Natasha is a leading HR expert, entrepreneur, author and sought-after media commentator for outlets such as Sunrise (Channel 7), ABC Radio and The Australian Financial Review. Natasha co-founded Employee Matters in 2011 to help Australian businesses achieve success through their people.
Employee Matters Managing Director Natasha Hawker recently joined Channel 7's Sunrise to discuss a growing workplace concern: the impact of AI on employee wellbeing and the rise of psychosocial risks in Australian workplaces.
As AI tools become increasingly integrated into day-to-day operations, many organisations are experiencing significant productivity gains. However, there is also a growing conversation around the unintended consequences of rapid AI adoption.
One emerging issue is what has been described as "AI brain fry" – a term used to describe the mental fatigue, cognitive overload and stress that can result from constant exposure to new technologies, information and changing workplace expectations.
During the discussion, Natasha highlighted that while AI provides employees with instant access to information and solutions, it does not reduce the need for human judgement, decision-making and critical thinking. In many cases, employees are being asked to process more information, adapt to new systems and learn new skills at an unprecedented pace.
For employers, this creates an important challenge. As with any workplace change, organisations must consider the potential psychosocial risks associated with AI implementation. This includes managing workloads, providing appropriate training, supporting employee wellbeing and ensuring clear policies are in place around the use of AI tools.
The future of work will undoubtedly involve AI. However, successful adoption requires more than simply introducing new technology. Businesses that balance innovation with employee wellbeing will be best positioned to maximise the benefits while minimising potential risks.
Watch Natasha's full Sunrise interview below to hear her insights on AI, workplace wellbeing and the future of work in Australia.
Transcript
Presenter:
AI is supposed to make life easier, but instead a growing number of workers say it's leaving them stressed, overwhelmed and mentally exhausted. New figures reveal a rise in compensation claims for what's being dubbed "AI brain fry", with experts warning the technology designed to boost productivity could be creating a new workplace health challenge.
So is artificial intelligence helping us or hurting us, and what's the hidden cost of the AI revolution?
For more, we're joined by Michael Tooma, Health and Safety Lawyer at Hamilton Locke, and Natasha Hawker, HR Specialist and Managing Director at Employee Matters. Good to have you with us. Natasha, first to you, what exactly is AI brain fry?
Natasha Hawker:
Brain fry is where we're overloaded. We've got so much information at our fingertips with AI.
Think about when email first came into the workplace years ago. Just because you can receive 150 emails doesn't mean you can process or action 150 emails.
On top of that, we're seeing a lot of employees who are genuinely concerned and anxious about their jobs. Are they going to have to train an AI bot and then potentially lose their job to that trained AI system?
We're also seeing an increase in psychosocial injuries because many business owners have not completed psychosocial hazard assessments or put mitigation strategies in place. As a result, we're seeing a rise in claims.
Presenter:
Okay, Michael, what does psychosocial actually mean? And what is AI doing to our brains that’s leading to personal injury claims?
Michael Tooma:
Psychosocial refers to the interaction between psychological impacts—our emotions, feelings and how we respond to things—and the social setting around us, including relationships and workplace culture.
When you combine these, you get psychosocial hazards. These are increasingly a major focus for regulators, who are proactively managing these risks. In fact, many regulators now have dedicated teams focused solely on psychosocial hazards.
Presenter:
What legal grounds are people using here, and could we see a large class action in Australia?
Michael Tooma:
It’s possible we may see class actions in the future, but at the moment the main claims are workers' compensation claims.
When people are exposed to psychological harm at work, they can develop conditions such as stress or depression, which are compensable under workers' compensation schemes.
That’s the first wave. The second wave may involve negligence claims, and further down the track we could see class actions as well.
Presenter:
Natasha, I thought tools like ChatGPT, Perplexity and Claude were meant to help us work faster. How is this becoming a health issue?
Natasha Hawker:
We’re seeing the biggest change in the workplace since the Industrial Revolution. It’s massive, but businesses and employees are floundering. Everyone is going in different directions.
I hear from business owners asking which AI tool to use—ChatGPT, Perplexity, Copilot—and there’s no clear strategy. People are working at cross purposes.
What we’re finding is there’s often no clear automation or AI strategy in place. So employers don’t really know who is using AI, what they’re using it for, or what the security implications are.
In some cases, business data—or even client data—is being exposed through free AI tools. This creates uncertainty and risk.
We need a more structured, holistic approach to how AI is implemented in the workplace, including clarity around capability, security and use cases.
Presenter:
We’re out of time, but I did want to ask about employee responsibility when using these tools and what that means for accountability. We’ll have to come back to that another time. Thank you both for joining us.
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