work Commission rulings.
In the world of industrial relations, this isn’t just an oversight. It’s a serious risk.
Why IR Is Not a “Set and Forget” Topic
Industrial relations is not just about reading a law or interpreting a policy. It’s about understanding how those laws are applied in practice. The Fair Work Commission regularly updates rulings. Modern awards are reviewed, changed, and reinterpreted. Enterprise agreements evolve. Worker rights—especially around issues like casual conversion, flexible work, redundancy, and performance management—are in constant flux.
AI cannot—and does not—keep up with that in real-time. Even if an AI tool was accurate six months ago, there’s no guarantee it’s correct today.
The Role of Humans: Why You Still Need Expert Help
At Assurance HR, we know that every business—and every situation—is different. Unlike AI, we ask the right questions. We interpret intent. We look at the full picture, including employment history, workplace culture, and how your actions might be viewed by a Commissioner.
We also stay on top of every single Fair Work update, modern award change, and legislative amendment. And we can represent you if something goes wrong—AI can’t.
More importantly, we don’t just give you information. We help you apply it properly—from drafting documents to conducting meetings to ensuring compliance with every procedural step.
Even if You Think You’re Right—Get it Verified
It’s completely understandable that small business owners want to be proactive. You might read a few articles online, consult an AI tool, or even reference something you saw on social media. But even if you’re 90% right, that remaining 10% could cost you thousands of dollars and months of stress.
That’s why we always say: trust, but verify. If you’ve found something online or received AI-generated advice, bring it to us. We’ll validate it, correct it, and implement it—the right way.
The Real Value of Assurance HR: Peace of Mind
At AHR, we offer more than compliance—we offer peace of mind. Whether you need help interpreting an award, managing a worker issue, or avoiding a dispute altogether, we’re here to protect your business from the risks of guesswork and misinformation.
We’ve designed our services specifically for small and medium businesses, and we offer three flexible levels of support:
- DIY Tools & Resources—for businesses who just need the right templates and guidance.
- Support & Advice—for owners who want expert input while retaining control.
- Full-Service Partnership—for those who want AHR to handle everything on their behalf.
No matter which option you choose, you’ll always get real, current, compliant advice from humans who live and breathe workplace law.
Conclusion: Don’t Let AI Do Your IR
ChatGPT HR risk is significant—AI should not be your sole HR advisor. Before taking risks with AI-generated advice, contact Assurance HR Management. Our expert, compliant guidance guarantees confident and legally sound management of your workplace relations.
👉 Need immediate help? Schedule your free consultation at assurancehr.com.au or call us today. Let AHR handle your HR concerns and provide true peace of mind.
