AI's future job impact factored into Australian compensation payout

A landmark decision by the NSW Personal Injury Commission has incorporated the unpredictable influence of artificial intelligence on future employment into a compensation settlement. The ruling, which awarded nearly $1 million to a man injured in a 2023 car accident, marks the first known instance of a legal body explicitly considering AI's impact on the workforce when calculating future earnings.

Andrew Duong, 34, received $950,000 in damages after sustaining physical and psychological injuries from a head-on collision. A significant portion of this award, $400,000, was allocated for future economic loss. This accounts for his reduced capacity to work, the ongoing impact of his injuries on his ability to find future employment, and the uncertainty surrounding his career prospects.

Commission member Philip Carr stated that Mr. Duong, who had 33 years of working life remaining, should receive a "significant buffer" for future earning uncertainties. This buffer specifically includes the potential impact of AI. "With the uncertainty of any occupation in today's workforce, especially with the advent of artificial intelligence and its workplace challenges during his working life, which requires an allowance for his future continuing loss of capacity," Carr wrote. The tribunal clarified that AI was not found to have cost Mr. Duong his job but rather acknowledged its potential to create greater job market instability.

Before the accident, Mr. Duong worked approximately 70 hours per week in warehouse roles for Aldi and Home Delivery Service. The crash resulted in injuries to his hand, wrist, shoulder, elbow, and lower back, along with psychological trauma. He underwent two wrist surgeries and lost his Aldi job due to being unable to return to full-time duties, though he continued with the delivery company on reduced hours. Mr. Carr noted that while Mr. Duong could maintain his current role with restrictions, his prospects in the broader job market would be "considerably reduced" if he lost that position. Artificial intelligence was one of several factors considered, alongside his injuries, medication, and the risk of job loss.

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And with the uncertainty of any occupation in today's workforce, especially with the advent of artificial intelligence and its workplace challenges during his working life, which requires an allowance for his future continuing loss of capacity.