The growing use of artificial intelligence is raising job demands and adding to workplace stress, which now causes more employee absences than ever before, according to new research. While AI is promoted as a tool to increase efficiency, its fast rollout is putting strain on workers already facing job changes, new skill requirements and role adjustments.
Unscheduled absences due to stress rose from 42% in 2023 to 57% in 2024, based on a national survey of 600 senior managers and HR professionals by the Australian Human Resources Institute. Other common reasons for calling in sick include caring duties at home (72%) and regular illnesses like colds and flu (67%), but stress-related leave has seen the most significant increase. Despite this, overall sick leave has remained stable, at an average of six days per employee each year over the last three years.
Internal pressures are growing as organisations manage both hiring and redundancies, especially as AI continues to reshape job roles. Employers report that automation is increasing workloads, reducing employee control over tasks and making communication more difficult, especially in hybrid or remote roles. More than one third of companies also report a rise in challenges related to job demands or workplace conflict in 2024, showing signs of deeper cultural strain.
The effect of AI on employment remains mixed. Although early concerns suggested automation could remove junior roles, the survey found otherwise. About 41% of organisations reported a rise in entry-level roles linked to AI, compared to only 19% that noted a decrease. This indicates that AI may be changing how work is done rather than removing it entirely, especially as reskilling changes how tasks are distributed.
Although 93% of companies say they now use AI tools, just 68% have formal policies for managing its use. The biggest gaps are among small businesses, where slightly more than half have clear guidelines. Public sector organisations are further ahead, with 90% reporting AI governance frameworks. Most employers are training their teams, and over four in five have consulted with staff about how AI is being introduced, showing steps towards a more open approach.
Workplaces now face the challenge of bringing in automation without damaging employee wellbeing. Effective oversight, along with practical training and regular communication, will be central to using AI to boost productivity without increasing burnout or disconnection at work.
